Nihon Knowledge Co (TSE:5252) ROC (Joel Greenblatt) %: 48.40% (As of Mar. 2026) — 46% Below Median

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TSE:5252 Nihon Knowledge Co Ltd TSE:5252
75 GF Score
Price 円810.00
GF Value 円545.82
Valuation Significantly Overvalued
! 4 Warning Signs
View Full Analysis

What is Nihon Knowledge Co ROC (Joel Greenblatt) %?

Nihon Knowledge Co TSE:5252 75 ROC (Joel Greenblatt) % is 48.40% as of Mar. 2026, which is 46% below its 10-year median of 89.17. GuruFocus rates TSE:5252 with a GF Score™ of 75/100 and a GF Value™ of 円545.82 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,818 Software companies, Nihon Knowledge Co ranks better than 50.39% on this metric.

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Nihon Knowledge Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 48.40%.

The historical rank and industry rank for Nihon Knowledge Co's ROC (Joel Greenblatt) % or its related term are showing as below:

TSE:5252' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 20.27   Med: 89.17   Max: 126.15
Current: 20.81

During the past 6 years, Nihon Knowledge Co's highest ROC (Joel Greenblatt) % was 126.15%. The lowest was 20.27%. And the median was 89.17%.

TSE:5252's ROC (Joel Greenblatt) % is ranked better than
50.39% of 2818 companies
in the Software industry
Industry Median: 20.03 vs TSE:5252: 20.81

Nihon Knowledge Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -28.90% per year.


Nihon Knowledge Co  (TSE:5252) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


Nihon Knowledge Co ROC (Joel Greenblatt) % Related Terms


Nihon Knowledge Co ROC (Joel Greenblatt) % Historical Data

* Premium members only.

The historical data trend for Nihon Knowledge Co's ROC (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Nihon Knowledge Co ROC (Joel Greenblatt) % Chart

Nihon Knowledge Co Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial 114.90 126.15 96.84 23.68 20.27

Nihon Knowledge Co Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only 116.92 -6.14 44.33 -7.80 48.40

TSE:5252 vs QH, SHOP, UBER: ROC (Joel Greenblatt) % Comparison

For the Software - Application subindustry, Nihon Knowledge Co's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Nihon Knowledge Co ROC (Joel Greenblatt) % vs Software Industry

For the Software industry and Technology sector, Nihon Knowledge Co's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Nihon Knowledge Co's ROC (Joel Greenblatt) % falls into.


TSE:5252
75GF Score
Nihon Knowledge Co Ltd TSE:5252
ROC (Joel Greenblatt) % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nihon Knowledge Co ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Sep. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(568.243 + 11.571 + 45.141) - (293.737 + 0 + 262.581)
=68.637

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(735.757 + 5.063 + 44.363) - (354.184 + 0 + 260.217)
=170.782

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Nihon Knowledge Co for the quarter that ended in Mar. 2026 can be restated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=313.878/( ( (536.063 + max(68.637, 0)) + (521.525 + max(170.782, 0)) )/ 2 )
=313.878/( ( 604.7 + 692.307 )/ 2 )
=313.878/648.5035
=48.40 %

Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

What does a ROC (Joel Greenblatt) % of 48.40% mean?
Nihon Knowledge Co (TSE:5252) has a ROC (Joel Greenblatt) % of 48.40% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Nihon Knowledge Co and its competitors. This is 46% below median its historical median of 89.17. Over the past decade, Nihon Knowledge Co's ROC (Joel Greenblatt) % has ranged from 20.27 to 126.15. According to the industry distribution chart, Nihon Knowledge Co ranks #1398 out of 2818 companies in the Software industry, placing it in the top 49.6%.
Is Nihon Knowledge Co's ROC (Joel Greenblatt) % too high?
Nihon Knowledge Co's current ROC (Joel Greenblatt) % of 48.40% is 46% below median its 10-year median of 89.17. Over the past 10 years, this metric has ranged from a low of 20.27 to a high of 126.15. The Software industry median ROC (Joel Greenblatt) % is 20.03. Nihon Knowledge Co's value of 48.40% is 141.6% above this industry median. Based on the distribution chart, Nihon Knowledge Co ranks #1398 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, Nihon Knowledge Co has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Knowledge Co's ROC (Joel Greenblatt) % compare to QH and SHOP?
According to the Software industry distribution chart, Nihon Knowledge Co ranks #1398 out of 2818 companies for ROC (Joel Greenblatt) %. This puts Nihon Knowledge Co in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 20.03. Nihon Knowledge Co's value of 48.40% is 141.6% above this benchmark. Historically, Nihon Knowledge Co's own ROC (Joel Greenblatt) % has ranged from 20.27 to 126.15 over the past decade. While the company's 10-year median is 89.17 vs. the industry median of 20.03, Nihon Knowledge Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC (Joel Greenblatt) % for a Software company?
The median ROC (Joel Greenblatt) % among Software companies is 20.03, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nihon Knowledge Co's current ROC (Joel Greenblatt) % of 48.40% is 141.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Nihon Knowledge Co and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 20.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Knowledge Co's current ROC (Joel Greenblatt) % is 48.40%, which is 46% below median its own 10-year median of 89.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Knowledge Co stock overvalued right now?
Based on GuruFocus' analysis, Nihon Knowledge Co (TSE:5252) is currently considered Significantly Overvalued. The stock's GF Value™ is 円545.82, compared to a current price of 円810.00 — trading 48.4% above its estimated fair value. The current ROC (Joel Greenblatt) % is 48.40%, which is 46% below median its 10-year median of 89.17 and 141.6% above the Software industry median of 20.03. Nihon Knowledge Co's overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Nihon Knowledge Co (TSE:5252), the current ROC (Joel Greenblatt) % is 48.40% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Nihon Knowledge Co (TSE:5252) Overvalued in 2026?

Based on GuruFocus' analysis, Nihon Knowledge Co stock appears to be overvalued. The current stock price of 円810.00 is trading 48.4% above its estimated GF Value™ of 円545.82. GuruFocus considers Nihon Knowledge Co to be Significantly Overvalued.

Key valuation signals for TSE:5252:

  • ROC (Joel Greenblatt) %: 48.40% (46% below median its 10-year median of 89.17)
  • GF Value™: 円545.82 vs. price of 円810.00 (48.4% above fair value)
  • GF Score™: 75/100 with 4 warning signs
  • Industry Position: 141.6% above the Software median (#1398 of 2818)

No single metric tells the full story. See the TSE:5252 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nihon Knowledge Co Business Description

Address JS Building 9th Floor, 3-19-5 Kotobuki, Taito-ku, Tokyo, JPN, 111-0042
Nihon Knowledge Co Ltd is a comprehensive ICT service company that provides quality and test technology, development, and security products with a thorough user orientation. The company's services include verification services, Development services, and consultation services. The verification services include Resolving software verification issues through a track record of numerous projects and accumulation of know-how. The development services include management systems for steel wholesalers and processing industries and others.
75GF Score

Get the complete analysis for TSE:5252

ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円810.00
Price
円545.82
GF Value