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Howa MachineryTSE:6203 -1.08%61 ROC (Joel Greenblatt) % is 13.66% as of Mar. 2026, which is 108% above its 10-year median of 6.58. GuruFocus rates TSE:6203 with a GF Score™ of 61/100 and a GF Value™ of 円1,023.62 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 3,062 Industrial Products companies, Howa Machinery ranks worse than 54.34% 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. Howa Machinery's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 13.66%.
The historical rank and industry rank for Howa Machinery's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:6203'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -6.83 Med: 6.58 Max: 10.84
Current: 9.69
During the past 13 years, Howa Machinery's highest ROC (Joel Greenblatt) % was 10.84%. The lowest was -6.83%. And the median was 6.58%.
TSE:6203's ROC (Joel Greenblatt) % is ranked worse than 54.34% of 3062
companies
in the Industrial Products industry
Industry Median: 11.585
vs TSE:6203: 9.69
Howa Machinery's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Howa Machinery (TSE:6203) 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.
Howa Machinery ROC (Joel Greenblatt) % Related Terms
Howa Machinery ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Howa Machinery'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.
TSE:6203 vs GEV, ETN, PH: ROC (Joel Greenblatt) % Comparison
For the Specialty Industrial Machinery subindustry, Howa Machinery'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.
Howa Machinery ROC (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Howa Machinery's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Howa Machinery's ROC (Joel Greenblatt) % falls into.
Howa Machinery 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:
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.
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 13.66% mean?
Howa Machinery (TSE:6203) has a ROC (Joel Greenblatt) % of 13.66% 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 Howa Machinery and its competitors. This is 108% above median its historical median of 6.58. According to the industry distribution chart, Howa Machinery ranks #1664 out of 3062 companies in the Industrial Products industry, placing it in the top 54.3%.
Is Howa Machinery's ROC (Joel Greenblatt) % too high?
Howa Machinery's current ROC (Joel Greenblatt) % of 13.66% is 108% above median its 10-year median of 6.58. The Industrial Products industry median ROC (Joel Greenblatt) % is 11.59. Howa Machinery's value of 13.66% is 17.9% above this industry median. Based on the distribution chart, Howa Machinery ranks #1664 out of 3062 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Howa Machinery has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Howa Machinery's ROC (Joel Greenblatt) % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Howa Machinery ranks #1664 out of 3062 companies for ROC (Joel Greenblatt) %. This places Howa Machinery in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.59. Howa Machinery's value of 13.66% is 17.9% above this benchmark. While the company's 10-year median is 6.58 vs. the industry median of 11.59, Howa Machinery 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 an Industrial Products company?
The median ROC (Joel Greenblatt) % among Industrial Products companies is 11.59, based on 3,062 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. Howa Machinery's current ROC (Joel Greenblatt) % of 13.66% is 17.9% 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 Howa Machinery and its competitors. For the Industrial Products industry, the median ROC (Joel Greenblatt) % is 11.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howa Machinery's current ROC (Joel Greenblatt) % is 13.66%, which is 108% above median its own 10-year median of 6.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Howa Machinery stock overvalued right now?
Based on GuruFocus' analysis, Howa Machinery (TSE:6203) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,023.62, compared to a current price of 円1,459.00 — trading 42.5% above its estimated fair value. The current ROC (Joel Greenblatt) % is 13.66%, which is 108% above median its 10-year median of 6.58 and 17.9% above the Industrial Products industry median of 11.59. Howa Machinery's overall GF Score™ is 61/100 with 6 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 Howa Machinery (TSE:6203), the current ROC (Joel Greenblatt) % is 13.66% 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 Howa Machinery (TSE:6203) Overvalued in 2026?
Based on GuruFocus' analysis, Howa Machinery stock appears to be overvalued.
The current stock price of 円1,459.00 is trading 42.5% above its estimated GF Value™ of 円1,023.62.
GuruFocus considers Howa Machinery to be Significantly Overvalued.
Key valuation signals for TSE:6203:
ROC (Joel Greenblatt) %: 13.66% (108% above median its 10-year median of 6.58)
GF Value™: 円1,023.62 vs. price of 円1,459.00 (42.5% above fair value)
Industry Position: 17.9% above the Industrial Products median (#1664 of 3062)
No single metric tells the full story. See the TSE:6203 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Howa Machinery Ltd engages in the manufacture and sale of machine tools, pneumatic and hydraulic equipment, electronic machines, firearms, construction materials and construction machinery.
61GF Score
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