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Hatsuho Shouji CoTSE:7425 -5.28%80 ROC (Joel Greenblatt) % is 31.22% as of Dec. 2025, which is 27% above its 10-year median of 24.54. GuruFocus rates TSE:7425 with a GF Score™ of 80/100 and a GF Value™ of 円874.61 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 633 Steel companies, Hatsuho Shouji Co ranks better than 90.21% 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. Hatsuho Shouji Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 31.22%.
The historical rank and industry rank for Hatsuho Shouji Co's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:7425'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 14.6 Med: 24.54 Max: 38.89
Current: 31.26
During the past 13 years, Hatsuho Shouji Co's highest ROC (Joel Greenblatt) % was 38.89%. The lowest was 14.60%. And the median was 24.54%.
TSE:7425's ROC (Joel Greenblatt) % is ranked better than 90.21% of 633
companies
in the Steel industry
Industry Median: 7.18
vs TSE:7425: 31.26
Hatsuho Shouji Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 14.40% per year.
Hatsuho Shouji Co (TSE:7425) 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.
Hatsuho Shouji Co ROC (Joel Greenblatt) % Related Terms
Hatsuho Shouji Co ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Hatsuho Shouji 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.
TSE:7425 vs NUE, STLD, RS: ROC (Joel Greenblatt) % Comparison
For the Steel subindustry, Hatsuho Shouji 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.
Hatsuho Shouji Co ROC (Joel Greenblatt) % vs Steel Industry
For the Steel industry and Basic Materials sector, Hatsuho Shouji Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Hatsuho Shouji Co's ROC (Joel Greenblatt) % falls into.
Hatsuho Shouji 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:
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 (Dec. 2025) 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 31.22% mean?
Hatsuho Shouji Co (TSE:7425) has a ROC (Joel Greenblatt) % of 31.22% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Hatsuho Shouji Co and its competitors. This is 27% above median its historical median of 24.54. Over the past decade, Hatsuho Shouji Co's ROC (Joel Greenblatt) % has ranged from 14.60 to 38.89. According to the industry distribution chart, Hatsuho Shouji Co ranks #62 out of 633 companies in the Steel industry, placing it in the top 9.8%.
Is Hatsuho Shouji Co's ROC (Joel Greenblatt) % too high?
Hatsuho Shouji Co's current ROC (Joel Greenblatt) % of 31.22% is 27% above median its 10-year median of 24.54. Over the past 10 years, this metric has ranged from a low of 14.60 to a high of 38.89. The Steel industry median ROC (Joel Greenblatt) % is 7.18. Hatsuho Shouji Co's value of 31.22% is 334.8% above this industry median. Based on the distribution chart, Hatsuho Shouji Co ranks #62 out of 633 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Hatsuho Shouji Co has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hatsuho Shouji Co's ROC (Joel Greenblatt) % compare to NUE and STLD?
According to the Steel industry distribution chart, Hatsuho Shouji Co ranks #62 out of 633 companies for ROC (Joel Greenblatt) %. This places Hatsuho Shouji Co in the top 10% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 7.18. Hatsuho Shouji Co's value of 31.22% is 334.8% above this benchmark. Historically, Hatsuho Shouji Co's own ROC (Joel Greenblatt) % has ranged from 14.60 to 38.89 over the past decade. While the company's 10-year median is 24.54 vs. the industry median of 7.18, Hatsuho Shouji 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 Steel company?
The median ROC (Joel Greenblatt) % among Steel companies is 7.18, based on 633 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. Hatsuho Shouji Co's current ROC (Joel Greenblatt) % of 31.22% is 334.8% 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 Hatsuho Shouji Co and its competitors. For the Steel industry, the median ROC (Joel Greenblatt) % is 7.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hatsuho Shouji Co's current ROC (Joel Greenblatt) % is 31.22%, which is 27% above median its own 10-year median of 24.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hatsuho Shouji Co stock overvalued right now?
Based on GuruFocus' analysis, Hatsuho Shouji Co (TSE:7425) is currently considered Significantly Overvalued. The stock's GF Value™ is 円874.61, compared to a current price of 円1,184.00 — trading 35.4% above its estimated fair value. The current ROC (Joel Greenblatt) % is 31.22%, which is 27% above median its 10-year median of 24.54 and 334.8% above the Steel industry median of 7.18. Hatsuho Shouji Co's overall GF Score™ is 80/100 with 1 warning sign 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 Hatsuho Shouji Co (TSE:7425), the current ROC (Joel Greenblatt) % is 31.22% as of Dec. 2025. 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 Hatsuho Shouji Co (TSE:7425) Overvalued in 2026?
Based on GuruFocus' analysis, Hatsuho Shouji Co stock appears to be overvalued.
The current stock price of 円1,184.00 is trading 35.4% above its estimated GF Value™ of 円874.61.
GuruFocus considers Hatsuho Shouji Co to be Significantly Overvalued.
Key valuation signals for TSE:7425:
ROC (Joel Greenblatt) %: 31.22% (27% above median its 10-year median of 24.54)
GF Value™: 円874.61 vs. price of 円1,184.00 (35.4% above fair value)
Industry Position: 334.8% above the Steel median (#62 of 633)
No single metric tells the full story. See the TSE:7425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hatsuho Shouji Co Ltd is a Japan-based company engages in the sale of secondary steel products and non-ferrous metals. Its products include light-weight steel frames, wire mesh for concrete, sheet rock, car ports, and other construction materials.
80GF Score
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