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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. Heiwa Real Estate REIT's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 was 5.38%.
The historical rank and industry rank for Heiwa Real Estate REIT's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:8966'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.46 Med: 4.02 Max: 5.21
Current: 5.21
During the past 13 years, Heiwa Real Estate REIT's highest ROC (Joel Greenblatt) % was 5.21%. The lowest was 2.46%. And the median was 4.02%.
TSE:8966's ROC (Joel Greenblatt) % is ranked worse than 75% of 576
companies
in the REITs industry
Industry Median: 169.935
vs TSE:8966: 5.21
Heiwa Real Estate REIT's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 3.50% per year.
Heiwa Real Estate REIT (TSE:8966) 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.
Heiwa Real Estate REIT ROC (Joel Greenblatt) % Related Terms
Heiwa Real Estate REIT ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Heiwa Real Estate REIT'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.
Heiwa Real Estate REIT ROC (Joel Greenblatt) % Chart
TSE:8966 vs VICI, WPC: ROC (Joel Greenblatt) % Comparison
For the REIT - Diversified subindustry, Heiwa Real Estate REIT'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.
Heiwa Real Estate REIT ROC (Joel Greenblatt) % vs REITs Industry
For the REITs industry and Real Estate sector, Heiwa Real Estate REIT's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Heiwa Real Estate REIT's ROC (Joel Greenblatt) % falls into.
Heiwa Real Estate REIT 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 (May. 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 5.38% mean?
Heiwa Real Estate REIT (TSE:8966) has a ROC (Joel Greenblatt) % of 5.38% as of May. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Heiwa Real Estate REIT and its competitors. This is 34% above median its historical median of 4.02. Over the past decade, Heiwa Real Estate REIT's ROC (Joel Greenblatt) % has ranged from 2.46 to 5.21. According to the industry distribution chart, Heiwa Real Estate REIT ranks #432 out of 576 companies in the REITs industry, placing it in the top 75%.
Is Heiwa Real Estate REIT's ROC (Joel Greenblatt) % too high?
Heiwa Real Estate REIT's current ROC (Joel Greenblatt) % of 5.38% is 34% above median its 10-year median of 4.02. Over the past 10 years, this metric has ranged from a low of 2.46 to a high of 5.21. The REITs industry median ROC (Joel Greenblatt) % is 169.94. Heiwa Real Estate REIT's value of 5.38% is 96.8% below this industry median. Based on the distribution chart, Heiwa Real Estate REIT ranks #432 out of 576 companies in the REITs industry, which is below the industry midpoint. Overall, Heiwa Real Estate REIT has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Heiwa Real Estate REIT's ROC (Joel Greenblatt) % compare to VICI and WPC?
According to the REITs industry distribution chart, Heiwa Real Estate REIT ranks #432 out of 576 companies for ROC (Joel Greenblatt) %. This places Heiwa Real Estate REIT in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 169.94. Heiwa Real Estate REIT's value of 5.38% is 96.8% below this benchmark. Historically, Heiwa Real Estate REIT's own ROC (Joel Greenblatt) % has ranged from 2.46 to 5.21 over the past decade. While the company's 10-year median is 4.02 vs. the industry median of 169.94, Heiwa Real Estate REIT has consistently been below 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 REITs company?
The median ROC (Joel Greenblatt) % among REITs companies is 169.94, based on 576 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. Heiwa Real Estate REIT's current ROC (Joel Greenblatt) % of 5.38% is 96.8% below 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 Heiwa Real Estate REIT and its competitors. For the REITs industry, the median ROC (Joel Greenblatt) % is 169.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heiwa Real Estate REIT's current ROC (Joel Greenblatt) % is 5.38%, which is 34% above median its own 10-year median of 4.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heiwa Real Estate REIT stock overvalued right now?
Based on GuruFocus' analysis, Heiwa Real Estate REIT (TSE:8966) is currently considered Modestly Undervalued. The stock's GF Value™ is 円156,853.41, compared to a current price of 円130,700.00 — trading 16.7% below its estimated fair value. The current ROC (Joel Greenblatt) % is 5.38%, which is 34% above median its 10-year median of 4.02 and 96.8% below the REITs industry median of 169.94. Heiwa Real Estate REIT's overall GF Score™ is 71/100 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 Heiwa Real Estate REIT (TSE:8966), the current ROC (Joel Greenblatt) % is 5.38% as of May. 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 Heiwa Real Estate REIT (TSE:8966) Overvalued in 2026?
Based on GuruFocus' analysis, Heiwa Real Estate REIT stock appears to be undervalued.
The current stock price of 円130,700.00 is trading 16.7% below its estimated GF Value™ of 円156,853.41.
GuruFocus considers Heiwa Real Estate REIT to be Modestly Undervalued.
Key valuation signals for TSE:8966:
ROC (Joel Greenblatt) %: 5.38% (34% above median its 10-year median of 4.02)
GF Value™: 円156,853.41 vs. price of 円130,700.00 (16.7% below fair value)
Industry Position: 96.8% below the REITs median (#432 of 576)
No single metric tells the full story. See the TSE:8966 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heiwa Real Estate REIT Inc is a real estate company that invests in office buildings and residential buildings located in the Tokyo Metropolitan Area and other cities across Japan. The company leases its buildings for rental revenue and renovates its properties. The tenants include both individuals and businesses from various industries such as wholesale and retail, manufacturing, and information and technology services.
71GF Score
Get the complete analysis for TSE:8966
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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