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NSWTSE:9739 -0.39%79 ROC (Joel Greenblatt) % is 38.05% as of Mar. 2026, which is 2% below its 10-year median of 38.98. GuruFocus rates TSE:9739 with a GF Score™ of 79/100 and a GF Value™ of 円3,028.89 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,817 Software companies, NSW ranks better than 55.88% 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. NSW's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 38.05%.
The historical rank and industry rank for NSW's ROC (Joel Greenblatt) % or its related term are showing as below:
TSE:9739'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 26.25 Med: 38.98 Max: 45.17
Current: 35.26
During the past 13 years, NSW's highest ROC (Joel Greenblatt) % was 45.17%. The lowest was 26.25%. And the median was 38.98%.
TSE:9739's ROC (Joel Greenblatt) % is ranked better than 55.88% of 2817
companies
in the Software industry
Industry Median: 20.25
vs TSE:9739: 35.26
NSW's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -1.40% per year.
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.
The historical data trend for NSW'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:9739 vs IBM, ACN, FISV: ROC (Joel Greenblatt) % Comparison
For the Information Technology Services subindustry, NSW'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.
NSW ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, NSW's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where NSW's ROC (Joel Greenblatt) % falls into.
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 38.05% mean?
NSW (TSE:9739) has a ROC (Joel Greenblatt) % of 38.05% 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 NSW and its competitors. This is near median its historical median of 38.98. Over the past decade, NSW's ROC (Joel Greenblatt) % has ranged from 26.25 to 45.17. According to the industry distribution chart, NSW ranks #1243 out of 2817 companies in the Software industry, placing it in the top 44.1%.
Is NSW's ROC (Joel Greenblatt) % too high?
NSW's current ROC (Joel Greenblatt) % of 38.05% is near median its 10-year median of 38.98. Over the past 10 years, this metric has ranged from a low of 26.25 to a high of 45.17. The Software industry median ROC (Joel Greenblatt) % is 20.25. NSW's value of 38.05% is 87.9% above this industry median. Based on the distribution chart, NSW ranks #1243 out of 2817 companies in the Software industry, which is above the industry midpoint. Overall, NSW has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NSW's ROC (Joel Greenblatt) % compare to IBM and ACN?
According to the Software industry distribution chart, NSW ranks #1243 out of 2817 companies for ROC (Joel Greenblatt) %. This puts NSW in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 20.25. NSW's value of 38.05% is 87.9% above this benchmark. Historically, NSW's own ROC (Joel Greenblatt) % has ranged from 26.25 to 45.17 over the past decade. While the company's 10-year median is 38.98 vs. the industry median of 20.25, NSW 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 20.25, based on 2,817 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. NSW's current ROC (Joel Greenblatt) % of 38.05% is 87.9% 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 NSW and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 20.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NSW's current ROC (Joel Greenblatt) % is 38.05%, which is near median its own 10-year median of 38.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NSW stock overvalued right now?
Based on GuruFocus' analysis, NSW (TSE:9739) is currently considered Modestly Undervalued. The stock's GF Value™ is 円3,028.89, compared to a current price of 円2,529.00 — trading 16.5% below its estimated fair value. The current ROC (Joel Greenblatt) % is 38.05%, which is near median its 10-year median of 38.98 and 87.9% above the Software industry median of 20.25. NSW's overall GF Score™ is 79/100 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 NSW (TSE:9739), the current ROC (Joel Greenblatt) % is 38.05% 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 NSW (TSE:9739) Overvalued in 2026?
Based on GuruFocus' analysis, NSW stock appears to be undervalued.
The current stock price of 円2,529.00 is trading 16.5% below its estimated GF Value™ of 円3,028.89.
GuruFocus considers NSW to be Modestly Undervalued.
Key valuation signals for TSE:9739:
ROC (Joel Greenblatt) %: 38.05% (near median its 10-year median of 38.98)
GF Value™: 円3,028.89 vs. price of 円2,529.00 (16.5% below fair value)
Industry Position: 87.9% above the Software median (#1243 of 2817)
No single metric tells the full story. See the TSE:9739 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NSW Inc provides IT and embedded solutions in Japan. It offers a business solution, including consulting, system design, development, maintenance, and operational services for manufacturing, distribution, finance, insurance, and government sectors. The company also provides a range of IT services, such as designing servers and networks for optimum system performance; developing secure environments; and operating and monitoring systems via its urban and suburban data centers. The group conducts four segments, which include Enterprise Solutions, Service Solutions, Embedded Solutions, and Device Solutions.
79GF Score
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