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. TOWA Pharmaceutical Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -12.24%.
The historical rank and industry rank for TOWA Pharmaceutical Co's ROC (Joel Greenblatt) % or its related term are showing as below:
TWAPF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.63 Med: 9.96 Max: 16.18
Current: 4.84
During the past 13 years, TOWA Pharmaceutical Co's highest ROC (Joel Greenblatt) % was 16.18%. The lowest was 2.63%. And the median was 9.96%.
TWAPF's ROC (Joel Greenblatt) % is ranked worse than 61.35% of 978
companies
in the Drug Manufacturers industry
Industry Median: 11.45
vs TWAPF: 4.84
TOWA Pharmaceutical Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -11.70% per year.
TOWA Pharmaceutical Co (OTCPK:TWAPF) 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.
TOWA Pharmaceutical Co ROC (Joel Greenblatt) % Related Terms
TOWA Pharmaceutical Co ROC (Joel Greenblatt) % Historical Data
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The historical data trend for TOWA Pharmaceutical 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.
TOWA Pharmaceutical Co ROC (Joel Greenblatt) % Chart
TWAPF vs ZTS, UTHR: ROC (Joel Greenblatt) % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, TOWA Pharmaceutical 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.
TOWA Pharmaceutical Co ROC (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, TOWA Pharmaceutical Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where TOWA Pharmaceutical Co's ROC (Joel Greenblatt) % falls into.
TOWA Pharmaceutical 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 four times the quarterly (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 -12.24% mean?
TOWA Pharmaceutical Co (TWAPF) has a ROC (Joel Greenblatt) % of -12.24% 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 TOWA Pharmaceutical Co and its competitors. Over the past decade, TOWA Pharmaceutical Co's ROC (Joel Greenblatt) % has ranged from 2.63 to 16.18. According to the industry distribution chart, TOWA Pharmaceutical Co ranks #600 out of 978 companies in the Drug Manufacturers industry, placing it in the top 61.3%.
Is TOWA Pharmaceutical Co's ROC (Joel Greenblatt) % too high?
TOWA Pharmaceutical Co's current ROC (Joel Greenblatt) % is -12.24%. Over the past 10 years, this metric has ranged from a low of 2.63 to a high of 16.18. Based on the distribution chart, TOWA Pharmaceutical Co ranks #600 out of 978 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, TOWA Pharmaceutical Co has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does TOWA Pharmaceutical Co's ROC (Joel Greenblatt) % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, TOWA Pharmaceutical Co ranks #600 out of 978 companies for ROC (Joel Greenblatt) %. This places TOWA Pharmaceutical Co in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 11.45. Historically, TOWA Pharmaceutical Co's own ROC (Joel Greenblatt) % has ranged from 2.63 to 16.18 over the past decade. 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 Drug Manufacturers company?
The median ROC (Joel Greenblatt) % among Drug Manufacturers companies is 11.45, based on 978 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. 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 TOWA Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median ROC (Joel Greenblatt) % is 11.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TOWA Pharmaceutical Co's current ROC (Joel Greenblatt) % is -12.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TOWA Pharmaceutical Co stock overvalued right now?
TOWA Pharmaceutical Co (TWAPF) has a current ROC (Joel Greenblatt) % of -12.24%. The stock's GF Value™ is $14.43, compared to a current price of $26.00 — trading 80.2% above its estimated fair value. The current ROC (Joel Greenblatt) % is -12.24%. TOWA Pharmaceutical Co's overall GF Score™ is 87/100 with 7 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 TOWA Pharmaceutical Co (TWAPF), the current ROC (Joel Greenblatt) % is -12.24% 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 TOWA Pharmaceutical Co (TWAPF) Overvalued in 2026?
Based on GuruFocus' analysis, TOWA Pharmaceutical Co stock appears to be overvalued.
The current stock price of $26.00 is trading 80.2% above its estimated GF Value™ of $14.43.
Key valuation signals for TWAPF:
ROC (Joel Greenblatt) %: -12.24%
GF Value™: $14.43 vs. price of $26.00 (80.2% above fair value)
No single metric tells the full story. See the TWAPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TOWA Pharmaceutical Co Ltd is a Japan based pharmaceutical company engaged in research and development, production, and marketing of generic drugs. It also provides drug consulting services for patients and their families and relatives. It organizes academic seminars for medical professionals and posts articles in journals. It participates in training for pharmacists. The company has three main plants in operation namely Osaka plant, Okayama plant, and Yamagata plant. Towa has offers more than 500 drugs to meet the diverse therapeutic requirements including lifestyle related diseases such as hypertension and diabetes, digestive system diseases, nervous system diseases and allergic diseases, vitamins and antibiotics.
87GF Score
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