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Faes FarmaXMAD:FAE -1.03%93 ROC (Joel Greenblatt) % is 11.51% as of Dec. 2025, which is 71% below its 10-year median of 39.92. GuruFocus rates XMAD:FAE with a GF Score™ of 93/100 and a GF Value™ of €5.18 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 981 Drug Manufacturers companies, Faes Farma ranks better than 61.37% 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. Faes Farma's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 11.51%.
The historical rank and industry rank for Faes Farma's ROC (Joel Greenblatt) % or its related term are showing as below:
XMAD:FAE'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 17.8 Med: 39.92 Max: 55.59
Current: 18.4
During the past 13 years, Faes Farma's highest ROC (Joel Greenblatt) % was 55.59%. The lowest was 17.80%. And the median was 39.92%.
XMAD:FAE's ROC (Joel Greenblatt) % is ranked better than 61.37% of 981
companies
in the Drug Manufacturers industry
Industry Median: 11.53
vs XMAD:FAE: 18.40
Faes Farma's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -15.60% 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.
Faes Farma ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Faes Farma'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.
XMAD:FAE vs ZTS, UTHR, VTRS: ROC (Joel Greenblatt) % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Faes Farma'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.
Faes Farma ROC (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Faes Farma's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Faes Farma'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 (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 11.51% mean?
Faes Farma (XMAD:FAE) has a ROC (Joel Greenblatt) % of 11.51% 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 Faes Farma and its competitors. This is 71% below median its historical median of 39.92. Over the past decade, Faes Farma's ROC (Joel Greenblatt) % has ranged from 17.80 to 55.59. According to the industry distribution chart, Faes Farma ranks #379 out of 981 companies in the Drug Manufacturers industry, placing it in the top 38.6%.
Is Faes Farma's ROC (Joel Greenblatt) % too high?
Faes Farma's current ROC (Joel Greenblatt) % of 11.51% is 71% below median its 10-year median of 39.92. Over the past 10 years, this metric has ranged from a low of 17.80 to a high of 55.59. The Drug Manufacturers industry median ROC (Joel Greenblatt) % is 11.53. Faes Farma's value of 11.51% is 0.2% below this industry median. Based on the distribution chart, Faes Farma ranks #379 out of 981 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Faes Farma has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Faes Farma's ROC (Joel Greenblatt) % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Faes Farma ranks #379 out of 981 companies for ROC (Joel Greenblatt) %. This puts Faes Farma in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 11.53. Faes Farma's value of 11.51% is 0.2% below this benchmark. Historically, Faes Farma's own ROC (Joel Greenblatt) % has ranged from 17.80 to 55.59 over the past decade. While the company's 10-year median is 39.92 vs. the industry median of 11.53, Faes Farma 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 Drug Manufacturers company?
The median ROC (Joel Greenblatt) % among Drug Manufacturers companies is 11.53, based on 981 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. Faes Farma's current ROC (Joel Greenblatt) % of 11.51% is 0.2% 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 Faes Farma and its competitors. For the Drug Manufacturers industry, the median ROC (Joel Greenblatt) % is 11.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Faes Farma's current ROC (Joel Greenblatt) % is 11.51%, which is 71% below median its own 10-year median of 39.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Faes Farma stock overvalued right now?
Based on GuruFocus' analysis, Faes Farma (XMAD:FAE) is currently considered Modestly Undervalued. The stock's GF Value™ is €5.18, compared to a current price of €4.35 — trading 16.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 11.51%, which is 71% below median its 10-year median of 39.92 and 0.2% below the Drug Manufacturers industry median of 11.53. Faes Farma's overall GF Score™ is 93/100 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 Faes Farma (XMAD:FAE), the current ROC (Joel Greenblatt) % is 11.51% 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 Faes Farma (XMAD:FAE) Overvalued in 2026?
Based on GuruFocus' analysis, Faes Farma stock appears to be undervalued.
The current stock price of €4.35 is trading 16.1% below its estimated GF Value™ of €5.18.
GuruFocus considers Faes Farma to be Modestly Undervalued.
Key valuation signals for XMAD:FAE:
ROC (Joel Greenblatt) %: 11.51% (71% below median its 10-year median of 39.92)
GF Value™: €5.18 vs. price of €4.35 (16.1% below fair value)
Industry Position: 0.2% below the Drug Manufacturers median (#379 of 981)
No single metric tells the full story. See the XMAD:FAE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Faes Farma SA purpose is manufacturing and selling all kinds of chemical and pharmaceutical products, foodstuffs, cosmetics, dietetics and medicinal plants, as well as acquiring, purchasing, disposing of, investing in, holding, using, managing, administering, marketing and leasing corporations, securities and real estate, patents, trademarks and registered brands and equity interests. It is mainly engaged in the manufacture and sale of pharmaceutical products, as well as in the manufacture and sale of animal nutrition and health products. Its segments are Pharmaceutical and healthcare specialities, Animal nutrition and health, and Other segments. It generates majority of revenue from Pharmaceutical and healthcare specialities. It operates mainly in domestic and international markets.
93GF Score
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ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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