gategroup Holding AG (XSWX:GATE) ROC (Joel Greenblatt) %: 10.19% (As of Dec. 2019) — 62% Below Median


What is gategroup Holding AG ROC (Joel Greenblatt) %?

gategroup Holding AG XSWX:GATE ROC (Joel Greenblatt) % is 10.19% as of Dec. 2019, which is 62% below its 10-year median of 26.48. The stock has 8 warning signs investors should review.

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. gategroup Holding AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2019 was 10.19%.

The historical rank and industry rank for gategroup Holding AG's ROC (Joel Greenblatt) % or its related term are showing as below:

XSWX:GATE' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -1.63   Med: 26.48   Max: 46.35
Current: 10.22

During the past 12 years, gategroup Holding AG's highest ROC (Joel Greenblatt) % was 46.35%. The lowest was -1.63%. And the median was 26.48%.

XSWX:GATE's ROC (Joel Greenblatt) % is not ranked
in the Transportation industry.
Industry Median: 11.695 vs XSWX:GATE: 10.22

gategroup Holding AG's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.

gategroup Holding AG  (XSWX:GATE) 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.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.

gategroup Holding AG ROC (Joel Greenblatt) % Related Terms

gategroup Holding AG ROC (Joel Greenblatt) % Historical Data

* Premium members only.

The historical data trend for gategroup Holding AG'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.

gategroup Holding AG ROC (Joel Greenblatt) % Chart

gategroup Holding AG Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.65 27.60 45.80 24.72 10.19

gategroup Holding AG Semi-Annual Data
Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.65 27.60 45.80 24.72 10.19

XSWX:GATE vs CAAP, AAWW: ROC (Joel Greenblatt) % Comparison

For the Airports & Air Services subindustry, gategroup Holding AG'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.

gategroup Holding AG ROC (Joel Greenblatt) % vs Transportation Industry

For the Transportation industry and Industrials sector, gategroup Holding AG's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where gategroup Holding AG's ROC (Joel Greenblatt) % falls into.


gategroup Holding AG 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:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

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.

Working Capital(Q: Dec. 2018 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(451.8 + 168.5 + 267) - (448.8 + 0 + 634.5)
=-196

Working Capital(Q: Dec. 2019 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(431.7 + 144.5 + 247.1) - (417.8 + 0 + 802.3)
=-396.8

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of gategroup Holding AG for the quarter that ended in Dec. 2019 can be restated as:

ROC (Joel Greenblatt) %(Q: Dec. 2019 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2018  Q: Dec. 2019
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=81.1/( ( (559.7 + max(-196, 0)) + (1032.3 + max(-396.8, 0)) )/ 2 )
=81.1/( ( 559.7 + 1032.3 )/ 2 )
=81.1/796
=10.19 %

Note: The EBIT data used here is one times the annual (Dec. 2019) 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 10.19% mean?
gategroup Holding AG (XSWX:GATE) has a ROC (Joel Greenblatt) % of 10.19% as of Dec. 2019. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on gategroup Holding AG and its competitors. This is 62% below median its historical median of 26.48.
Is gategroup Holding AG's ROC (Joel Greenblatt) % too high?
gategroup Holding AG's current ROC (Joel Greenblatt) % of 10.19% is 62% below median its 10-year median of 26.48. The Transportation industry median ROC (Joel Greenblatt) % is 11.70. gategroup Holding AG's value of 10.19% is 12.9% below this industry median.
How does gategroup Holding AG's ROC (Joel Greenblatt) % compare to CAAP and AAWW?
gategroup Holding AG's ROC (Joel Greenblatt) % of 10.19% can be compared against companies in the Transportation industry. The industry median ROC (Joel Greenblatt) % is 11.70. gategroup Holding AG's value of 10.19% is 12.9% below this benchmark. While the company's 10-year median is 26.48 vs. the industry median of 11.70, gategroup Holding AG 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 Transportation company?
The median ROC (Joel Greenblatt) % among Transportation companies is 11.70, based on 996 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. gategroup Holding AG's current ROC (Joel Greenblatt) % of 10.19% is 12.9% 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 gategroup Holding AG and its competitors. For the Transportation industry, the median ROC (Joel Greenblatt) % is 11.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. gategroup Holding AG's current ROC (Joel Greenblatt) % is 10.19%, which is 62% below median its own 10-year median of 26.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is gategroup Holding AG stock overvalued right now?
gategroup Holding AG (XSWX:GATE) has a current ROC (Joel Greenblatt) % of 10.19%. The current ROC (Joel Greenblatt) % is 10.19%, which is 62% below median its 10-year median of 26.48 and 12.9% below the Transportation industry median of 11.70. 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 gategroup Holding AG (XSWX:GATE), the current ROC (Joel Greenblatt) % is 10.19% as of Dec. 2019. 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.

gategroup Holding AG Business Description

Address Sagereistrasse 20, Glattbrugg, CHE, CH-8152
gategroup Holding AG is engaged in the operation of airline catering and provision of related services in Switzerland. It provides airline catering, retail and technology services, onboard service equipment, and supply chain and logistics solutions. Its segments include EMEA, North America, Latin America and Asia Pacific regions.