Adairs (ASX:ADH) 10-Year ROIIC % : 5.41% (As of Jun. 2025)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ASX:ADH Adairs Ltd ASX:ADH
81 GF Score
Price A$1.42
GF Value A$2.12
Valuation Possible Value Trap
! 8 Warning Signs
View Full Analysis

What is Adairs 10-Year ROIIC %?

Adairs ASX:ADH -4.07% 81 10-Year ROIIC % is 5.41 as of Jun. 2025. GuruFocus rates ASX:ADH with a GF Score™ of 81/100 and a GF Value™ of A$2.12 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 917 Retail - Cyclical companies, Adairs ranks better than 53.76% on this metric.

10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year. Adairs's 10-Year ROIIC % for the quarter that ended in Jun. 2025 was 5.41%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Adairs's 10-Year ROIIC % or its related term are showing as below:

ASX:ADH's 10-Year ROIIC % is ranked better than
53.76% of 917 companies
in the Retail - Cyclical industry
Industry Median: 3.93 vs ASX:ADH: 5.41

Adairs  (ASX:ADH) 10-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Adairs 10-Year ROIIC % Related Terms


Adairs 10-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for Adairs's 10-Year ROIIC % 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.

Adairs 10-Year ROIIC % Chart

Adairs Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
10-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 5.41

Adairs Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
10-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 5.41 0.00

ASX:ADH vs CASY, WSM, DKS: 10-Year ROIIC % Comparison

For the Specialty Retail subindustry, Adairs's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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.


Adairs 10-Year ROIIC % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Adairs's 10-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Adairs's 10-Year ROIIC % falls into.


ASX:ADH
81GF Score
Adairs Ltd ASX:ADH
10-Year ROIIC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Adairs 10-Year ROIIC % Calculation

Adairs's 10-Year ROIIC % for the quarter that ended in Jun. 2025 is calculated as:

10-Year ROIIC %=10-Year Incremental Net Operating Profit After Taxes (NOPAT)**/10-Year Incremental Invested Capital**
=( 38.3716197 (Jun. 2025) - 11.6435556 (Jun. 2015) )/( 622.833 (Jun. 2025) - 129.108 (Jun. 2015) )
=26.7280641/493.725
=5.41%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

Frequently Asked Questions Learn more about 10-Year ROIIC % →
What does a 10-Year ROIIC % of 5.41 mean?
Adairs (ASX:ADH) has a 10-Year ROIIC % of 5.41 as of Jun. 2025. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Adairs and its competitors. According to the industry distribution chart, Adairs ranks #424 out of 917 companies in the Retail - Cyclical industry, placing it in the top 46.2%.
Is Adairs' 10-Year ROIIC % too high?
Adairs' current 10-Year ROIIC % is 5.41. The Retail - Cyclical industry median 10-Year ROIIC % is 3.93. Adairs' value of 5.41 is 37.7% above this industry median. Based on the distribution chart, Adairs ranks #424 out of 917 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Adairs has a GF Score™ of 81/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Adairs' 10-Year ROIIC % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Adairs ranks #424 out of 917 companies for 10-Year ROIIC %. This puts Adairs in the upper half of its industry. The industry median 10-Year ROIIC % is 3.93. Adairs' value of 5.41 is 37.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year ROIIC % for a Retail - Cyclical company?
The median 10-Year ROIIC % among Retail - Cyclical companies is 3.93, based on 917 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Adairs's current 10-Year ROIIC % of 5.41 is 37.7% 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 10-Year ROIIC % mean?
A high 10-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Adairs and its competitors. For the Retail - Cyclical industry, the median 10-Year ROIIC % is 3.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adairs's current 10-Year ROIIC % is 5.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adairs stock overvalued right now?
Based on GuruFocus' analysis, Adairs (ASX:ADH) is currently considered Possible Value Trap. The stock's GF Value™ is A$2.12, compared to a current price of A$1.42 — trading 33.3% below its estimated fair value. The current 10-Year ROIIC % is 5.41 and 37.7% above the Retail - Cyclical industry median of 3.93. Adairs' overall GF Score™ is 81/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year ROIIC % calculated?
10-Year ROIIC % is calculated from a company's financial statements. For Adairs (ASX:ADH), the current 10-Year ROIIC % is 5.41 as of Jun. 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 Adairs (ASX:ADH) Overvalued in 2026?

Based on GuruFocus' analysis, Adairs stock appears to be undervalued. The current stock price of A$1.42 is trading 33.3% below its estimated GF Value™ of A$2.12. GuruFocus considers Adairs to be Possible Value Trap.

Key valuation signals for ASX:ADH:

  • 10-Year ROIIC %: 5.41
  • GF Value™: A$2.12 vs. price of A$1.42 (33.3% below fair value)
  • GF Score™: 81/100 with 8 warning signs
  • Industry Position: 37.7% above the Retail - Cyclical median (#424 of 917)

No single metric tells the full story. See the ASX:ADH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Adairs Business Description

Other Exchanges 1FQ:Germany
Address 1 Middle Road, Level 9, Chadstone, VIC, AUS, 3148
Adairs Ltd is engaged in the retailing of homewares and home furnishings in Australia and New Zealand. The company's product range includes categories, such as quilt covers and coverlets, sheets, cotton flannelette, pillowcases, quilts, pillows, mattress protectors, pillow protectors, blankets, nursery products, valances, bed wraps, bedspreads, and slippers, kids beach products and towels, cushions, throws, gifts and toys, wall arts, rugs, laundry, and home care products, chairs, bedheads, storage and shelves, ottomans and bench seats, and tables, as well as pots and plants, baskets, throws, home decor, and fragrance products, mirrors, lighting products, and tableware and pets products. Its operating segments are Adairs, Focus on Furniture, and Mocka.
81GF Score

Get the complete analysis for ASX:ADH

10-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$1.42
Price
A$2.12
GF Value