Zip CoASX:ZIP +4.53%63 10-Year ROIIC % is 0.00 as of Jun. 2025. GuruFocus rates ASX:ZIP with a GF Score™ of 63/100 and a GF Value™ of A$2.08 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 342 Credit Services companies, Zip Co ranks worse than 292397.37% 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.
Zip Co does not have enough data to calculate 10-Year ROIIC %.
Zip Co (ASX:ZIP) 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.
Zip Co 10-Year ROIIC % Related Terms
Zip Co 10-Year ROIIC % Historical Data
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The historical data trend for Zip Co'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.
For the Credit Services subindustry, Zip Co'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.
Zip Co 10-Year ROIIC % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Zip Co's 10-Year ROIIC % falls into.
Zip Co'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**
=
( 268.555 (Jun. 2025) - -2.133 (Jun. 2015) )
/
( 3024.859 (Jun. 2025) - 0 (Jun. 2015) )
=
270.688
/
=
N/A%***
* 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.
Zip Co (ASX:ZIP) has a 10-Year ROIIC % of 0.00 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 Zip Co and its competitors. According to the industry distribution chart, Zip Co ranks #999999 out of 342 companies in the Credit Services industry.
Is Zip Co's 10-Year ROIIC % too high?
Zip Co's current 10-Year ROIIC % is 0.00. Based on the distribution chart, Zip Co ranks #999999 out of 342 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Zip Co has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zip Co's 10-Year ROIIC % compare to V and MA?
According to the Credit Services industry distribution chart, Zip Co ranks #999999 out of 342 companies for 10-Year ROIIC %. This places Zip Co in the lower half of its industry. The industry median 10-Year ROIIC % is 2.76. 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 Credit Services company?
The median 10-Year ROIIC % among Credit Services companies is 2.76, based on 342 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. 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 Zip Co and its competitors. For the Credit Services industry, the median 10-Year ROIIC % is 2.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zip Co's current 10-Year ROIIC % is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zip Co stock overvalued right now?
Based on GuruFocus' analysis, Zip Co (ASX:ZIP) is currently considered Significantly Overvalued. The stock's GF Value™ is A$2.08, compared to a current price of A$3.23 — trading 55.3% above its estimated fair value. The current 10-Year ROIIC % is 0.00. Zip Co's overall GF Score™ is 63/100 with 7 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 Zip Co (ASX:ZIP), the current 10-Year ROIIC % is 0.00 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 Zip Co (ASX:ZIP) Overvalued in 2026?
Based on GuruFocus' analysis, Zip Co stock appears to be overvalued.
The current stock price of A$3.23 is trading 55.3% above its estimated GF Value™ of A$2.08.
GuruFocus considers Zip Co to be Significantly Overvalued.
Key valuation signals for ASX:ZIP:
10-Year ROIIC %: 0.00
GF Value™: A$2.08 vs. price of A$3.23 (55.3% above fair value)
No single metric tells the full story. See the ASX:ZIP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zip is a credit provider operating two segments: Australia and New Zealand, and the US. Founded in Australia in 2013, it has over 6 million active customers and partners with over 85,000 merchants. In Australia, Zip positions itself as a credit card alternative, with several revolving credit products. Customers can carry the balance over time with a monthly fee and set their own repayment schedule. The US and New Zealand offering is a far more vanilla BNPL offering: Pay-in-4 in New Zealand and Pay-in-Z in the US, where customers pay back in fixed instalments. The US segment is built on the 2020 acquisition of QuadPay and has recently become Zip's largest and fastest-growing segment.
63GF Score
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