AVITA MedicalASX:AVH -2.44%60 1-Year ROIIC % is 26.62 as of Mar. 2026. GuruFocus rates ASX:AVH with a GF Score™ of 60/100 and a GF Value™ of A$3.11 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 824 Medical Devices & Instruments companies, AVITA Medical ranks better than 70.15% on this metric.
1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year.
AVITA Medical's 1-Year ROIIC % for the quarter that ended in Mar. 2026 was 26.62%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for AVITA Medical's 1-Year ROIIC % or its related term are showing as below:
ASX:AVH's 1-Year ROIIC % is ranked better than 70.15% of 824
companies
in the Medical Devices & Instruments industry
Industry Median: 0.38
vs ASX:AVH: 26.62
AVITA Medical (ASX:AVH) 1-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.
AVITA Medical 1-Year ROIIC % Related Terms
AVITA Medical 1-Year ROIIC % Historical Data
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The historical data trend for AVITA Medical's 1-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.
ASX:AVH vs MXCT, HYPR, ZOMDF: 1-Year ROIIC % Comparison
For the Medical Devices subindustry, AVITA Medical's 1-Year ROIIC %, along with its competitors' market caps and 1-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.
AVITA Medical 1-Year ROIIC % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, AVITA Medical's 1-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where AVITA Medical's 1-Year ROIIC % falls into.
AVITA Medical's 1-Year ROIIC % for the quarter that ended in Mar. 2026 is calculated as:
1-Year ROIIC %
=
1-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
1-Year Incremental Invested Capital
=
( -59.1697 (Mar. 2026) - -78.3773 (Mar. 2025) )
/
( 101.856 (Mar. 2026) - 43.676 (Mar. 2025) )
=
19.2076
/
58.18
=
33.01%***
* 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.
** TTM data of NOPAT and Invested Capital was used to calculate 1-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.
AVITA Medical (ASX:AVH) has a 1-Year ROIIC % of 26.62 as of Mar. 2026. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on AVITA Medical and its competitors. According to the industry distribution chart, AVITA Medical ranks #246 out of 824 companies in the Medical Devices & Instruments industry, placing it in the top 29.9%.
Is AVITA Medical's 1-Year ROIIC % too high?
AVITA Medical's current 1-Year ROIIC % is 26.62. The Medical Devices & Instruments industry median 1-Year ROIIC % is 0.38. AVITA Medical's value of 26.62 is 6905.3% above this industry median. Based on the distribution chart, AVITA Medical ranks #246 out of 824 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, AVITA Medical has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AVITA Medical's 1-Year ROIIC % compare to MXCT and HYPR?
According to the Medical Devices & Instruments industry distribution chart, AVITA Medical ranks #246 out of 824 companies for 1-Year ROIIC %. This puts AVITA Medical in the upper half of its industry. The industry median 1-Year ROIIC % is 0.38. AVITA Medical's value of 26.62 is 6905.3% 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 1-Year ROIIC % for a Medical Devices & Instruments company?
The median 1-Year ROIIC % among Medical Devices & Instruments companies is 0.38, based on 824 companies in the industry. Companies in the top quartile (top 25%) have a 1-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 1-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AVITA Medical's current 1-Year ROIIC % of 26.62 is 6905.3% 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 1-Year ROIIC % mean?
A high 1-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on AVITA Medical and its competitors. For the Medical Devices & Instruments industry, the median 1-Year ROIIC % is 0.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AVITA Medical's current 1-Year ROIIC % is 26.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AVITA Medical stock overvalued right now?
Based on GuruFocus' analysis, AVITA Medical (ASX:AVH) is currently considered Possible Value Trap. The stock's GF Value™ is A$3.11, compared to a current price of A$1.40 — trading 55% below its estimated fair value. The current 1-Year ROIIC % is 26.62 and 6905.3% above the Medical Devices & Instruments industry median of 0.38. AVITA Medical's overall GF Score™ is 60/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year ROIIC % calculated?
1-Year ROIIC % is calculated from a company's financial statements. For AVITA Medical (ASX:AVH), the current 1-Year ROIIC % is 26.62 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 AVITA Medical (ASX:AVH) Overvalued in 2026?
Based on GuruFocus' analysis, AVITA Medical stock appears to be undervalued.
The current stock price of A$1.40 is trading 55% below its estimated GF Value™ of A$3.11.
GuruFocus considers AVITA Medical to be Possible Value Trap.
Key valuation signals for ASX:AVH:
1-Year ROIIC %: 26.62
GF Value™: A$3.11 vs. price of A$1.40 (55% below fair value)
Industry Position: 6905.3% above the Medical Devices & Instruments median (#246 of 824)
No single metric tells the full story. See the ASX:AVH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avita is largely a single product company. Its RECELL system is an innovative burn treatment device which creates Spray-on Skin from a small skin sample within 30 minutes, thus avoiding or reducing the need for skin grafts. It's approved for the treatment of adult and paediatric patients in the US and an expanded indication for soft-tissue reconstruction. It is currently used in most of the 140 US burn centers. Despite having product approval in Australia, Canada, and China, Avita is not actively marketing in those territories and focussing instead on the US region, although international sales, particularly in Japan, are growing. Avita is domiciled, and has its primary listing, in the US.
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