3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Sally Beauty Holdings's 3-Year ROIIC % for the quarter that ended in Sep. 2025 was -11.56%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Sally Beauty Holdings's 3-Year ROIIC % or its related term are showing as below:
SBH's 3-Year ROIIC % is ranked worse than 73.89% of 1061
companies
in the Retail - Cyclical industry
Industry Median: 4.63
vs SBH: -11.56
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.
Sally Beauty Holdings 3-Year ROIIC % Related Terms
Sally Beauty Holdings 3-Year ROIIC % Historical Data
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The historical data trend for Sally Beauty Holdings's 3-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 Specialty Retail subindustry, Sally Beauty Holdings's 3-Year ROIIC %, along with its competitors' market caps and 3-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.
Sally Beauty Holdings 3-Year ROIIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Sally Beauty Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Sally Beauty Holdings's 3-Year ROIIC % falls into.
* 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 3-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.
Sally Beauty Holdings (SBH) has a 3-Year ROIIC % of -11.56 as of Sep. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Sally Beauty Holdings and its competitors. According to the industry distribution chart, Sally Beauty Holdings ranks #784 out of 1061 companies in the Retail - Cyclical industry, placing it in the top 73.9%.
Is Sally Beauty Holdings' 3-Year ROIIC % too high?
Sally Beauty Holdings' current 3-Year ROIIC % is -11.56. Based on the distribution chart, Sally Beauty Holdings ranks #784 out of 1061 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Sally Beauty Holdings has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sally Beauty Holdings' 3-Year ROIIC % compare to EYE and WINA?
According to the Retail - Cyclical industry distribution chart, Sally Beauty Holdings ranks #784 out of 1061 companies for 3-Year ROIIC %. This places Sally Beauty Holdings in the lower half of its industry. The industry median 3-Year ROIIC % is 4.63. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Retail - Cyclical company?
The median 3-Year ROIIC % among Retail - Cyclical companies is 4.63, based on 1,061 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Sally Beauty Holdings and its competitors. For the Retail - Cyclical industry, the median 3-Year ROIIC % is 4.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sally Beauty Holdings's current 3-Year ROIIC % is -11.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sally Beauty Holdings stock overvalued right now?
Based on GuruFocus' analysis, Sally Beauty Holdings (SBH) is currently considered Modestly Overvalued. The stock's GF Value™ is $12.80, compared to a current price of $14.46 — trading 13% above its estimated fair value. The current 3-Year ROIIC % is -11.56. Sally Beauty Holdings' overall GF Score™ is 75/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Sally Beauty Holdings (SBH), the current 3-Year ROIIC % is -11.56 as of Sep. 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 Sally Beauty Holdings (SBH) Overvalued in 2026?
Based on GuruFocus' analysis, Sally Beauty Holdings stock appears to be overvalued.
The current stock price of $14.46 is trading 13% above its estimated GF Value™ of $12.80.
GuruFocus considers Sally Beauty Holdings to be Modestly Overvalued.
Key valuation signals for SBH:
3-Year ROIIC %: -11.56
GF Value™: $12.80 vs. price of $14.46 (13% above fair value)
No single metric tells the full story. See the SBH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sally Beauty Holdings Inc is a professional beauty-products retailer based in the United States. The company operates throughout the United States, Puerto Rico, the United Kingdom, Belgium, Canada, Chile, Mexico, Peru, France, Ireland, Spain, Germany, Netherlands, and other geographical regions. The company operates through two business segments: Sally Beauty Supply and Beauty Systems Group. The products offered by the company include hair color and care, hair dryers and hair-styling appliances, nail care, skin care, and others.
75GF Score
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