Astera LabsALAB -5.67%15 3-Year ROIIC % is 85.51 as of Dec. 2025, which is at its 10-year median of 85.51. GuruFocus rates ALAB with a GF Score™ of 15/100. The stock has 6 warning signs investors should review. Among 997 Semiconductors companies, Astera Labs ranks better than 87.66% on this metric.
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.
Astera Labs's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 85.51%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Astera Labs's 3-Year ROIIC % or its related term are showing as below:
ALAB's 3-Year ROIIC % is ranked better than 87.66% of 997
companies
in the Semiconductors industry
Industry Median: -0.2
vs ALAB: 85.51
Astera Labs (NAS:ALAB) 3-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.
Astera Labs 3-Year ROIIC % Related Terms
Astera Labs 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Astera Labs'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.
ALAB vs MPWR, NXPI, MCHP: 3-Year ROIIC % Comparison
For the Semiconductors subindustry, Astera Labs'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.
Astera Labs 3-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Astera Labs's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Astera Labs's 3-Year ROIIC % falls into.
Astera Labs's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 173.423 (Dec. 2025) - -60.194 (Dec. 2022) )
/
( 293.013 (Dec. 2025) - 19.808 (Dec. 2022) )
=
233.617
/
273.205
=
85.51%***
* 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.
Astera Labs (ALAB) has a 3-Year ROIIC % of 85.51 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Astera Labs and its competitors. This is near median its historical median of 85.51. Over the past decade, Astera Labs' 3-Year ROIIC % has ranged from 85.51 to 85.51. According to the industry distribution chart, Astera Labs ranks #123 out of 997 companies in the Semiconductors industry, placing it in the top 12.3%.
Is Astera Labs' 3-Year ROIIC % too high?
Astera Labs' current 3-Year ROIIC % of 85.51 is near median its 10-year median of 85.51. Over the past 10 years, this metric has ranged from a low of 85.51 to a high of 85.51. Based on the distribution chart, Astera Labs ranks #123 out of 997 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Astera Labs has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Astera Labs' 3-Year ROIIC % compare to MPWR and NXPI?
According to the Semiconductors industry distribution chart, Astera Labs ranks #123 out of 997 companies for 3-Year ROIIC %. This places Astera Labs in the top 12% of its industry — outperforming the majority of peers. Historically, Astera Labs' own 3-Year ROIIC % has ranged from 85.51 to 85.51 over the past decade. 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 Semiconductors company?
A good 3-Year ROIIC % depends on the Semiconductors industry context. 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 Astera Labs and its competitors. Astera Labs's current 3-Year ROIIC % is 85.51, which is near median its own 10-year median of 85.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Astera Labs stock overvalued right now?
Astera Labs (ALAB) has a current 3-Year ROIIC % of 85.51. The current 3-Year ROIIC % is 85.51, which is near median its 10-year median of 85.51. Astera Labs' overall GF Score™ is 15/100 with 6 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 Astera Labs (ALAB), the current 3-Year ROIIC % is 85.51 as of Dec. 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.
Astera Labs Inc designs and delivers semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform integrates semiconductor technology, microcontrollers, sensors, and software to enhance performance, scalability, and data management. The company offers products such as integrated circuits (ICs), boards, and modules, catering to hyperscalers and system OEMs. The company's solutions focus on data, network, and memory management in AI-driven platforms. Geographically, the company operates in Singapore, China, Taiwan, and United States, of which maximum revenue is derived from United States.
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