Australian Rare EarthsASX:AR3 36 3-Year ROIIC % is 11.41 as of Jun. 2025, which is at its 10-year median of 11.41. GuruFocus rates ASX:AR3 with a GF Score™ of 36/100. The stock has 2 warning signs investors should review. Among 2,301 Metals & Mining companies, Australian Rare Earths ranks better than 69.01% 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.
Australian Rare Earths's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 11.41%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Australian Rare Earths's 3-Year ROIIC % or its related term are showing as below:
ASX:AR3's 3-Year ROIIC % is ranked better than 69.01% of 2301
companies
in the Metals & Mining industry
Industry Median: -2.54
vs ASX:AR3: 11.41
Australian Rare Earths (ASX:AR3) 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.
Australian Rare Earths 3-Year ROIIC % Related Terms
Australian Rare Earths 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Australian Rare Earths'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.
Australian Rare Earths 3-Year ROIIC % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Australian Rare Earths'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.
Australian Rare Earths 3-Year ROIIC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Australian Rare Earths's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Australian Rare Earths's 3-Year ROIIC % falls into.
Australian Rare Earths's 3-Year ROIIC % for the quarter that ended in Jun. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -3.701 (Jun. 2025) - -5.376 (Jun. 2022) )
/
( 20.234 (Jun. 2025) - 5.548 (Jun. 2022) )
=
1.675
/
14.686
=
11.41%***
* 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 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.
Australian Rare Earths (ASX:AR3) has a 3-Year ROIIC % of 11.41 as of Jun. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Australian Rare Earths and its competitors. This is near median its historical median of 11.41. Over the past decade, Australian Rare Earths' 3-Year ROIIC % has ranged from 11.41 to 11.41. According to the industry distribution chart, Australian Rare Earths ranks #713 out of 2301 companies in the Metals & Mining industry, placing it in the top 31%.
Is Australian Rare Earths' 3-Year ROIIC % too high?
Australian Rare Earths' current 3-Year ROIIC % of 11.41 is near median its 10-year median of 11.41. Over the past 10 years, this metric has ranged from a low of 11.41 to a high of 11.41. Based on the distribution chart, Australian Rare Earths ranks #713 out of 2301 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Australian Rare Earths has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does Australian Rare Earths' 3-Year ROIIC % compare to competitors?
According to the Metals & Mining industry distribution chart, Australian Rare Earths ranks #713 out of 2301 companies for 3-Year ROIIC %. This puts Australian Rare Earths in the upper half of its industry. Historically, Australian Rare Earths' own 3-Year ROIIC % has ranged from 11.41 to 11.41 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 Metals & Mining company?
A good 3-Year ROIIC % depends on the Metals & Mining 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 Australian Rare Earths and its competitors. Australian Rare Earths's current 3-Year ROIIC % is 11.41, which is near median its own 10-year median of 11.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Rare Earths stock overvalued right now?
Australian Rare Earths (ASX:AR3) has a current 3-Year ROIIC % of 11.41. The current 3-Year ROIIC % is 11.41, which is near median its 10-year median of 11.41. Australian Rare Earths' overall GF Score™ is 36/100 with 2 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 Australian Rare Earths (ASX:AR3), the current 3-Year ROIIC % is 11.41 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.
Australian Rare Earths Ltd is engaged in rare earth exploration and development. Its Koppamurra Project is a frontier ionic clay, rare earth opportunity in South Australia and Victoria.
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