IPHASX:IPH +2.93%86 3-Year ROIIC % is 6.65 as of Jun. 2025, which is 24% above its 10-year median of 5.36. GuruFocus rates ASX:IPH with a GF Score™ of 86/100 and a GF Value™ of A$7.14 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,007 Business Services companies, IPH ranks better than 53.43% 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.
IPH's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 6.65%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for IPH's 3-Year ROIIC % or its related term are showing as below:
ASX:IPH's 3-Year ROIIC % is ranked better than 53.43% of 1007
companies
in the Business Services industry
Industry Median: 4.99
vs ASX:IPH: 6.65
IPH (ASX:IPH) 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.
IPH 3-Year ROIIC % Related Terms
IPH 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for IPH'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.
ASX:IPH vs CTAS, CPRT, ULS: 3-Year ROIIC % Comparison
For the Specialty Business Services subindustry, IPH'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.
IPH 3-Year ROIIC % vs Business Services Industry
For the Business Services industry and Industrials sector, IPH's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where IPH's 3-Year ROIIC % falls into.
IPH'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**
=
( 102.20749 (Jun. 2025) - 57.268557 (Jun. 2022) )
/
( 1246.5 (Jun. 2025) - 570.67 (Jun. 2022) )
=
44.938933
/
675.83
=
6.65%***
* 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.
IPH (ASX:IPH) has a 3-Year ROIIC % of 6.65 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 IPH and its competitors. This is 24% above median its historical median of 5.36. According to the industry distribution chart, IPH ranks #469 out of 1007 companies in the Business Services industry, placing it in the top 46.6%.
Is IPH's 3-Year ROIIC % too high?
IPH's current 3-Year ROIIC % of 6.65 is 24% above median its 10-year median of 5.36. The Business Services industry median 3-Year ROIIC % is 4.99. IPH's value of 6.65 is 33.3% above this industry median. Based on the distribution chart, IPH ranks #469 out of 1007 companies in the Business Services industry, which is above the industry midpoint. Overall, IPH has a GF Score™ of 86/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does IPH's 3-Year ROIIC % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, IPH ranks #469 out of 1007 companies for 3-Year ROIIC %. This puts IPH in the upper half of its industry. The industry median 3-Year ROIIC % is 4.99. IPH's value of 6.65 is 33.3% above this benchmark. While the company's 10-year median is 5.36 vs. the industry median of 4.99, IPH has consistently been above the industry average. 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 Business Services company?
The median 3-Year ROIIC % among Business Services companies is 4.99, based on 1,007 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. IPH's current 3-Year ROIIC % of 6.65 is 33.3% 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 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 IPH and its competitors. For the Business Services industry, the median 3-Year ROIIC % is 4.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPH's current 3-Year ROIIC % is 6.65, which is 24% above median its own 10-year median of 5.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IPH stock overvalued right now?
Based on GuruFocus' analysis, IPH (ASX:IPH) is currently considered Possible Value Trap. The stock's GF Value™ is A$7.14, compared to a current price of A$3.87 — trading 45.8% below its estimated fair value. The current 3-Year ROIIC % is 6.65, which is 24% above median its 10-year median of 5.36 and 33.3% above the Business Services industry median of 4.99. IPH's overall GF Score™ is 86/100 with 5 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 IPH (ASX:IPH), the current 3-Year ROIIC % is 6.65 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 IPH (ASX:IPH) Overvalued in 2026?
Based on GuruFocus' analysis, IPH stock appears to be undervalued.
The current stock price of A$3.87 is trading 45.8% below its estimated GF Value™ of A$7.14.
GuruFocus considers IPH to be Possible Value Trap.
Key valuation signals for ASX:IPH:
3-Year ROIIC %: 6.65 (24% above median its 10-year median of 5.36)
GF Value™: A$7.14 vs. price of A$3.87 (45.8% below fair value)
Industry Position: 33.3% above the Business Services median (#469 of 1007)
No single metric tells the full story. See the ASX:IPH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IPH provides intellectual property services through its subsidiaries: Spruson and Ferguson, Smart & Biggar, Robic, Pizzeys, Griffith Hack, Applied Marks, and AJ Park. These services include patent filing, prosecution, enforcement, management, design, trademarks, and more. The company's diverse client base comprises multinationals, public-sector research organizations, and local businesses across industries such as healthcare, finance, engineering, and technology. Revenue streams mainly consist of professional fees (fixed) and volume-based fees (linked to the quantity of work performed). About 70% of revenue is derived from pre-existing work in the system, while 30% comes from new patent applications.
86GF Score
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