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NextEd GroupASX:NXD -2.22% 3-Year ROIIC % is -16.99 as of Jun. 2025. The stock has 3 warning signs investors should review. Among 241 Education companies, NextEd Group ranks worse than 76.76% 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.
NextEd Group's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was -16.99%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for NextEd Group's 3-Year ROIIC % or its related term are showing as below:
ASX:NXD's 3-Year ROIIC % is ranked worse than 76.76% of 241
companies
in the Education industry
Industry Median: 2.7
vs ASX:NXD: -16.99
NextEd Group (ASX:NXD) 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.
NextEd Group 3-Year ROIIC % Related Terms
NextEd Group 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for NextEd Group'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:NXD vs EDU, TAL, LAUR: 3-Year ROIIC % Comparison
For the Education & Training Services subindustry, NextEd Group'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.
NextEd Group 3-Year ROIIC % vs Education Industry
For the Education industry and Consumer Defensive sector, NextEd Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where NextEd Group's 3-Year ROIIC % falls into.
NextEd Group'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**
=
( -3.0694384 (Jun. 2025) - -5.24697 (Jun. 2022) )
/
( 118.798 (Jun. 2025) - 131.613 (Jun. 2022) )
=
2.1775316
/
-12.815
=
-16.99%***
* 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.
NextEd Group (ASX:NXD) has a 3-Year ROIIC % of -16.99 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 NextEd Group and its competitors. According to the industry distribution chart, NextEd Group ranks #185 out of 241 companies in the Education industry, placing it in the top 76.8%.
Is NextEd Group's 3-Year ROIIC % too high?
NextEd Group's current 3-Year ROIIC % is -16.99. Based on the distribution chart, NextEd Group ranks #185 out of 241 companies in the Education industry, which is in the bottom quartile relative to peers.
How does NextEd Group's 3-Year ROIIC % compare to EDU and TAL?
According to the Education industry distribution chart, NextEd Group ranks #185 out of 241 companies for 3-Year ROIIC %. This places NextEd Group in the lower half of its industry. The industry median 3-Year ROIIC % is 2.70. 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 an Education company?
The median 3-Year ROIIC % among Education companies is 2.70, based on 241 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 NextEd Group and its competitors. For the Education industry, the median 3-Year ROIIC % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NextEd Group's current 3-Year ROIIC % is -16.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NextEd Group stock overvalued right now?
Based on GuruFocus' analysis, NextEd Group (ASX:NXD) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.23, compared to a current price of A$0.09 — trading 61.7% below its estimated fair value. The current 3-Year ROIIC % is -16.99. 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 NextEd Group (ASX:NXD), the current 3-Year ROIIC % is -16.99 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.
NextEd Group Ltd is engaged in the provision of vocational education and training solutions. It is a listed private education provider, delivering learning experiences through a national campus network across Adelaide, Brisbane, Gold Coast, Melbourne, Perth, and Sydney. NextEd offers courses across the English Language, Vocational, and Higher Education sectors, spanning industries including business, technology, design, hospitality, health, and community services. In addition, it provides education recruitment agency services to international students. The group's operating segments are: International, which generates maximum revenue, Technology and Design, Domestic Vocational, and Go Study. Geographically, it generates maximum revenue from Australia, followed by Europe and South America.
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