ReadCloudASX:RCL 3-Year ROIIC % is 423.72 as of Sep. 2025. The stock has 3 warning signs investors should review. Among 2,627 Software companies, ReadCloud ranks better than 96.76% 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.
ReadCloud's 3-Year ROIIC % for the quarter that ended in Sep. 2025 was 423.72%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for ReadCloud's 3-Year ROIIC % or its related term are showing as below:
ASX:RCL's 3-Year ROIIC % is ranked better than 96.76% of 2627
companies
in the Software industry
Industry Median: 5.33
vs ASX:RCL: 423.72
ReadCloud (ASX:RCL) 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.
ReadCloud 3-Year ROIIC % Related Terms
ReadCloud 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for ReadCloud'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:RCL vs UBER, SHOP, CRM: 3-Year ROIIC % Comparison
For the Software - Application subindustry, ReadCloud'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.
ReadCloud 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, ReadCloud's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where ReadCloud's 3-Year ROIIC % falls into.
ReadCloud's 3-Year ROIIC % for the quarter that ended in Sep. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -0.687204 (Sep. 2025) - -2.327 (Sep. 2022) )
/
( 9.928 (Sep. 2025) - 9.541 (Sep. 2022) )
=
1.639796
/
0.387
=
423.72%***
* 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.
ReadCloud (ASX:RCL) has a 3-Year ROIIC % of 423.72 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 ReadCloud and its competitors. According to the industry distribution chart, ReadCloud ranks #85 out of 2627 companies in the Software industry, placing it in the top 3.2%.
Is ReadCloud's 3-Year ROIIC % too high?
ReadCloud's current 3-Year ROIIC % is 423.72. The Software industry median 3-Year ROIIC % is 5.33. ReadCloud's value of 423.72 is 7849.7% above this industry median. Based on the distribution chart, ReadCloud ranks #85 out of 2627 companies in the Software industry, which is in the top quartile — a strong position relative to peers.
How does ReadCloud's 3-Year ROIIC % compare to UBER and SHOP?
According to the Software industry distribution chart, ReadCloud ranks #85 out of 2627 companies for 3-Year ROIIC %. This places ReadCloud in the top 3% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 5.33. ReadCloud's value of 423.72 is 7849.7% above this benchmark. 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 Software company?
The median 3-Year ROIIC % among Software companies is 5.33, based on 2,627 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. ReadCloud's current 3-Year ROIIC % of 423.72 is 7849.7% 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 ReadCloud and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ReadCloud's current 3-Year ROIIC % is 423.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ReadCloud stock overvalued right now?
Based on GuruFocus' analysis, ReadCloud (ASX:RCL) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.10, compared to a current price of A$0.07 — trading 34% below its estimated fair value. The current 3-Year ROIIC % is 423.72 and 7849.7% above the Software industry median of 5.33. 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 ReadCloud (ASX:RCL), the current 3-Year ROIIC % is 423.72 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.
ReadCloud Ltd is an education technology company that offers digital e-learning solutions to secondary schools. The firm operates in two segments: eBook solutions, which is the key revenue driver, and Vocational Education and Training (VET). It provides software solutions, including eBooks, to schools within Australia. In addition, it also provides digital VET course materials and services to schools through its subsidiary Australian Institute of Education and Training Unit Trust, PKY Media Pty Ltd and Ripponlea Institute Pty Ltd, which offers over 40 VET courses and services to schools across Australia.
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