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ReadyTech HoldingsASX:RDY +1.56%74 3-Year ROIIC % is 0.12 as of Jun. 2025, which is 96% below its 10-year median of 3.25. GuruFocus rates ASX:RDY with a GF Score™ of 74/100 and a GF Value™ of A$3.37 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,621 Software companies, ReadyTech Holdings ranks worse than 58.72% 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.
ReadyTech Holdings's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 0.12%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for ReadyTech Holdings's 3-Year ROIIC % or its related term are showing as below:
ASX:RDY's 3-Year ROIIC % is ranked worse than 58.72% of 2621
companies
in the Software industry
Industry Median: 5.33
vs ASX:RDY: 0.12
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.
ReadyTech Holdings 3-Year ROIIC % Related Terms
ReadyTech Holdings 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for ReadyTech Holdings'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:RDY vs QH, SHOP, UBER: 3-Year ROIIC % Comparison
For the Software - Application subindustry, ReadyTech Holdings'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.
ReadyTech Holdings 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, ReadyTech Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where ReadyTech Holdings's 3-Year ROIIC % falls into.
ReadyTech Holdings'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**
=
( 8.384 (Jun. 2025) - 8.3313345 (Jun. 2022) )
/
( 249.415 (Jun. 2025) - 205.259 (Jun. 2022) )
=
0.052665500000002
/
44.156
=
0.12%***
* 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.
ReadyTech Holdings (ASX:RDY) has a 3-Year ROIIC % of 0.12 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 ReadyTech Holdings and its competitors. This is 96% below median its historical median of 3.25. Over the past decade, ReadyTech Holdings' 3-Year ROIIC % has ranged from 0.12 to 6.31. According to the industry distribution chart, ReadyTech Holdings ranks #1539 out of 2621 companies in the Software industry, placing it in the top 58.7%.
Is ReadyTech Holdings' 3-Year ROIIC % too high?
ReadyTech Holdings' current 3-Year ROIIC % of 0.12 is 96% below median its 10-year median of 3.25. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 6.31. The Software industry median 3-Year ROIIC % is 5.33. ReadyTech Holdings' value of 0.12 is 97.7% below this industry median. Based on the distribution chart, ReadyTech Holdings ranks #1539 out of 2621 companies in the Software industry, which is below the industry midpoint. Overall, ReadyTech Holdings has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ReadyTech Holdings' 3-Year ROIIC % compare to QH and SHOP?
According to the Software industry distribution chart, ReadyTech Holdings ranks #1539 out of 2621 companies for 3-Year ROIIC %. This places ReadyTech Holdings in the lower half of its industry. The industry median 3-Year ROIIC % is 5.33. ReadyTech Holdings' value of 0.12 is 97.7% below this benchmark. Historically, ReadyTech Holdings' own 3-Year ROIIC % has ranged from 0.12 to 6.31 over the past decade. While the company's 10-year median is 3.25 vs. the industry median of 5.33, ReadyTech Holdings has consistently been below 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 Software company?
The median 3-Year ROIIC % among Software companies is 5.33, based on 2,621 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. ReadyTech Holdings's current 3-Year ROIIC % of 0.12 is 97.7% below 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 ReadyTech Holdings 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. ReadyTech Holdings's current 3-Year ROIIC % is 0.12, which is 96% below median its own 10-year median of 3.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ReadyTech Holdings stock overvalued right now?
Based on GuruFocus' analysis, ReadyTech Holdings (ASX:RDY) is currently considered Possible Value Trap. The stock's GF Value™ is A$3.37, compared to a current price of A$1.63 — trading 51.8% below its estimated fair value. The current 3-Year ROIIC % is 0.12, which is 96% below median its 10-year median of 3.25 and 97.7% below the Software industry median of 5.33. ReadyTech Holdings' overall GF Score™ is 74/100 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 ReadyTech Holdings (ASX:RDY), the current 3-Year ROIIC % is 0.12 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 ReadyTech Holdings (ASX:RDY) Overvalued in 2026?
Based on GuruFocus' analysis, ReadyTech Holdings stock appears to be undervalued.
The current stock price of A$1.63 is trading 51.8% below its estimated GF Value™ of A$3.37.
GuruFocus considers ReadyTech Holdings to be Possible Value Trap.
Key valuation signals for ASX:RDY:
3-Year ROIIC %: 0.12 (96% below median its 10-year median of 3.25)
GF Value™: A$3.37 vs. price of A$1.63 (51.8% below fair value)
Industry Position: 97.7% below the Software median (#1539 of 2621)
No single metric tells the full story. See the ASX:RDY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ReadyTech Holdings Ltd is a provider of people management software for educators, employers, and facilitators of career transitions. Its products are JR Plus, A2E, HR3, ePayroll, JR Gov, Aussiepay, and others. The company's operating segments include Education and Work pathways, Workforce Solutions, and Government and Justice. It generates maximum revenue from the Government and Justice. The education segment mainly provides products and services to tertiary education providers. Its Workforce segment provides products and services to a mid-sized company across various industries. The Government division provides government and justice case management software as a service solution to local governments, state governments, and justice departments.
74GF Score
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