Balfour BeattyBAFBF 78 3-Year ROIIC % is -3.51 as of Dec. 2025. GuruFocus rates BAFBF with a GF Score™ of 78/100 and a GF Value™ of $7.82 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,681 Construction companies, Balfour Beatty ranks worse than 66.92% 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.
Balfour Beatty's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -3.51%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Balfour Beatty's 3-Year ROIIC % or its related term are showing as below:
BAFBF's 3-Year ROIIC % is ranked worse than 66.92% of 1681
companies
in the Construction industry
Industry Median: 4.63
vs BAFBF: -3.51
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.
Balfour Beatty 3-Year ROIIC % Related Terms
Balfour Beatty 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Balfour Beatty'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.
For the Engineering & Construction subindustry, Balfour Beatty'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.
Balfour Beatty 3-Year ROIIC % vs Construction Industry
For the Construction industry and Industrials sector, Balfour Beatty's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Balfour Beatty's 3-Year ROIIC % falls into.
Balfour Beatty's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 205.6923429 (Dec. 2025) - 207.065 (Dec. 2022) )
/
( 6650.603 (Dec. 2025) - 5483.557 (Dec. 2022) )
=
-1.3726571
/
1167.046
=
-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.
Balfour Beatty (BAFBF) has a 3-Year ROIIC % of -3.51 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Balfour Beatty and its competitors. According to the industry distribution chart, Balfour Beatty ranks #1125 out of 1681 companies in the Construction industry, placing it in the top 66.9%.
Is Balfour Beatty's 3-Year ROIIC % too high?
Balfour Beatty's current 3-Year ROIIC % is -3.51. Based on the distribution chart, Balfour Beatty ranks #1125 out of 1681 companies in the Construction industry, which is below the industry midpoint. Overall, Balfour Beatty has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Balfour Beatty's 3-Year ROIIC % compare to PWR and FIX?
According to the Construction industry distribution chart, Balfour Beatty ranks #1125 out of 1681 companies for 3-Year ROIIC %. This places Balfour Beatty in the lower half of its industry. The industry median 3-Year ROIIC % is 4.63. 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 Construction company?
The median 3-Year ROIIC % among Construction companies is 4.63, based on 1,681 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 Balfour Beatty and its competitors. For the Construction industry, the median 3-Year ROIIC % is 4.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Balfour Beatty's current 3-Year ROIIC % is -3.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Balfour Beatty stock overvalued right now?
Based on GuruFocus' analysis, Balfour Beatty (BAFBF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.82, compared to a current price of $11.20 — trading 43.2% above its estimated fair value. The current 3-Year ROIIC % is -3.51. Balfour Beatty's overall GF Score™ is 78/100 with 7 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 Balfour Beatty (BAFBF), the current 3-Year ROIIC % is -3.51 as of Dec. 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 Balfour Beatty (BAFBF) Overvalued in 2026?
Based on GuruFocus' analysis, Balfour Beatty stock appears to be overvalued.
The current stock price of $11.20 is trading 43.2% above its estimated GF Value™ of $7.82.
GuruFocus considers Balfour Beatty to be Significantly Overvalued.
Key valuation signals for BAFBF:
3-Year ROIIC %: -3.51
GF Value™: $7.82 vs. price of $11.20 (43.2% above fair value)
No single metric tells the full story. See the BAFBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Balfour Beatty PLC finances builds, and maintains infrastructure projects. It finances, develops, builds, maintains, and operates the increasingly complex and critical infrastructure that supports national economies and delivers projects at the heart of local communities. It operates three business segments: Construction services (majority of total revenue), Support services, and Infrastructure investments. It will invest directly in infrastructure assets also invests in real estate-type assets, in particular private residential and student accommodation assets. The majority of sales are derived from the United Kingdom and the United States.
78GF Score
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