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Muthoot MicrofinBOM:544055 -4.07%56 3-Year ROIIC % is 3.10 as of Mar. 2026, which is at its 10-year median of 3.10. GuruFocus rates BOM:544055 with a GF Score™ of 56/100 and a GF Value™ of ₹178.21 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 395 Credit Services companies, Muthoot Microfin ranks better than 51.65% 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.
Muthoot Microfin's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 3.10%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Muthoot Microfin's 3-Year ROIIC % or its related term are showing as below:
BOM:544055's 3-Year ROIIC % is ranked better than 51.65% of 395
companies
in the Credit Services industry
Industry Median: 2.9
vs BOM:544055: 3.10
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.
Muthoot Microfin 3-Year ROIIC % Related Terms
Muthoot Microfin 3-Year ROIIC % Historical Data
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The historical data trend for Muthoot Microfin'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.
BOM:544055 vs V, MA, AXP: 3-Year ROIIC % Comparison
For the Credit Services subindustry, Muthoot Microfin'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.
Muthoot Microfin 3-Year ROIIC % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Muthoot Microfin's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Muthoot Microfin's 3-Year ROIIC % falls into.
* 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.
Muthoot Microfin (BOM:544055) has a 3-Year ROIIC % of 3.10 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Muthoot Microfin and its competitors. This is near median its historical median of 3.10. Over the past decade, Muthoot Microfin's 3-Year ROIIC % has ranged from 1.00 to 5.00. According to the industry distribution chart, Muthoot Microfin ranks #191 out of 395 companies in the Credit Services industry, placing it in the top 48.4%.
Is Muthoot Microfin's 3-Year ROIIC % too high?
Muthoot Microfin's current 3-Year ROIIC % of 3.10 is near median its 10-year median of 3.10. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 5.00. The Credit Services industry median 3-Year ROIIC % is 2.90. Muthoot Microfin's value of 3.10 is 6.9% above this industry median. Based on the distribution chart, Muthoot Microfin ranks #191 out of 395 companies in the Credit Services industry, which is above the industry midpoint. Overall, Muthoot Microfin has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Muthoot Microfin's 3-Year ROIIC % compare to V and MA?
According to the Credit Services industry distribution chart, Muthoot Microfin ranks #191 out of 395 companies for 3-Year ROIIC %. This puts Muthoot Microfin in the upper half of its industry. The industry median 3-Year ROIIC % is 2.90. Muthoot Microfin's value of 3.10 is 6.9% above this benchmark. Historically, Muthoot Microfin's own 3-Year ROIIC % has ranged from 1.00 to 5.00 over the past decade. While the company's 10-year median is 3.10 vs. the industry median of 2.90, Muthoot Microfin 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 Credit Services company?
The median 3-Year ROIIC % among Credit Services companies is 2.90, based on 395 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. Muthoot Microfin's current 3-Year ROIIC % of 3.10 is 6.9% 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 Muthoot Microfin and its competitors. For the Credit Services industry, the median 3-Year ROIIC % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muthoot Microfin's current 3-Year ROIIC % is 3.10, which is near median its own 10-year median of 3.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muthoot Microfin stock overvalued right now?
Based on GuruFocus' analysis, Muthoot Microfin (BOM:544055) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹178.21, compared to a current price of ₹204.90 — trading 15% above its estimated fair value. The current 3-Year ROIIC % is 3.10, which is near median its 10-year median of 3.10 and 6.9% above the Credit Services industry median of 2.90. Muthoot Microfin's overall GF Score™ is 56/100 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 Muthoot Microfin (BOM:544055), the current 3-Year ROIIC % is 3.10 as of Mar. 2026. 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 Muthoot Microfin (BOM:544055) Overvalued in 2026?
Based on GuruFocus' analysis, Muthoot Microfin stock appears to be overvalued.
The current stock price of ₹204.90 is trading 15% above its estimated GF Value™ of ₹178.21.
GuruFocus considers Muthoot Microfin to be Modestly Overvalued.
Key valuation signals for BOM:544055:
3-Year ROIIC %: 3.10 (near median its 10-year median of 3.10)
GF Value™: ₹178.21 vs. price of ₹204.90 (15% above fair value)
Industry Position: 6.9% above the Credit Services median (#191 of 395)
No single metric tells the full story. See the BOM:544055 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muthoot Microfin Ltd is a microfinance institution providing micro-loans to women customers with a focus on rural regions of India. The company offers loan products such as group loans for livelihood solutions such as income generating loans, Pragathi loans, and individual loans; life betterment solutions including mobile phones loans, solar lighting product loans, and household appliances product loans; health and hygiene loans such as sanitation improvement loans; and secured loans in the form of gold loans and Muthoot Small & Growing Business loans.
56GF Score
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