Castle BiosciencesCSTL -2.47%73 3-Year ROIIC % is 68.02 as of Dec. 2025. GuruFocus rates CSTL with a GF Score™ of 73/100 and a GF Value™ of $29.18 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 204 Medical Diagnostics & Research companies, Castle Biosciences ranks better than 78.43% 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.
Castle Biosciences's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 68.02%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Castle Biosciences's 3-Year ROIIC % or its related term are showing as below:
CSTL's 3-Year ROIIC % is ranked better than 78.43% of 204
companies
in the Medical Diagnostics & Research industry
Industry Median: 0.125
vs CSTL: 68.02
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.
Castle Biosciences 3-Year ROIIC % Related Terms
Castle Biosciences 3-Year ROIIC % Historical Data
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The historical data trend for Castle Biosciences'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.
CSTL vs FLGT, MYGN, OPK: 3-Year ROIIC % Comparison
For the Diagnostics & Research subindustry, Castle Biosciences'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.
Castle Biosciences 3-Year ROIIC % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Castle Biosciences's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Castle Biosciences'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.
Castle Biosciences (CSTL) has a 3-Year ROIIC % of 68.02 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 Castle Biosciences and its competitors. According to the industry distribution chart, Castle Biosciences ranks #44 out of 204 companies in the Medical Diagnostics & Research industry, placing it in the top 21.6%.
Is Castle Biosciences' 3-Year ROIIC % too high?
Castle Biosciences' current 3-Year ROIIC % is 68.02. The Medical Diagnostics & Research industry median 3-Year ROIIC % is 0.13. Castle Biosciences' value of 68.02 is 54316% above this industry median. Based on the distribution chart, Castle Biosciences ranks #44 out of 204 companies in the Medical Diagnostics & Research industry, which is in the top quartile — a strong position relative to peers. Overall, Castle Biosciences has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Castle Biosciences' 3-Year ROIIC % compare to FLGT and MYGN?
According to the Medical Diagnostics & Research industry distribution chart, Castle Biosciences ranks #44 out of 204 companies for 3-Year ROIIC %. This places Castle Biosciences in the top 22% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 0.13. Castle Biosciences' value of 68.02 is 54316% 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 Medical Diagnostics & Research company?
The median 3-Year ROIIC % among Medical Diagnostics & Research companies is 0.13, based on 204 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. Castle Biosciences's current 3-Year ROIIC % of 68.02 is 54316% 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 Castle Biosciences and its competitors. For the Medical Diagnostics & Research industry, the median 3-Year ROIIC % is 0.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Castle Biosciences's current 3-Year ROIIC % is 68.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Castle Biosciences stock overvalued right now?
Based on GuruFocus' analysis, Castle Biosciences (CSTL) is currently considered Modestly Undervalued. The stock's GF Value™ is $29.18, compared to a current price of $24.11 — trading 17.4% below its estimated fair value. The current 3-Year ROIIC % is 68.02 and 54316% above the Medical Diagnostics & Research industry median of 0.13. Castle Biosciences' overall GF Score™ is 73/100 with 4 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 Castle Biosciences (CSTL), the current 3-Year ROIIC % is 68.02 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 Castle Biosciences (CSTL) Overvalued in 2026?
Based on GuruFocus' analysis, Castle Biosciences stock appears to be undervalued.
The current stock price of $24.11 is trading 17.4% below its estimated GF Value™ of $29.18.
GuruFocus considers Castle Biosciences to be Modestly Undervalued.
Key valuation signals for CSTL:
3-Year ROIIC %: 68.02
GF Value™: $29.18 vs. price of $24.11 (17.4% below fair value)
Industry Position: 54316% above the Medical Diagnostics & Research median (#44 of 204)
No single metric tells the full story. See the CSTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Castle Biosciences Inc is a molecular diagnostics company. The group provides test solutions for the diagnosis and treatment of dermatologic cancers, Barrett's esophagus (BE), and uveal melanoma. The product portfolio of the company includes DecisionDx-Melanoma, a risk stratification gene expression profile (GEP) test; DecisionDx-SCC, a risk stratification test for cutaneous squamous cell carcinoma; MyPath Melanoma, a diagnostic GEP test for use in patients with difficult-to-diagnose melanocytic lesions; and TissueCypher, a test to predict future development of progression of high-grade dysplasia and/or esophageal cancer. The company derives revenues through the delivery of test reports for its molecular diagnostic tests.
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