Coles GroupFRA:2OF -4.83%73 3-Year ROIIC % is 24.51 as of Jun. 2025, which is 343% above its 10-year median of 5.53. GuruFocus rates FRA:2OF with a GF Score™ of 73/100 and a GF Value™ of €12.22 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 293 Retail - Defensive companies, Coles Group ranks better than 79.52% 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.
Coles Group's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 24.51%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Coles Group's 3-Year ROIIC % or its related term are showing as below:
FRA:2OF's 3-Year ROIIC % is ranked better than 79.52% of 293
companies
in the Retail - Defensive industry
Industry Median: 5.95
vs FRA:2OF: 24.51
Coles Group (FRA:2OF) 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.
Coles Group 3-Year ROIIC % Related Terms
Coles Group 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Coles Group'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.
FRA:2OF vs KR, SFM, ACI: 3-Year ROIIC % Comparison
For the Grocery Stores subindustry, Coles Group'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.
Coles Group 3-Year ROIIC % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Coles Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Coles Group'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.
Coles Group (FRA:2OF) has a 3-Year ROIIC % of 24.51 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 Coles Group and its competitors. This is 343% above median its historical median of 5.53. Over the past decade, Coles Group's 3-Year ROIIC % has ranged from 1.73 to 24.51. According to the industry distribution chart, Coles Group ranks #60 out of 293 companies in the Retail - Defensive industry, placing it in the top 20.5%.
Is Coles Group's 3-Year ROIIC % too high?
Coles Group's current 3-Year ROIIC % of 24.51 is 343% above median its 10-year median of 5.53. Over the past 10 years, this metric has ranged from a low of 1.73 to a high of 24.51. The Retail - Defensive industry median 3-Year ROIIC % is 5.95. Coles Group's value of 24.51 is 311.9% above this industry median. Based on the distribution chart, Coles Group ranks #60 out of 293 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Coles Group has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Coles Group's 3-Year ROIIC % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Coles Group ranks #60 out of 293 companies for 3-Year ROIIC %. This places Coles Group in the top 21% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 5.95. Coles Group's value of 24.51 is 311.9% above this benchmark. Historically, Coles Group's own 3-Year ROIIC % has ranged from 1.73 to 24.51 over the past decade. While the company's 10-year median is 5.53 vs. the industry median of 5.95, Coles Group 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 Retail - Defensive company?
The median 3-Year ROIIC % among Retail - Defensive companies is 5.95, based on 293 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. Coles Group's current 3-Year ROIIC % of 24.51 is 311.9% 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 Coles Group and its competitors. For the Retail - Defensive industry, the median 3-Year ROIIC % is 5.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coles Group's current 3-Year ROIIC % is 24.51, which is 343% above median its own 10-year median of 5.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coles Group stock overvalued right now?
Based on GuruFocus' analysis, Coles Group (FRA:2OF) is currently considered Modestly Overvalued. The stock's GF Value™ is €12.22, compared to a current price of €13.80 — trading 12.9% above its estimated fair value. The current 3-Year ROIIC % is 24.51, which is 343% above median its 10-year median of 5.53 and 311.9% above the Retail - Defensive industry median of 5.95. Coles Group's overall GF Score™ is 73/100 with 8 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 Coles Group (FRA:2OF), the current 3-Year ROIIC % is 24.51 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 Coles Group (FRA:2OF) Overvalued in 2026?
Based on GuruFocus' analysis, Coles Group stock appears to be overvalued.
The current stock price of €13.80 is trading 12.9% above its estimated GF Value™ of €12.22.
GuruFocus considers Coles Group to be Modestly Overvalued.
Key valuation signals for FRA:2OF:
3-Year ROIIC %: 24.51 (343% above median its 10-year median of 5.53)
GF Value™: €12.22 vs. price of €13.80 (12.9% above fair value)
Industry Position: 311.9% above the Retail - Defensive median (#60 of 293)
No single metric tells the full story. See the FRA:2OF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coles is one of Australia's largest retailers, operating the second-largest supermarket chain behind market leader Woolworths, and the country's second-largest liquor chain. The group has an extensive store network of over 1,800 stores and roughly 80% of Australians live within a 10-minute drive from a Coles store. The retailer employs some 120,000 people, who process some 20 million individual customer transactions a week. This compares with Woolworths processing about 30 million customer transactions per week from Australia's population of 27 million.
73GF Score
Get the complete analysis for FRA:2OF
3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:2OF has been successfully added to your 
