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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.
Arlo Technologies's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 141.91%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Arlo Technologies's 3-Year ROIIC % or its related term are showing as below:
FRA:2VI's 3-Year ROIIC % is ranked better than 95.07% of 1684
companies
in the Construction industry
Industry Median: 4.715
vs FRA:2VI: 141.91
Arlo Technologies (FRA:2VI) 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.
Arlo Technologies 3-Year ROIIC % Related Terms
Arlo Technologies 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Arlo Technologies'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:2VI vs NPKI, ROCK, APOG: 3-Year ROIIC % Comparison
For the Building Products & Equipment subindustry, Arlo Technologies'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.
Arlo Technologies 3-Year ROIIC % vs Construction Industry
For the Construction industry and Industrials sector, Arlo Technologies's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Arlo Technologies's 3-Year ROIIC % falls into.
Arlo Technologies'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**
=
( 4.9397495 (Dec. 2025) - -53.694 (Dec. 2022) )
/
( 94.301 (Dec. 2025) - 62.555 (Dec. 2022) )
=
58.6337495
/
31.746
=
184.70%***
* 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.
Arlo Technologies (FRA:2VI) has a 3-Year ROIIC % of 141.91 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 Arlo Technologies and its competitors. According to the industry distribution chart, Arlo Technologies ranks #83 out of 1684 companies in the Construction industry, placing it in the top 4.9%.
Is Arlo Technologies' 3-Year ROIIC % too high?
Arlo Technologies' current 3-Year ROIIC % is 141.91. The Construction industry median 3-Year ROIIC % is 4.72. Arlo Technologies' value of 141.91 is 2909.8% above this industry median. Based on the distribution chart, Arlo Technologies ranks #83 out of 1684 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Arlo Technologies has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arlo Technologies' 3-Year ROIIC % compare to NPKI and ROCK?
According to the Construction industry distribution chart, Arlo Technologies ranks #83 out of 1684 companies for 3-Year ROIIC %. This places Arlo Technologies in the top 5% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 4.72. Arlo Technologies' value of 141.91 is 2909.8% 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 Construction company?
The median 3-Year ROIIC % among Construction companies is 4.72, based on 1,684 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. Arlo Technologies's current 3-Year ROIIC % of 141.91 is 2909.8% 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 Arlo Technologies and its competitors. For the Construction industry, the median 3-Year ROIIC % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arlo Technologies's current 3-Year ROIIC % is 141.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arlo Technologies stock overvalued right now?
Based on GuruFocus' analysis, Arlo Technologies (FRA:2VI) is currently considered Modestly Overvalued. The stock's GF Value™ is €9.42, compared to a current price of €10.97 — trading 16.5% above its estimated fair value. The current 3-Year ROIIC % is 141.91 and 2909.8% above the Construction industry median of 4.72. Arlo Technologies' overall GF Score™ is 61/100 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 Arlo Technologies (FRA:2VI), the current 3-Year ROIIC % is 141.91 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 Arlo Technologies (FRA:2VI) Overvalued in 2026?
Based on GuruFocus' analysis, Arlo Technologies stock appears to be overvalued.
The current stock price of €10.97 is trading 16.5% above its estimated GF Value™ of €9.42.
GuruFocus considers Arlo Technologies to be Modestly Overvalued.
Key valuation signals for FRA:2VI:
3-Year ROIIC %: 141.91
GF Value™: €9.42 vs. price of €10.97 (16.5% above fair value)
Industry Position: 2909.8% above the Construction median (#83 of 1684)
No single metric tells the full story. See the FRA:2VI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arlo Technologies Inc is engaged in the provision of security and video monitoring solutions for homes and businesses. Its cloud-based platform provides users with visibility, insight, and a powerful means to help protect and connect in real-time with the people and things that matter, from any location with a Wi-Fi or cellular connection. The company offers subscription services such as Arlo Secure, Arlo Total Security, and Arlo Safe, and several categories of smart security devices, including smart Wi-Fi and LTE-enabled cameras, video doorbells, floodlight cameras, and home security systems. Geographically, the company generates a majority of its revenue from the United States, followed by Spain, Sweden, and other countries.
61GF Score
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3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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