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Homag Group AGFRA:HG1 59 3-Year ROIIC % is 3.34 as of Dec. 2025, which is 19% below its 10-year median of 4.11. GuruFocus rates FRA:HG1 with a GF Score™ of 59/100 and a GF Value™ of €26.53 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,931 Industrial Products companies, Homag Group AG ranks worse than 50.22% 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.
Homag Group AG's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 3.34%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Homag Group AG's 3-Year ROIIC % or its related term are showing as below:
FRA:HG1's 3-Year ROIIC % is ranked worse than 50.22% of 2931
companies
in the Industrial Products industry
Industry Median: 3.45
vs FRA:HG1: 3.34
Homag Group AG (FRA:HG1) 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.
Homag Group AG 3-Year ROIIC % Related Terms
Homag Group AG 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Homag Group AG'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:HG1 vs GEV, ETN, PH: 3-Year ROIIC % Comparison
For the Specialty Industrial Machinery subindustry, Homag Group AG'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.
Homag Group AG 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Homag Group AG's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Homag Group AG's 3-Year ROIIC % falls into.
Homag Group AG'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**
=
( -0.8373901 (Dec. 2025) - 1.982143 (Dec. 2022) )
/
( 219.021 (Dec. 2025) - 303.517 (Dec. 2022) )
=
-2.8195331
/
-84.496
=
3.34%***
* 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.
Homag Group AG (FRA:HG1) has a 3-Year ROIIC % of 3.34 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 Homag Group AG and its competitors. This is 19% below median its historical median of 4.11. According to the industry distribution chart, Homag Group AG ranks #1472 out of 2931 companies in the Industrial Products industry, placing it in the top 50.2%.
Is Homag Group AG's 3-Year ROIIC % too high?
Homag Group AG's current 3-Year ROIIC % of 3.34 is 19% below median its 10-year median of 4.11. The Industrial Products industry median 3-Year ROIIC % is 3.45. Homag Group AG's value of 3.34 is 3.2% below this industry median. Based on the distribution chart, Homag Group AG ranks #1472 out of 2931 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Homag Group AG has a GF Score™ of 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Homag Group AG's 3-Year ROIIC % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Homag Group AG ranks #1472 out of 2931 companies for 3-Year ROIIC %. This places Homag Group AG in the lower half of its industry. The industry median 3-Year ROIIC % is 3.45. Homag Group AG's value of 3.34 is 3.2% below this benchmark. While the company's 10-year median is 4.11 vs. the industry median of 3.45, Homag Group AG has consistently been below 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 an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.45, based on 2,931 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. Homag Group AG's current 3-Year ROIIC % of 3.34 is 3.2% below 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 Homag Group AG and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Homag Group AG's current 3-Year ROIIC % is 3.34, which is 19% below median its own 10-year median of 4.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Homag Group AG stock overvalued right now?
Based on GuruFocus' analysis, Homag Group AG (FRA:HG1) is currently considered Fairly Valued. The stock's GF Value™ is €26.53, compared to a current price of €25.00 — trading 5.8% below its estimated fair value. The current 3-Year ROIIC % is 3.34, which is 19% below median its 10-year median of 4.11 and 3.2% below the Industrial Products industry median of 3.45. Homag Group AG's overall GF Score™ is 59/100 with 3 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 Homag Group AG (FRA:HG1), the current 3-Year ROIIC % is 3.34 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 Homag Group AG (FRA:HG1) Overvalued in 2026?
Based on GuruFocus' analysis, Homag Group AG stock appears to be undervalued.
The current stock price of €25.00 is trading 5.8% below its estimated GF Value™ of €26.53.
GuruFocus considers Homag Group AG to be Fairly Valued.
Key valuation signals for FRA:HG1:
3-Year ROIIC %: 3.34 (19% below median its 10-year median of 4.11)
GF Value™: €26.53 vs. price of €25.00 (5.8% below fair value)
Industry Position: 3.2% below the Industrial Products median (#1472 of 2931)
No single metric tells the full story. See the FRA:HG1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Homag Group AG is a German-based company that manufactures machines and equipment for the woodworking industry. The company operates its business in four segments namely Industry segment, Cabinet shops, Sales & Service segment, and others. Maximum revenue comes from an industry segment which includes solutions for industrial companies based on plants, machines, information, control technology, and woodworking processes. The company carries its operations in the European region including Central, Western and Eastern Europe, American region including North and South America, Asia Pacific and Central Europe. The majority of the company's revenue comes from Central Europe.
59GF Score
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