Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Lenovo GroupFRA:LHL -1.77%72 3-Year ROIIC % is 12.54 as of Mar. 2026, which is 8% above its 10-year median of 11.60. GuruFocus rates FRA:LHL with a GF Score™ of 72/100 and a GF Value™ of €1.29 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,370 Hardware companies, Lenovo Group ranks better than 63.8% 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.
Lenovo Group's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 12.54%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Lenovo Group's 3-Year ROIIC % or its related term are showing as below:
FRA:LHL's 3-Year ROIIC % is ranked better than 63.8% of 2370
companies
in the Hardware industry
Industry Median: 2.345
vs FRA:LHL: 12.54
Lenovo Group (FRA:LHL) 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.
Lenovo Group 3-Year ROIIC % Related Terms
Lenovo Group 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Lenovo 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:LHL vs DELL, ANET, SNDK: 3-Year ROIIC % Comparison
For the Computer Hardware subindustry, Lenovo 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.
Lenovo Group 3-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, Lenovo Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Lenovo 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.
Lenovo Group (FRA:LHL) has a 3-Year ROIIC % of 12.54 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 Lenovo Group and its competitors. This is near median its historical median of 11.60. According to the industry distribution chart, Lenovo Group ranks #858 out of 2370 companies in the Hardware industry, placing it in the top 36.2%.
Is Lenovo Group's 3-Year ROIIC % too high?
Lenovo Group's current 3-Year ROIIC % of 12.54 is near median its 10-year median of 11.60. The Hardware industry median 3-Year ROIIC % is 2.35. Lenovo Group's value of 12.54 is 434.8% above this industry median. Based on the distribution chart, Lenovo Group ranks #858 out of 2370 companies in the Hardware industry, which is above the industry midpoint. Overall, Lenovo Group has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lenovo Group's 3-Year ROIIC % compare to DELL and ANET?
According to the Hardware industry distribution chart, Lenovo Group ranks #858 out of 2370 companies for 3-Year ROIIC %. This puts Lenovo Group in the upper half of its industry. The industry median 3-Year ROIIC % is 2.35. Lenovo Group's value of 12.54 is 434.8% above this benchmark. While the company's 10-year median is 11.60 vs. the industry median of 2.35, Lenovo 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 Hardware company?
The median 3-Year ROIIC % among Hardware companies is 2.35, based on 2,370 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. Lenovo Group's current 3-Year ROIIC % of 12.54 is 434.8% 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 Lenovo Group and its competitors. For the Hardware industry, the median 3-Year ROIIC % is 2.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lenovo Group's current 3-Year ROIIC % is 12.54, which is near median its own 10-year median of 11.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lenovo Group stock overvalued right now?
Based on GuruFocus' analysis, Lenovo Group (FRA:LHL) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.29, compared to a current price of €2.50 — trading 93.8% above its estimated fair value. The current 3-Year ROIIC % is 12.54, which is near median its 10-year median of 11.60 and 434.8% above the Hardware industry median of 2.35. Lenovo Group's overall GF Score™ is 72/100 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 Lenovo Group (FRA:LHL), the current 3-Year ROIIC % is 12.54 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 Lenovo Group (FRA:LHL) Overvalued in 2026?
Based on GuruFocus' analysis, Lenovo Group stock appears to be overvalued.
The current stock price of €2.50 is trading 93.8% above its estimated GF Value™ of €1.29.
GuruFocus considers Lenovo Group to be Significantly Overvalued.
Key valuation signals for FRA:LHL:
3-Year ROIIC %: 12.54 (near median its 10-year median of 11.60)
GF Value™: €1.29 vs. price of €2.50 (93.8% above fair value)
Industry Position: 434.8% above the Hardware median (#858 of 2370)
No single metric tells the full story. See the FRA:LHL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lenovo is a global technology hardware company with a leading market share in personal computers. The firm has been actively growing its data center business, which primarily sells network servers to enterprise and hyperscale customers, as well as storage equipment through its mainland China joint venture with NetApp. Server-related revenue contribution has jumped to 23% of overall sales in fiscal 2025, from 6% in 2015.
72GF Score
Get the complete analysis for FRA:LHL
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:LHL has been successfully added to your 
