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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.
Magic Software Enterprises's 3-Year ROIIC % for the quarter that ended in Dec. 2024 was 24.17%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Magic Software Enterprises's 3-Year ROIIC % or its related term are showing as below:
FRA:MGK's 3-Year ROIIC % is not ranked
in the Software industry.
Industry Median: 5.085
vs FRA:MGK: 24.17
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.
Magic Software Enterprises 3-Year ROIIC % Related Terms
Magic Software Enterprises 3-Year ROIIC % Historical Data
* 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:MGK vs IBM, ACN, FISV: 3-Year ROIIC % Comparison
For the Information Technology Services subindustry, Magic Software Enterprises'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.
Magic Software Enterprises 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Magic Software Enterprises's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Magic Software Enterprises'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.
Magic Software Enterprises (FRA:MGK) has a 3-Year ROIIC % of 24.17 as of Dec. 2024. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Magic Software Enterprises and its competitors. This is 54% above median its historical median of 15.72. Over the past decade, Magic Software Enterprises' 3-Year ROIIC % has ranged from 1.80 to 26.79.
Is Magic Software Enterprises' 3-Year ROIIC % too high?
Magic Software Enterprises' current 3-Year ROIIC % of 24.17 is 54% above median its 10-year median of 15.72. Over the past 10 years, this metric has ranged from a low of 1.80 to a high of 26.79. The Software industry median 3-Year ROIIC % is 5.09. Magic Software Enterprises' value of 24.17 is 375.3% above this industry median. Overall, Magic Software Enterprises has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Magic Software Enterprises' 3-Year ROIIC % compare to IBM and ACN?
Magic Software Enterprises' 3-Year ROIIC % of 24.17 can be compared against companies in the Software industry. The industry median 3-Year ROIIC % is 5.09. Magic Software Enterprises' value of 24.17 is 375.3% above this benchmark. Historically, Magic Software Enterprises' own 3-Year ROIIC % has ranged from 1.80 to 26.79 over the past decade. While the company's 10-year median is 15.72 vs. the industry median of 5.09, Magic Software Enterprises 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 Software company?
The median 3-Year ROIIC % among Software companies is 5.09, based on 2,624 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. Magic Software Enterprises's current 3-Year ROIIC % of 24.17 is 375.3% 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 Magic Software Enterprises and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magic Software Enterprises's current 3-Year ROIIC % is 24.17, which is 54% above median its own 10-year median of 15.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magic Software Enterprises stock overvalued right now?
Magic Software Enterprises (FRA:MGK) has a current 3-Year ROIIC % of 24.17. The stock's GF Value™ is €12.26, compared to a current price of €16.10 — trading 31.3% above its estimated fair value. The current 3-Year ROIIC % is 24.17, which is 54% above median its 10-year median of 15.72 and 375.3% above the Software industry median of 5.09. Magic Software Enterprises' overall GF Score™ is 90/100 with 1 warning sign 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 Magic Software Enterprises (FRA:MGK), the current 3-Year ROIIC % is 24.17 as of Dec. 2024. 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 Magic Software Enterprises (FRA:MGK) Overvalued in 2026?
Based on GuruFocus' analysis, Magic Software Enterprises stock appears to be overvalued.
The current stock price of €16.10 is trading 31.3% above its estimated GF Value™ of €12.26.
Key valuation signals for FRA:MGK:
3-Year ROIIC %: 24.17 (54% above median its 10-year median of 15.72)
GF Value™: €12.26 vs. price of €16.10 (31.3% above fair value)
Industry Position: 375.3% above the Software median
No single metric tells the full story. See the FRA:MGK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magic Software Enterprises Ltd is a software development company. The company's operating segment includes Software Services and IT Professional Services. The company generates maximum revenue from the IT Professional Services segment. IT Professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services. Geographically, it derives a majority of revenue from the United States and also has a presence in Israel, Europe, Japan, and Other countries.
90GF Score
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