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.
Powell IndustriesFRA:PW2 -1.38%74 3-Year ROIIC % is 67.35 as of Sep. 2025, which is 16% above its 10-year median of 57.90. GuruFocus rates FRA:PW2 with a GF Score™ of 74/100 and a GF Value™ of €64.62 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,933 Industrial Products companies, Powell Industries ranks better than 90.28% 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.
Powell Industries's 3-Year ROIIC % for the quarter that ended in Sep. 2025 was 67.35%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Powell Industries's 3-Year ROIIC % or its related term are showing as below:
FRA:PW2's 3-Year ROIIC % is ranked better than 90.28% of 2933
companies
in the Industrial Products industry
Industry Median: 3.39
vs FRA:PW2: 67.35
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.
Powell Industries 3-Year ROIIC % Related Terms
Powell Industries 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Powell Industries'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:PW2 vs AYI, ENS, AEIS: 3-Year ROIIC % Comparison
For the Electrical Equipment & Parts subindustry, Powell Industries'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.
Powell Industries 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Powell Industries's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Powell Industries's 3-Year ROIIC % falls into.
Powell Industries's 3-Year ROIIC % for the quarter that ended in Sep. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 143.6489963 (Sep. 2025) - 7.296 (Sep. 2022) )
/
( 467.742 (Sep. 2025) - 312.478 (Sep. 2022) )
=
136.3529963
/
155.264
=
87.82%***
* 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.
Powell Industries (FRA:PW2) has a 3-Year ROIIC % of 67.35 as of Sep. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Powell Industries and its competitors. This is 16% above median its historical median of 57.90. According to the industry distribution chart, Powell Industries ranks #285 out of 2933 companies in the Industrial Products industry, placing it in the top 9.7%.
Is Powell Industries' 3-Year ROIIC % too high?
Powell Industries' current 3-Year ROIIC % of 67.35 is 16% above median its 10-year median of 57.90. The Industrial Products industry median 3-Year ROIIC % is 3.39. Powell Industries' value of 67.35 is 1886.7% above this industry median. Based on the distribution chart, Powell Industries ranks #285 out of 2933 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Powell Industries has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Powell Industries' 3-Year ROIIC % compare to AYI and ENS?
According to the Industrial Products industry distribution chart, Powell Industries ranks #285 out of 2933 companies for 3-Year ROIIC %. This places Powell Industries in the top 10% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.39. Powell Industries' value of 67.35 is 1886.7% above this benchmark. While the company's 10-year median is 57.90 vs. the industry median of 3.39, Powell Industries 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 an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.39, based on 2,933 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. Powell Industries's current 3-Year ROIIC % of 67.35 is 1886.7% 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 Powell Industries and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Powell Industries's current 3-Year ROIIC % is 67.35, which is 16% above median its own 10-year median of 57.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Powell Industries stock overvalued right now?
Based on GuruFocus' analysis, Powell Industries (FRA:PW2) is currently considered Significantly Overvalued. The stock's GF Value™ is €64.62, compared to a current price of €197.00 — trading 204.9% above its estimated fair value. The current 3-Year ROIIC % is 67.35, which is 16% above median its 10-year median of 57.90 and 1886.7% above the Industrial Products industry median of 3.39. Powell Industries' overall GF Score™ is 74/100 with 2 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 Powell Industries (FRA:PW2), the current 3-Year ROIIC % is 67.35 as of Sep. 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 Powell Industries (FRA:PW2) Overvalued in 2026?
Based on GuruFocus' analysis, Powell Industries stock appears to be overvalued.
The current stock price of €197.00 is trading 204.9% above its estimated GF Value™ of €64.62.
GuruFocus considers Powell Industries to be Significantly Overvalued.
Key valuation signals for FRA:PW2:
3-Year ROIIC %: 67.35 (16% above median its 10-year median of 57.90)
GF Value™: €64.62 vs. price of €197.00 (204.9% above fair value)
Industry Position: 1886.7% above the Industrial Products median (#285 of 2933)
No single metric tells the full story. See the FRA:PW2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Powell Industries Inc is a United States-based company that develops, designs, manufactures, and services custom-engineered equipment and systems for electrical energy distribution, control, and monitoring. The company's principal products comprise integrated power control room substations, custom-engineered modules, electrical houses, traditional and arc-resistant distribution switchgear and control gear, and so on. These products are applied in oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light-rail traction power, electric utility, pulp and paper, and other heavy industrial markets. The company generates the majority of its sales from the United States, and the rest from Canada, Europe, Asia Pacific, and other regions.
74GF Score
Get the complete analysis for FRA:PW2
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:PW2 has been successfully added to your 
