Sumitomo Realty & Development Co (FRA:RL2) 3-Year ROIIC % : 4.32% (As of Mar. 2026) — 18% Above Median


FRA:RL2 Sumitomo Realty & Development Co Ltd FRA:RL2
78 GF Score
Price €20.20
GF Value €14.99
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Sumitomo Realty & Development Co 3-Year ROIIC %?

Sumitomo Realty & Development Co FRA:RL2 78 3-Year ROIIC % is 4.32 as of Mar. 2026, which is 18% above its 10-year median of 3.67. GuruFocus rates FRA:RL2 with a GF Score™ of 78/100 and a GF Value™ of €14.99 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,664 Real Estate companies, Sumitomo Realty & Development Co ranks better than 58.47% 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. Sumitomo Realty & Development Co's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 4.32%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Sumitomo Realty & Development Co's 3-Year ROIIC % or its related term are showing as below:

FRA:RL2's 3-Year ROIIC % is ranked better than
58.47% of 1664 companies
in the Real Estate industry
Industry Median: 2.35 vs FRA:RL2: 4.32

Sumitomo Realty & Development Co  (FRA:RL2) 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.


Sumitomo Realty & Development Co 3-Year ROIIC % Related Terms


Sumitomo Realty & Development Co 3-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for Sumitomo Realty & Development Co'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.

Sumitomo Realty & Development Co 3-Year ROIIC % Chart

Sumitomo Realty & Development Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.37 0.85 2.87 3.02 4.32

Sumitomo Realty & Development Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
3-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.02 0.00 0.00 0.00 4.32

FRA:RL2 vs CBRE, BEKE, JLL: 3-Year ROIIC % Comparison

For the Real Estate Services subindustry, Sumitomo Realty & Development Co'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.


Sumitomo Realty & Development Co 3-Year ROIIC % vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Sumitomo Realty & Development Co's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Sumitomo Realty & Development Co's 3-Year ROIIC % falls into.


FRA:RL2
78GF Score
Sumitomo Realty & Development Co Ltd FRA:RL2
3-Year ROIIC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sumitomo Realty & Development Co 3-Year ROIIC % Calculation

Sumitomo Realty & Development Co's 3-Year ROIIC % for the quarter that ended in Mar. 2026 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 1141.6838744 (Mar. 2026) - 1185.22988 (Mar. 2023) )/( 38391.976 (Mar. 2026) - 42767.41 (Mar. 2023) )
=-43.5460056/-4375.434
=1.00%***

* 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.

Frequently Asked Questions Learn more about 3-Year ROIIC % →
What does a 3-Year ROIIC % of 4.32 mean?
Sumitomo Realty & Development Co (FRA:RL2) has a 3-Year ROIIC % of 4.32 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 Sumitomo Realty & Development Co and its competitors. This is 18% above median its historical median of 3.67. Over the past decade, Sumitomo Realty & Development Co's 3-Year ROIIC % has ranged from 0.85 to 7.38. According to the industry distribution chart, Sumitomo Realty & Development Co ranks #691 out of 1664 companies in the Real Estate industry, placing it in the top 41.5%.
Is Sumitomo Realty & Development Co's 3-Year ROIIC % too high?
Sumitomo Realty & Development Co's current 3-Year ROIIC % of 4.32 is 18% above median its 10-year median of 3.67. Over the past 10 years, this metric has ranged from a low of 0.85 to a high of 7.38. The Real Estate industry median 3-Year ROIIC % is 2.35. Sumitomo Realty & Development Co's value of 4.32 is 83.8% above this industry median. Based on the distribution chart, Sumitomo Realty & Development Co ranks #691 out of 1664 companies in the Real Estate industry, which is above the industry midpoint. Overall, Sumitomo Realty & Development Co has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Realty & Development Co's 3-Year ROIIC % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Sumitomo Realty & Development Co ranks #691 out of 1664 companies for 3-Year ROIIC %. This puts Sumitomo Realty & Development Co in the upper half of its industry. The industry median 3-Year ROIIC % is 2.35. Sumitomo Realty & Development Co's value of 4.32 is 83.8% above this benchmark. Historically, Sumitomo Realty & Development Co's own 3-Year ROIIC % has ranged from 0.85 to 7.38 over the past decade. While the company's 10-year median is 3.67 vs. the industry median of 2.35, Sumitomo Realty & Development Co 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 Real Estate company?
The median 3-Year ROIIC % among Real Estate companies is 2.35, based on 1,664 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. Sumitomo Realty & Development Co's current 3-Year ROIIC % of 4.32 is 83.8% 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 Sumitomo Realty & Development Co and its competitors. For the Real Estate 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. Sumitomo Realty & Development Co's current 3-Year ROIIC % is 4.32, which is 18% above median its own 10-year median of 3.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Realty & Development Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Realty & Development Co (FRA:RL2) is currently considered Significantly Overvalued. The stock's GF Value™ is €14.99, compared to a current price of €20.20 — trading 34.8% above its estimated fair value. The current 3-Year ROIIC % is 4.32, which is 18% above median its 10-year median of 3.67 and 83.8% above the Real Estate industry median of 2.35. Sumitomo Realty & Development Co's overall GF Score™ is 78/100 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 Sumitomo Realty & Development Co (FRA:RL2), the current 3-Year ROIIC % is 4.32 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 Sumitomo Realty & Development Co (FRA:RL2) Overvalued in 2026?

Based on GuruFocus' analysis, Sumitomo Realty & Development Co stock appears to be overvalued. The current stock price of €20.20 is trading 34.8% above its estimated GF Value™ of €14.99. GuruFocus considers Sumitomo Realty & Development Co to be Significantly Overvalued.

Key valuation signals for FRA:RL2:

  • 3-Year ROIIC %: 4.32 (18% above median its 10-year median of 3.67)
  • GF Value™: €14.99 vs. price of €20.20 (34.8% above fair value)
  • GF Score™: 78/100 with 3 warning signs
  • Industry Position: 83.8% above the Real Estate median (#691 of 1664)

No single metric tells the full story. See the FRA:RL2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sumitomo Realty & Development Co Business Description

Address 2-4-1 Nishi-Shinjuku, Shinjuku NS Building, Shinjuku-ku, Tokyo, JPN, 163-0820
Sumitomo Realty & Development is a Japan-based company engaged in the real estate business. The company operates through four segments. The Completed Construction segment covers construction and renovation contracts for detached houses and condominiums. The Real Estate Distribution segment involves brokerage and sales agency services. The Real Estate Rental segment includes leasing and management of office buildings, condominiums, hotels, event halls, and commercial facilities. The Real Estate Sales segment focuses on condominiums and detached houses, and the Others segment covers businesses such as fitness clubs and restaurants. It generates the majority of its revenue from the Real estate rental segment.
78GF Score

Get the complete analysis for FRA:RL2

3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€20.20
Price
€14.99
GF Value