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Sekisui HouseFRA:SPH1 -0.08%88 3-Year ROIIC % is 2.82 as of Jan. 2026, which is 77% below its 10-year median of 12.34. GuruFocus rates FRA:SPH1 with a GF Score™ of 88/100 and a GF Value™ of €21.94. The stock has 3 warning signs investors should review. Among 89 Homebuilding & Construction companies, Sekisui House ranks better than 57.3% 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.
Sekisui House's 3-Year ROIIC % for the quarter that ended in Jan. 2026 was 2.82%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Sekisui House's 3-Year ROIIC % or its related term are showing as below:
FRA:SPH1's 3-Year ROIIC % is ranked better than 57.3% of 89
companies
in the Homebuilding & Construction industry
Industry Median: -0.51
vs FRA:SPH1: 2.82
Sekisui House (FRA:SPH1) 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.
Sekisui House 3-Year ROIIC % Related Terms
Sekisui House 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Sekisui House'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:SPH1 vs DHI, PHM, LEN: 3-Year ROIIC % Comparison
For the Residential Construction subindustry, Sekisui House'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.
Sekisui House 3-Year ROIIC % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Sekisui House's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Sekisui House'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.
Sekisui House (FRA:SPH1) has a 3-Year ROIIC % of 2.82 as of Jan. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Sekisui House and its competitors. This is 77% below median its historical median of 12.34. Over the past decade, Sekisui House's 3-Year ROIIC % has ranged from 2.82 to 27.60. According to the industry distribution chart, Sekisui House ranks #38 out of 89 companies in the Homebuilding & Construction industry, placing it in the top 42.7%.
Is Sekisui House's 3-Year ROIIC % too high?
Sekisui House's current 3-Year ROIIC % of 2.82 is 77% below median its 10-year median of 12.34. Over the past 10 years, this metric has ranged from a low of 2.82 to a high of 27.60. Based on the distribution chart, Sekisui House ranks #38 out of 89 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Sekisui House has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Sekisui House's 3-Year ROIIC % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Sekisui House ranks #38 out of 89 companies for 3-Year ROIIC %. This puts Sekisui House in the upper half of its industry. Historically, Sekisui House's own 3-Year ROIIC % has ranged from 2.82 to 27.60 over the past decade. 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 Homebuilding & Construction company?
A good 3-Year ROIIC % depends on the Homebuilding & Construction industry context. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Sekisui House and its competitors. Sekisui House's current 3-Year ROIIC % is 2.82, which is 77% below median its own 10-year median of 12.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sekisui House stock overvalued right now?
Sekisui House (FRA:SPH1) has a current 3-Year ROIIC % of 2.82. The stock's GF Value™ is €21.94, compared to a current price of €18.82 — trading 14.2% below its estimated fair value. The current 3-Year ROIIC % is 2.82, which is 77% below median its 10-year median of 12.34. Sekisui House's overall GF Score™ is 88/100 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 Sekisui House (FRA:SPH1), the current 3-Year ROIIC % is 2.82 as of Jan. 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 Sekisui House (FRA:SPH1) Overvalued in 2026?
Based on GuruFocus' analysis, Sekisui House stock appears to be undervalued.
The current stock price of €18.82 is trading 14.2% below its estimated GF Value™ of €21.94.
Key valuation signals for FRA:SPH1:
3-Year ROIIC %: 2.82 (77% below median its 10-year median of 12.34)
GF Value™: €21.94 vs. price of €18.82 (14.2% below fair value)
No single metric tells the full story. See the FRA:SPH1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sekisui House Ltd company's activities includes equity-method affiliates, is involved in the Custom Detached Houses Business, Rental Housing and Commercial Buildings Business, Architectural/Civil Engineering Business, Rental Housing Management Business, Remodeling Business, Development Business, Overseas Business, and carries out related business activities. Segments includes Custom detached houses Business, Rental housing and commercial buildings Business, Architectural / Civil engineering Business, Rental housing management Business, Remodeling Business, Development Business, and Overseas Business of which majority of revenue comes from Rental housing and commercial buildings Business.
88GF Score
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