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.
Severn Trent's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 5.36%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Severn Trent's 3-Year ROIIC % or its related term are showing as below:
FRA:SVT's 3-Year ROIIC % is ranked better than 56.07% of 478
companies
in the Utilities - Regulated industry
Industry Median: 4.07
vs FRA:SVT: 5.36
Severn Trent (FRA:SVT) 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.
Severn Trent 3-Year ROIIC % Related Terms
Severn Trent 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Severn Trent'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:SVT vs AWK, WTRG, AWR: 3-Year ROIIC % Comparison
For the Utilities - Regulated Water subindustry, Severn Trent'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.
Severn Trent 3-Year ROIIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Severn Trent's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Severn Trent'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.
Severn Trent (FRA:SVT) has a 3-Year ROIIC % of 5.36 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 Severn Trent and its competitors. According to the industry distribution chart, Severn Trent ranks #210 out of 478 companies in the Utilities - Regulated industry, placing it in the top 43.9%.
Is Severn Trent's 3-Year ROIIC % too high?
Severn Trent's current 3-Year ROIIC % is 5.36. The Utilities - Regulated industry median 3-Year ROIIC % is 4.07. Severn Trent's value of 5.36 is 31.7% above this industry median. Based on the distribution chart, Severn Trent ranks #210 out of 478 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Severn Trent has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Severn Trent's 3-Year ROIIC % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Severn Trent ranks #210 out of 478 companies for 3-Year ROIIC %. This puts Severn Trent in the upper half of its industry. The industry median 3-Year ROIIC % is 4.07. Severn Trent's value of 5.36 is 31.7% above this benchmark. 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 Utilities - Regulated company?
The median 3-Year ROIIC % among Utilities - Regulated companies is 4.07, based on 478 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. Severn Trent's current 3-Year ROIIC % of 5.36 is 31.7% 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 Severn Trent and its competitors. For the Utilities - Regulated industry, the median 3-Year ROIIC % is 4.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Severn Trent's current 3-Year ROIIC % is 5.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Severn Trent stock overvalued right now?
Based on GuruFocus' analysis, Severn Trent (FRA:SVT) is currently considered Fairly Valued. The stock's GF Value™ is €34.91, compared to a current price of €34.40 — trading 1.5% below its estimated fair value. The current 3-Year ROIIC % is 5.36 and 31.7% above the Utilities - Regulated industry median of 4.07. Severn Trent's overall GF Score™ is 61/100 with 7 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 Severn Trent (FRA:SVT), the current 3-Year ROIIC % is 5.36 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 Severn Trent (FRA:SVT) Overvalued in 2026?
Based on GuruFocus' analysis, Severn Trent stock appears to be undervalued.
The current stock price of €34.40 is trading 1.5% below its estimated GF Value™ of €34.91.
GuruFocus considers Severn Trent to be Fairly Valued.
Key valuation signals for FRA:SVT:
3-Year ROIIC %: 5.36
GF Value™: €34.91 vs. price of €34.40 (1.5% below fair value)
Industry Position: 31.7% above the Utilities - Regulated median (#210 of 478)
No single metric tells the full story. See the FRA:SVT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Severn Trent PLC is a United Kingdom-based water utilities company. It mainly operates in the U.K., but also in the United States and other countries in Europe. The company derives the majority of its revenue from its regulated water and wastewater segment, which supplies water and conducts sewage and environmental services. The company also operates a business services segment that is involved with renewable energy operations. The company provides contract services to industrial and municipal clients to develop water treatment facilities and networks. The firm generates its renewable energy by using hydropower, wind power, and solar power.
61GF Score
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