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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.
Southwest Gas Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -1.21%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Southwest Gas Holdings's 3-Year ROIIC % or its related term are showing as below:
FRA:SZR's 3-Year ROIIC % is ranked worse than 67.51% of 477
companies
in the Utilities - Regulated industry
Industry Median: 3.81
vs FRA:SZR: -1.21
Southwest Gas Holdings (FRA:SZR) 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.
Southwest Gas Holdings 3-Year ROIIC % Related Terms
Southwest Gas Holdings 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Southwest Gas Holdings'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:SZR vs NJR, BKH, UGI: 3-Year ROIIC % Comparison
For the Utilities - Regulated Gas subindustry, Southwest Gas Holdings'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.
Southwest Gas Holdings 3-Year ROIIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Southwest Gas Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Southwest Gas Holdings'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.
Southwest Gas Holdings (FRA:SZR) has a 3-Year ROIIC % of -1.21 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Southwest Gas Holdings and its competitors. According to the industry distribution chart, Southwest Gas Holdings ranks #322 out of 477 companies in the Utilities - Regulated industry, placing it in the top 67.5%.
Is Southwest Gas Holdings' 3-Year ROIIC % too high?
Southwest Gas Holdings' current 3-Year ROIIC % is -1.21. Based on the distribution chart, Southwest Gas Holdings ranks #322 out of 477 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Southwest Gas Holdings has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Southwest Gas Holdings' 3-Year ROIIC % compare to NJR and BKH?
According to the Utilities - Regulated industry distribution chart, Southwest Gas Holdings ranks #322 out of 477 companies for 3-Year ROIIC %. This places Southwest Gas Holdings in the lower half of its industry. The industry median 3-Year ROIIC % is 3.81. 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 3.81, based on 477 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. 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 Southwest Gas Holdings and its competitors. For the Utilities - Regulated industry, the median 3-Year ROIIC % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Gas Holdings's current 3-Year ROIIC % is -1.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southwest Gas Holdings stock overvalued right now?
Southwest Gas Holdings (FRA:SZR) has a current 3-Year ROIIC % of -1.21. The stock's GF Value™ is €56.72, compared to a current price of €80.50 — trading 41.9% above its estimated fair value. The current 3-Year ROIIC % is -1.21. Southwest Gas Holdings' overall GF Score™ is 67/100 with 11 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 Southwest Gas Holdings (FRA:SZR), the current 3-Year ROIIC % is -1.21 as of Dec. 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 Southwest Gas Holdings (FRA:SZR) Overvalued in 2026?
Based on GuruFocus' analysis, Southwest Gas Holdings stock appears to be overvalued.
The current stock price of €80.50 is trading 41.9% above its estimated GF Value™ of €56.72.
Key valuation signals for FRA:SZR:
3-Year ROIIC %: -1.21
GF Value™: €56.72 vs. price of €80.50 (41.9% above fair value)
No single metric tells the full story. See the FRA:SZR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southwest Gas Holdings Inc is a utility company engaged in the purchasing, distributing, and transporting of natural gas in the American Southwest. The company segments its activities into natural gas distribution segment. The Natural gas distribution segment encompasses the company's core natural gas business as distributors in the states of Arizona and Nevada. Its division is responsible for roughly half of Southwest Gas' total revenue through the sale of natural gas to mainly residential and small commercial customers.
67GF Score
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3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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