Labat AfricaJSE:LAB 3-Year ROIIC % is -3.70 as of May. 2024. The stock has 5 warning signs investors should review. Among 941 Drug Manufacturers companies, Labat Africa ranks worse than 63.34% 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.
Labat Africa's 3-Year ROIIC % for the quarter that ended in May. 2024 was -3.70%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Labat Africa's 3-Year ROIIC % or its related term are showing as below:
JSE:LAB's 3-Year ROIIC % is ranked worse than 63.34% of 941
companies
in the Drug Manufacturers industry
Industry Median: 3.7
vs JSE:LAB: -3.70
Labat Africa (JSE:LAB) 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.
Labat Africa 3-Year ROIIC % Related Terms
Labat Africa 3-Year ROIIC % Historical Data
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The historical data trend for Labat Africa'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.
JSE:LAB vs ZTS, UTHR, VTRS: 3-Year ROIIC % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa'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.
Labat Africa 3-Year ROIIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Labat Africa'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.
Labat Africa (JSE:LAB) has a 3-Year ROIIC % of -3.70 as of May. 2024. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Labat Africa and its competitors. According to the industry distribution chart, Labat Africa ranks #596 out of 941 companies in the Drug Manufacturers industry, placing it in the top 63.3%.
Is Labat Africa's 3-Year ROIIC % too high?
Labat Africa's current 3-Year ROIIC % is -3.70. Based on the distribution chart, Labat Africa ranks #596 out of 941 companies in the Drug Manufacturers industry, which is below the industry midpoint.
How does Labat Africa's 3-Year ROIIC % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #596 out of 941 companies for 3-Year ROIIC %. This places Labat Africa in the lower half of its industry. The industry median 3-Year ROIIC % is 3.70. 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 Drug Manufacturers company?
The median 3-Year ROIIC % among Drug Manufacturers companies is 3.70, based on 941 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 Labat Africa and its competitors. For the Drug Manufacturers industry, the median 3-Year ROIIC % is 3.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labat Africa's current 3-Year ROIIC % is -3.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.22, compared to a current price of R0.05 — trading 77.3% below its estimated fair value. The current 3-Year ROIIC % is -3.70. 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 Labat Africa (JSE:LAB), the current 3-Year ROIIC % is -3.70 as of May. 2024. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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