Aeorema Communications (LSE:AEO) 3-Year ROIIC % : 17.20% (As of Jun. 2024) — Near Median

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LSE:AEO Aeorema Communications PLC LSE:AEO
58 GF Score
Price £0.62
GF Value £0.79
Valuation Modestly Undervalued
! 9 Warning Signs
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What is Aeorema Communications 3-Year ROIIC %?

Aeorema Communications LSE:AEO 58 3-Year ROIIC % is 17.20 as of Jun. 2024, which is 9% above its 10-year median of 15.77. GuruFocus rates LSE:AEO with a GF Score™ of 58/100 and a GF Value™ of £0.79 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 947 Media - Diversified companies, Aeorema Communications ranks better than 71.59% 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. Aeorema Communications's 3-Year ROIIC % for the quarter that ended in Jun. 2024 was 17.20%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Aeorema Communications's 3-Year ROIIC % or its related term are showing as below:

LSE:AEO's 3-Year ROIIC % is ranked better than
71.59% of 947 companies
in the Media - Diversified industry
Industry Median: 1.36 vs LSE:AEO: 17.20

Aeorema Communications  (LSE:AEO) 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.


Aeorema Communications 3-Year ROIIC % Related Terms


Aeorema Communications 3-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for Aeorema Communications'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.

Aeorema Communications 3-Year ROIIC % Chart

Aeorema Communications Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -40.58 -82.75 14.33 39.08 17.20

Aeorema Communications Semi-Annual Data
Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25
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 39.08 0.00 17.20 0.00 21.96

LSE:AEO vs NFLX, DIS, WBD: 3-Year ROIIC % Comparison

For the Entertainment subindustry, Aeorema Communications'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.


Aeorema Communications 3-Year ROIIC % vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Aeorema Communications's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Aeorema Communications's 3-Year ROIIC % falls into.


LSE:AEO
58GF Score
Aeorema Communications PLC LSE:AEO
3-Year ROIIC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Aeorema Communications 3-Year ROIIC % Calculation

Aeorema Communications's 3-Year ROIIC % for the quarter that ended in Jun. 2024 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 0.3493144 (Jun. 2024) - -0.245 (Jun. 2021) )/( 4.778 (Jun. 2024) - 1.322 (Jun. 2021) )
=0.5943144/3.456
=17.20%***

* 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 17.20 mean?
Aeorema Communications (LSE:AEO) has a 3-Year ROIIC % of 17.20 as of Jun. 2024. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Aeorema Communications and its competitors. This is near median its historical median of 15.77. According to the industry distribution chart, Aeorema Communications ranks #269 out of 947 companies in the Media - Diversified industry, placing it in the top 28.4%.
Is Aeorema Communications' 3-Year ROIIC % too high?
Aeorema Communications' current 3-Year ROIIC % of 17.20 is near median its 10-year median of 15.77. The Media - Diversified industry median 3-Year ROIIC % is 1.36. Aeorema Communications' value of 17.20 is 1164.7% above this industry median. Based on the distribution chart, Aeorema Communications ranks #269 out of 947 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Aeorema Communications has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aeorema Communications' 3-Year ROIIC % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Aeorema Communications ranks #269 out of 947 companies for 3-Year ROIIC %. This puts Aeorema Communications in the upper half of its industry. The industry median 3-Year ROIIC % is 1.36. Aeorema Communications' value of 17.20 is 1164.7% above this benchmark. While the company's 10-year median is 15.77 vs. the industry median of 1.36, Aeorema Communications 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 Media - Diversified company?
The median 3-Year ROIIC % among Media - Diversified companies is 1.36, based on 947 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. Aeorema Communications's current 3-Year ROIIC % of 17.20 is 1164.7% 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 Aeorema Communications and its competitors. For the Media - Diversified industry, the median 3-Year ROIIC % is 1.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aeorema Communications's current 3-Year ROIIC % is 17.20, which is near median its own 10-year median of 15.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aeorema Communications stock overvalued right now?
Based on GuruFocus' analysis, Aeorema Communications (LSE:AEO) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.79, compared to a current price of £0.62 — trading 21.5% below its estimated fair value. The current 3-Year ROIIC % is 17.20, which is near median its 10-year median of 15.77 and 1164.7% above the Media - Diversified industry median of 1.36. Aeorema Communications' overall GF Score™ is 58/100 with 9 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 Aeorema Communications (LSE:AEO), the current 3-Year ROIIC % is 17.20 as of Jun. 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.

Is Aeorema Communications (LSE:AEO) Overvalued in 2026?

Based on GuruFocus' analysis, Aeorema Communications stock appears to be undervalued. The current stock price of £0.62 is trading 21.5% below its estimated GF Value™ of £0.79. GuruFocus considers Aeorema Communications to be Modestly Undervalued.

Key valuation signals for LSE:AEO:

  • 3-Year ROIIC %: 17.20 (near median its 10-year median of 15.77)
  • GF Value™: £0.79 vs. price of £0.62 (21.5% below fair value)
  • GF Score™: 58/100 with 9 warning signs
  • Industry Position: 1164.7% above the Media - Diversified median (#269 of 947)

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


Aeorema Communications Business Description

Address 87 New Cavendish Street, London, GBR, W1W 6XD
Aeorema Communications PLC is a live events company. The company specializes in devising and delivering corporate communication solutions. The company's customers are spread across the United Kingdom, the United States, and the rest of the world. The revenue generated by the company is derived from the provision of services like assisting clients with venue sourcing, event management, and incentive travel.
58GF Score

Get the complete analysis for LSE:AEO

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

£0.62
Price
£0.79
GF Value