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REACT GroupLSE:REAT 44 3-Year ROIIC % is 5.08 as of Sep. 2025, which is 121% above its 10-year median of 2.30. GuruFocus rates LSE:REAT with a GF Score™ of 44/100 and a GF Value™ of £0.82 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 1,012 Business Services companies, REACT Group ranks worse than 50.2% 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.
REACT Group's 3-Year ROIIC % for the quarter that ended in Sep. 2025 was 5.08%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for REACT Group's 3-Year ROIIC % or its related term are showing as below:
LSE:REAT's 3-Year ROIIC % is ranked worse than 50.2% of 1012
companies
in the Business Services industry
Industry Median: 5.14
vs LSE:REAT: 5.08
REACT Group (LSE:REAT) 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.
REACT Group 3-Year ROIIC % Related Terms
REACT Group 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for REACT Group'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.
LSE:REAT vs CTAS, CPRT, ULS: 3-Year ROIIC % Comparison
For the Specialty Business Services subindustry, REACT Group'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.
REACT Group 3-Year ROIIC % vs Business Services Industry
For the Business Services industry and Industrials sector, REACT Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where REACT Group's 3-Year ROIIC % falls into.
REACT Group's 3-Year ROIIC % for the quarter that ended in Sep. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 0.352 (Sep. 2025) - 0.031 (Sep. 2022) )
/
( 18.483 (Sep. 2025) - 12.17 (Sep. 2022) )
=
0.321
/
6.313
=
5.08%***
* 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.
REACT Group (LSE:REAT) has a 3-Year ROIIC % of 5.08 as of Sep. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on REACT Group and its competitors. This is 121% above median its historical median of 2.30. According to the industry distribution chart, REACT Group ranks #508 out of 1012 companies in the Business Services industry, placing it in the top 50.2%.
Is REACT Group's 3-Year ROIIC % too high?
REACT Group's current 3-Year ROIIC % of 5.08 is 121% above median its 10-year median of 2.30. The Business Services industry median 3-Year ROIIC % is 5.14. REACT Group's value of 5.08 is 1.2% below this industry median. Based on the distribution chart, REACT Group ranks #508 out of 1012 companies in the Business Services industry, which is below the industry midpoint. Overall, REACT Group has a GF Score™ of 44/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does REACT Group's 3-Year ROIIC % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, REACT Group ranks #508 out of 1012 companies for 3-Year ROIIC %. This places REACT Group in the lower half of its industry. The industry median 3-Year ROIIC % is 5.14. REACT Group's value of 5.08 is 1.2% below this benchmark. While the company's 10-year median is 2.30 vs. the industry median of 5.14, REACT Group has consistently been below 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 Business Services company?
The median 3-Year ROIIC % among Business Services companies is 5.14, based on 1,012 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. REACT Group's current 3-Year ROIIC % of 5.08 is 1.2% below 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 REACT Group and its competitors. For the Business Services industry, the median 3-Year ROIIC % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REACT Group's current 3-Year ROIIC % is 5.08, which is 121% above median its own 10-year median of 2.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REACT Group stock overvalued right now?
Based on GuruFocus' analysis, REACT Group (LSE:REAT) is currently considered Significantly Undervalued. The stock's GF Value™ is £0.82, compared to a current price of £0.43 — trading 48.2% below its estimated fair value. The current 3-Year ROIIC % is 5.08, which is 121% above median its 10-year median of 2.30 and 1.2% below the Business Services industry median of 5.14. REACT Group's overall GF Score™ is 44/100 with 6 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 REACT Group (LSE:REAT), the current 3-Year ROIIC % is 5.08 as of Sep. 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 REACT Group (LSE:REAT) Overvalued in 2026?
Based on GuruFocus' analysis, REACT Group stock appears to be undervalued.
The current stock price of £0.43 is trading 48.2% below its estimated GF Value™ of £0.82.
GuruFocus considers REACT Group to be Significantly Undervalued.
Key valuation signals for LSE:REAT:
3-Year ROIIC %: 5.08 (121% above median its 10-year median of 2.30)
GF Value™: £0.82 vs. price of £0.43 (48.2% below fair value)
Industry Position: 1.2% below the Business Services median (#508 of 1012)
No single metric tells the full story. See the LSE:REAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REACT Group PLC is engaged in providing cleaning, decontamination, hygiene services, drainage and plumbing including both contracted commercial cleaning and specialist emergency decontamination work. Its objective is to maintain and/or rapidly return its customer's property to safe, clean, operational use and do this through regular specialist cleaning and/or emergency response to potentially harmful incidents. The business operates through three divisions; commercial windows & cladding, hygiene & maintenance, and, emergency & decontamination. It has three operating segments; Contract Maintenance, Contract Reactive, and Ad Hoc work, out of which a majority of the revenue is generated from the contract maintenance segment.
44GF Score
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