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SoftcatLSE:SCT -0.74%90 3-Year ROIIC % is 5.58 as of Jul. 2025, which is 89% below its 10-year median of 49.96. GuruFocus rates LSE:SCT with a GF Score™ of 90/100 and a GF Value™ of £26.05 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,375 Hardware companies, Softcat ranks better than 55.12% 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.
Softcat's 3-Year ROIIC % for the quarter that ended in Jul. 2025 was 5.58%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Softcat's 3-Year ROIIC % or its related term are showing as below:
LSE:SCT's 3-Year ROIIC % is ranked better than 55.12% of 2375
companies
in the Hardware industry
Industry Median: 2.34
vs LSE:SCT: 5.58
Softcat (LSE:SCT) 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.
Softcat 3-Year ROIIC % Related Terms
Softcat 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Softcat'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:SCT vs SNX, ARW, AVT: 3-Year ROIIC % Comparison
For the Electronics & Computer Distribution subindustry, Softcat'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.
Softcat 3-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, Softcat's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Softcat'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.
Softcat (LSE:SCT) has a 3-Year ROIIC % of 5.58 as of Jul. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Softcat and its competitors. This is 89% below median its historical median of 49.96. Over the past decade, Softcat's 3-Year ROIIC % has ranged from 5.58 to 191.34. According to the industry distribution chart, Softcat ranks #1066 out of 2375 companies in the Hardware industry, placing it in the top 44.9%.
Is Softcat's 3-Year ROIIC % too high?
Softcat's current 3-Year ROIIC % of 5.58 is 89% below median its 10-year median of 49.96. Over the past 10 years, this metric has ranged from a low of 5.58 to a high of 191.34. The Hardware industry median 3-Year ROIIC % is 2.34. Softcat's value of 5.58 is 138.5% above this industry median. Based on the distribution chart, Softcat ranks #1066 out of 2375 companies in the Hardware industry, which is above the industry midpoint. Overall, Softcat has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Softcat's 3-Year ROIIC % compare to SNX and ARW?
According to the Hardware industry distribution chart, Softcat ranks #1066 out of 2375 companies for 3-Year ROIIC %. This puts Softcat in the upper half of its industry. The industry median 3-Year ROIIC % is 2.34. Softcat's value of 5.58 is 138.5% above this benchmark. Historically, Softcat's own 3-Year ROIIC % has ranged from 5.58 to 191.34 over the past decade. While the company's 10-year median is 49.96 vs. the industry median of 2.34, Softcat 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 Hardware company?
The median 3-Year ROIIC % among Hardware companies is 2.34, based on 2,375 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. Softcat's current 3-Year ROIIC % of 5.58 is 138.5% 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 Softcat and its competitors. For the Hardware industry, the median 3-Year ROIIC % is 2.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Softcat's current 3-Year ROIIC % is 5.58, which is 89% below median its own 10-year median of 49.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softcat stock overvalued right now?
Based on GuruFocus' analysis, Softcat (LSE:SCT) is currently considered Modestly Undervalued. The stock's GF Value™ is £26.05, compared to a current price of £18.89 — trading 27.5% below its estimated fair value. The current 3-Year ROIIC % is 5.58, which is 89% below median its 10-year median of 49.96 and 138.5% above the Hardware industry median of 2.34. Softcat's overall GF Score™ is 90/100 with 4 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 Softcat (LSE:SCT), the current 3-Year ROIIC % is 5.58 as of Jul. 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 Softcat (LSE:SCT) Overvalued in 2026?
Based on GuruFocus' analysis, Softcat stock appears to be undervalued.
The current stock price of £18.89 is trading 27.5% below its estimated GF Value™ of £26.05.
GuruFocus considers Softcat to be Modestly Undervalued.
Key valuation signals for LSE:SCT:
3-Year ROIIC %: 5.58 (89% below median its 10-year median of 49.96)
GF Value™: £26.05 vs. price of £18.89 (27.5% below fair value)
Industry Position: 138.5% above the Hardware median (#1066 of 2375)
No single metric tells the full story. See the LSE:SCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Softcat PLC is an information technology infrastructure and service provider offering software licensing, workplace technology, networking and security, and cloud and data center solutions to corporates, public sector organizations, and small to medium-sized businesses, with the latter being the main business provider. It earns revenue from software, hardware, and services, including its own services, with the majority derived from software products. Its solutions include Workspace, Cyber Security, Networking and Connectivity, Data, Automation and AI, and Hybrid Cloud Solutions. The company serves Small to Medium Businesses, Enterprise, Multinational Services, and the Public Sector including healthcare, education, government, defence, police, and emergency services.
90GF Score
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