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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.
Travis Perkins's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 12.47%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Travis Perkins's 3-Year ROIIC % or its related term are showing as below:
LSE:TPK's 3-Year ROIIC % is ranked better than 68% of 150
companies
in the Industrial Distribution industry
Industry Median: 3.35
vs LSE:TPK: 12.47
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.
Travis Perkins 3-Year ROIIC % Related Terms
Travis Perkins 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Travis Perkins'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:TPK vs GWW, FAST, FERG: 3-Year ROIIC % Comparison
For the Industrial Distribution subindustry, Travis Perkins'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.
Travis Perkins 3-Year ROIIC % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Travis Perkins's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Travis Perkins's 3-Year ROIIC % falls into.
Travis Perkins's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 132.1 (Dec. 2025) - 199.8906 (Dec. 2022) )
/
( 2612.4 (Dec. 2025) - 3156.1 (Dec. 2022) )
=
-67.7906
/
-543.7
=
12.47%***
* 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.
Travis Perkins (LSE:TPK) has a 3-Year ROIIC % of 12.47 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 Travis Perkins and its competitors. According to the industry distribution chart, Travis Perkins ranks #48 out of 150 companies in the Industrial Distribution industry, placing it in the top 32%.
Is Travis Perkins' 3-Year ROIIC % too high?
Travis Perkins' current 3-Year ROIIC % is 12.47. The Industrial Distribution industry median 3-Year ROIIC % is 3.35. Travis Perkins' value of 12.47 is 272.2% above this industry median. Based on the distribution chart, Travis Perkins ranks #48 out of 150 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, Travis Perkins has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Travis Perkins' 3-Year ROIIC % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Travis Perkins ranks #48 out of 150 companies for 3-Year ROIIC %. This puts Travis Perkins in the upper half of its industry. The industry median 3-Year ROIIC % is 3.35. Travis Perkins' value of 12.47 is 272.2% above this benchmark. 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 Industrial Distribution company?
The median 3-Year ROIIC % among Industrial Distribution companies is 3.35, based on 150 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. Travis Perkins's current 3-Year ROIIC % of 12.47 is 272.2% 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 Travis Perkins and its competitors. For the Industrial Distribution industry, the median 3-Year ROIIC % is 3.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Travis Perkins's current 3-Year ROIIC % is 12.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Travis Perkins stock overvalued right now?
Based on GuruFocus' analysis, Travis Perkins (LSE:TPK) is currently considered Modestly Undervalued. The stock's GF Value™ is £7.11, compared to a current price of £5.44 — trading 23.6% below its estimated fair value. The current 3-Year ROIIC % is 12.47 and 272.2% above the Industrial Distribution industry median of 3.35. Travis Perkins' overall GF Score™ is 72/100 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 Travis Perkins (LSE:TPK), the current 3-Year ROIIC % is 12.47 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 Travis Perkins (LSE:TPK) Overvalued in 2026?
Based on GuruFocus' analysis, Travis Perkins stock appears to be undervalued.
The current stock price of £5.44 is trading 23.6% below its estimated GF Value™ of £7.11.
GuruFocus considers Travis Perkins to be Modestly Undervalued.
Key valuation signals for LSE:TPK:
3-Year ROIIC %: 12.47
GF Value™: £7.11 vs. price of £5.44 (23.6% below fair value)
Industry Position: 272.2% above the Industrial Distribution median (#48 of 150)
No single metric tells the full story. See the LSE:TPK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Travis Perkins PLC makes and sells products to the construction and home improvement industries in the United Kingdom. It offers commercial and industrial heating and cooling solutions, air conditioning, refrigeration, heat pump equipment and installation materials, and interior building products, among others. The company organizes itself into two segments: Merchanting, which generates maximum revenue, and Toolstation. The Merchanting segment sells building materials at prices specifically negotiated with customers, with variation in the products offered in each branch. The Toolstation segment includes both the UK and Benelux businesses, and sells building materials at a fixed price, with a fixed range in each store. Geographically, the company mainly operates in the United Kingdom.
72GF 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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