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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.
Alaska Air Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -1.32%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Alaska Air Group's 3-Year ROIIC % or its related term are showing as below:
LTS:0HC3's 3-Year ROIIC % is ranked worse than 60.13% of 938
companies
in the Transportation industry
Industry Median: 2.005
vs LTS:0HC3: -1.32
Alaska Air Group (LTS:0HC3) 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.
Alaska Air Group 3-Year ROIIC % Related Terms
Alaska Air Group 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Alaska Air 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.
LTS:0HC3 vs CPA, SKYW, ALGT: 3-Year ROIIC % Comparison
For the Airlines subindustry, Alaska Air 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.
Alaska Air Group 3-Year ROIIC % vs Transportation Industry
For the Transportation industry and Industrials sector, Alaska Air Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Alaska Air Group's 3-Year ROIIC % falls into.
Alaska Air Group'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**
=
( 378.7497 (Dec. 2025) - 477.23 (Dec. 2022) )
/
( 21424 (Dec. 2025) - 13953 (Dec. 2022) )
=
-98.4803
/
7471
=
-1.32%***
* 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.
Alaska Air Group (LTS:0HC3) has a 3-Year ROIIC % of -1.32 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 Alaska Air Group and its competitors. According to the industry distribution chart, Alaska Air Group ranks #564 out of 938 companies in the Transportation industry, placing it in the top 60.1%.
Is Alaska Air Group's 3-Year ROIIC % too high?
Alaska Air Group's current 3-Year ROIIC % is -1.32. Based on the distribution chart, Alaska Air Group ranks #564 out of 938 companies in the Transportation industry, which is below the industry midpoint. Overall, Alaska Air Group has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alaska Air Group's 3-Year ROIIC % compare to CPA and SKYW?
According to the Transportation industry distribution chart, Alaska Air Group ranks #564 out of 938 companies for 3-Year ROIIC %. This places Alaska Air Group in the lower half of its industry. The industry median 3-Year ROIIC % is 2.01. 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 Transportation company?
The median 3-Year ROIIC % among Transportation companies is 2.01, based on 938 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 Alaska Air Group and its competitors. For the Transportation industry, the median 3-Year ROIIC % is 2.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alaska Air Group's current 3-Year ROIIC % is -1.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alaska Air Group stock overvalued right now?
Based on GuruFocus' analysis, Alaska Air Group (LTS:0HC3) is currently considered Modestly Undervalued. The stock's GF Value™ is $63.90, compared to a current price of $48.12 — trading 24.7% below its estimated fair value. The current 3-Year ROIIC % is -1.32. Alaska Air Group's overall GF Score™ is 85/100 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 Alaska Air Group (LTS:0HC3), the current 3-Year ROIIC % is -1.32 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 Alaska Air Group (LTS:0HC3) Overvalued in 2026?
Based on GuruFocus' analysis, Alaska Air Group stock appears to be undervalued.
The current stock price of $48.12 is trading 24.7% below its estimated GF Value™ of $63.90.
GuruFocus considers Alaska Air Group to be Modestly Undervalued.
Key valuation signals for LTS:0HC3:
3-Year ROIIC %: -1.32
GF Value™: $63.90 vs. price of $48.12 (24.7% below fair value)
No single metric tells the full story. See the LTS:0HC3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alaska Air Group Inc operates two airlines, Alaska and Horizon, in three operating segments. The Alaska Airlines segment includes scheduled air transportation on Alaska's Boeing and Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Mexico and Costa Rica. The Regional segment includes Horizon's and other third-party carriers' scheduled air transportation for passengers across a shorter distance network within the U.S. and Canada under capacity purchase agreements. The Hawaiian Airlines segment includes scheduled air transportation on Hawaiian's Boeing and Airbus aircraft for passengers and cargo. It earns revenues from Passenger tickets, including ticket breakage and net of taxes and fees, Passenger ancillary, and Mileage Plan passenger revenue.
85GF Score
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