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SKF ABLTS:0NWW +1.65%77 3-Year ROIIC % is 72.23 as of Dec. 2025, which is 503% above its 10-year median of 11.97. GuruFocus rates LTS:0NWW with a GF Score™ of 77/100 and a GF Value™ of kr198.51 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,933 Industrial Products companies, SKF AB ranks better than 90.83% 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.
SKF AB's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 72.23%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for SKF AB's 3-Year ROIIC % or its related term are showing as below:
LTS:0NWW's 3-Year ROIIC % is ranked better than 90.83% of 2933
companies
in the Industrial Products industry
Industry Median: 3.47
vs LTS:0NWW: 72.23
SKF AB (LTS:0NWW) 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.
SKF AB 3-Year ROIIC % Related Terms
SKF AB 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for SKF AB'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:0NWW vs SNA, RBC, SWK: 3-Year ROIIC % Comparison
For the Tools & Accessories subindustry, SKF AB'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.
SKF AB 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, SKF AB's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where SKF AB's 3-Year ROIIC % falls into.
SKF AB'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**
=
( 4549.0827 (Dec. 2025) - 6243.6003 (Dec. 2022) )
/
( 84216 (Dec. 2025) - 86562 (Dec. 2022) )
=
-1694.5176
/
-2346
=
72.23%***
* 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.
SKF AB (LTS:0NWW) has a 3-Year ROIIC % of 72.23 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 SKF AB and its competitors. This is 503% above median its historical median of 11.97. According to the industry distribution chart, SKF AB ranks #269 out of 2933 companies in the Industrial Products industry, placing it in the top 9.2%.
Is SKF AB's 3-Year ROIIC % too high?
SKF AB's current 3-Year ROIIC % of 72.23 is 503% above median its 10-year median of 11.97. The Industrial Products industry median 3-Year ROIIC % is 3.47. SKF AB's value of 72.23 is 1981.6% above this industry median. Based on the distribution chart, SKF AB ranks #269 out of 2933 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, SKF AB has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SKF AB's 3-Year ROIIC % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, SKF AB ranks #269 out of 2933 companies for 3-Year ROIIC %. This places SKF AB in the top 9% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.47. SKF AB's value of 72.23 is 1981.6% above this benchmark. While the company's 10-year median is 11.97 vs. the industry median of 3.47, SKF AB 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 an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.47, based on 2,933 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. SKF AB's current 3-Year ROIIC % of 72.23 is 1981.6% 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 SKF AB and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SKF AB's current 3-Year ROIIC % is 72.23, which is 503% above median its own 10-year median of 11.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SKF AB stock overvalued right now?
Based on GuruFocus' analysis, SKF AB (LTS:0NWW) is currently considered Significantly Overvalued. The stock's GF Value™ is kr198.51, compared to a current price of kr261.25 — trading 31.6% above its estimated fair value. The current 3-Year ROIIC % is 72.23, which is 503% above median its 10-year median of 11.97 and 1981.6% above the Industrial Products industry median of 3.47. SKF AB's overall GF Score™ is 77/100 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 SKF AB (LTS:0NWW), the current 3-Year ROIIC % is 72.23 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 SKF AB (LTS:0NWW) Overvalued in 2026?
Based on GuruFocus' analysis, SKF AB stock appears to be overvalued.
The current stock price of kr261.25 is trading 31.6% above its estimated GF Value™ of kr198.51.
GuruFocus considers SKF AB to be Significantly Overvalued.
Key valuation signals for LTS:0NWW:
3-Year ROIIC %: 72.23 (503% above median its 10-year median of 11.97)
GF Value™: kr198.51 vs. price of kr261.25 (31.6% above fair value)
Industry Position: 1981.6% above the Industrial Products median (#269 of 2933)
No single metric tells the full story. See the LTS:0NWW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SKF's history goes back to the first major patents in ball bearings, when in 1907 it was the first to patent the self-aligning ball bearing. SKF and Schaeffler Group are the top two global ball bearing suppliers, followed by Timken, NSK, NTN, and JTEKT. Combined, these six companies supply about 60% of the world's ball bearings. However, most of them have sector niches, as ball bearings for industrial purposes are engineered for specific applications. SKF is based in Sweden and has a global manufacturing footprint of 106 sites and about 17,000 global distributor locations. The firm operates under two segments: industrials, with a fairly fragmented customer base; and automotive, which is the opposite, with a concentrated customer base including the likes of Tesla.
77GF Score
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