PGS Software (LTS:0RK2) 3-Year ROIIC % : 31.48% (As of Dec. 2020)

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What is PGS Software 3-Year ROIIC %?

PGS Software LTS:0RK2 4 3-Year ROIIC % is 31.48 as of Dec. 2020. GuruFocus rates LTS:0RK2 with a GF Score™ of 4/100. The stock has 6 warning signs investors should review.

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. PGS Software's 3-Year ROIIC % for the quarter that ended in Dec. 2020 was 31.48%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for PGS Software's 3-Year ROIIC % or its related term are showing as below:

LTS:0RK2's 3-Year ROIIC % is not ranked
in the Software industry.
Industry Median: 5.345 vs LTS:0RK2: 31.48

PGS Software  (LTS:0RK2) 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.


PGS Software 3-Year ROIIC % Related Terms


PGS Software 3-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for PGS Software'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.

PGS Software 3-Year ROIIC % Chart

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PGS Software Quarterly Data
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LTS:0RK2 vs CRM, INTU, NOW: 3-Year ROIIC % Comparison

For the Software - Application subindustry, PGS Software'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.


PGS Software 3-Year ROIIC % vs Software Industry

For the Software industry and Technology sector, PGS Software's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where PGS Software's 3-Year ROIIC % falls into.



PGS Software 3-Year ROIIC % Calculation

PGS Software's 3-Year ROIIC % for the quarter that ended in Dec. 2020 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 20.9966276 (Dec. 2020) - 17.4406474 (Dec. 2017) )/( 24.211 (Dec. 2020) - 12.916 (Dec. 2017) )
=3.5559802/11.295
=31.48%***

* 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.

Frequently Asked Questions Learn more about 3-Year ROIIC % →
What does a 3-Year ROIIC % of 31.48 mean?
PGS Software (LTS:0RK2) has a 3-Year ROIIC % of 31.48 as of Dec. 2020. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on PGS Software and its competitors.
Is PGS Software's 3-Year ROIIC % too high?
PGS Software's current 3-Year ROIIC % is 31.48. The Software industry median 3-Year ROIIC % is 5.35. PGS Software's value of 31.48 is 489% above this industry median. Overall, PGS Software has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does PGS Software's 3-Year ROIIC % compare to CRM and INTU?
PGS Software's 3-Year ROIIC % of 31.48 can be compared against companies in the Software industry. The industry median 3-Year ROIIC % is 5.35. PGS Software's value of 31.48 is 489% 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 a Software company?
The median 3-Year ROIIC % among Software companies is 5.35, based on 2,624 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. PGS Software's current 3-Year ROIIC % of 31.48 is 489% 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 PGS Software and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PGS Software's current 3-Year ROIIC % is 31.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PGS Software stock overvalued right now?
PGS Software (LTS:0RK2) has a current 3-Year ROIIC % of 31.48. The current 3-Year ROIIC % is 31.48 and 489% above the Software industry median of 5.35. PGS Software's overall GF Score™ is 4/100 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 PGS Software (LTS:0RK2), the current 3-Year ROIIC % is 31.48 as of Dec. 2020. 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.

PGS Software Business Description

Address ul. Klecinska 123, Wroclaw, POL, 54-413
PGS Software SA provides software development and IT outsourcing services in Poland. It offers nearshore software outsourcing; mobile and web; application development; continuous delivery, quality analysis, and automation; and cloud services.