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LZ Technology HoldingsLZMH -0.80%12 3-Year ROIIC % is -533.00 as of Dec. 2025. GuruFocus rates LZMH with a GF Score™ of 12/100. The stock has 6 warning signs investors should review. Among 2,625 Software companies, LZ Technology Holdings ranks worse than 97.98% 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.
LZ Technology Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -533.00%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for LZ Technology Holdings's 3-Year ROIIC % or its related term are showing as below:
LZMH's 3-Year ROIIC % is ranked worse than 97.98% of 2625
companies
in the Software industry
Industry Median: 5.24
vs LZMH: -533.00
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.
LZ Technology Holdings 3-Year ROIIC % Related Terms
LZ Technology Holdings 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for LZ Technology Holdings'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.
LZMH vs VEEA, SUIC, ARBB: 3-Year ROIIC % Comparison
For the Information Technology Services subindustry, LZ Technology Holdings'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.
LZ Technology Holdings 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, LZ Technology Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where LZ Technology Holdings's 3-Year ROIIC % falls into.
LZ Technology Holdings'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**
=
( -24.99 (Dec. 2025) - -3.153 (Dec. 2022) )
/
( 19.376 (Dec. 2025) - 15.279 (Dec. 2022) )
=
-21.837
/
4.097
=
-533.00%***
* 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.
LZ Technology Holdings (LZMH) has a 3-Year ROIIC % of -533.00 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 LZ Technology Holdings and its competitors. According to the industry distribution chart, LZ Technology Holdings ranks #2572 out of 2625 companies in the Software industry, placing it in the top 98%.
Is LZ Technology Holdings' 3-Year ROIIC % too high?
LZ Technology Holdings' current 3-Year ROIIC % is -533.00. Based on the distribution chart, LZ Technology Holdings ranks #2572 out of 2625 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, LZ Technology Holdings has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does LZ Technology Holdings' 3-Year ROIIC % compare to VEEA and SUIC?
According to the Software industry distribution chart, LZ Technology Holdings ranks #2572 out of 2625 companies for 3-Year ROIIC %. This places LZ Technology Holdings in the lower half of its industry. The industry median 3-Year ROIIC % is 5.24. 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 5.24, based on 2,625 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 LZ Technology Holdings and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LZ Technology Holdings's current 3-Year ROIIC % is -533.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LZ Technology Holdings stock overvalued right now?
LZ Technology Holdings (LZMH) has a current 3-Year ROIIC % of -533.00. The current 3-Year ROIIC % is -533.00. LZ Technology Holdings' overall GF Score™ is 12/100 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 LZ Technology Holdings (LZMH), the current 3-Year ROIIC % is -533.00 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.
LZ Technology Holdings Ltd conducts its operations through operating entities formed in the PRC, Lianzhang Portal, and its subsidiaries. The company is an information technology and advertising company with operations organized into three business verticals: Smart Community, which focuses on community access control systems and related technology services; Out-of-Home Advertising, which generates advertising revenue through advertisement displays via community access control devices and subcontractor channels; and Lifestyle Services, which provides lifestyle-related services including retail sales of diversified products, voucher promotion through e-commerce platforms such as WeChat mini programs and Douyin, and other merchant operation and online marketing services.
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