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NECNECPY -1.60%62 3-Year ROIIC % is 68.68 as of Mar. 2026, which is 359% above its 10-year median of 14.96. GuruFocus rates NECPY with a GF Score™ of 62/100 and a GF Value™ of $9.26 (Significantly Overvalued). Among 2,623 Software companies, NEC ranks better than 84.71% 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.
NEC's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 68.68%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for NEC's 3-Year ROIIC % or its related term are showing as below:
NECPY's 3-Year ROIIC % is ranked better than 84.71% of 2623
companies
in the Software industry
Industry Median: 5.34
vs NECPY: 68.68
NEC (OTCPK:NECPY) 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.
NEC 3-Year ROIIC % Related Terms
NEC 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for NEC'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.
NECPY vs IBM, ACN, FISV: 3-Year ROIIC % Comparison
For the Information Technology Services subindustry, NEC'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.
NEC 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, NEC's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where NEC's 3-Year ROIIC % falls into.
* 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.
NEC (NECPY) has a 3-Year ROIIC % of 68.68 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on NEC and its competitors. This is 359% above median its historical median of 14.96. According to the industry distribution chart, NEC ranks #401 out of 2623 companies in the Software industry, placing it in the top 15.3%.
Is NEC's 3-Year ROIIC % too high?
NEC's current 3-Year ROIIC % of 68.68 is 359% above median its 10-year median of 14.96. The Software industry median 3-Year ROIIC % is 5.34. NEC's value of 68.68 is 1186.1% above this industry median. Based on the distribution chart, NEC ranks #401 out of 2623 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, NEC has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NEC's 3-Year ROIIC % compare to IBM and ACN?
According to the Software industry distribution chart, NEC ranks #401 out of 2623 companies for 3-Year ROIIC %. This places NEC in the top 15% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 5.34. NEC's value of 68.68 is 1186.1% above this benchmark. While the company's 10-year median is 14.96 vs. the industry median of 5.34, NEC 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 a Software company?
The median 3-Year ROIIC % among Software companies is 5.34, based on 2,623 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. NEC's current 3-Year ROIIC % of 68.68 is 1186.1% 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 NEC and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NEC's current 3-Year ROIIC % is 68.68, which is 359% above median its own 10-year median of 14.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEC stock overvalued right now?
Based on GuruFocus' analysis, NEC (NECPY) is currently considered Significantly Overvalued. The stock's GF Value™ is $9.26, compared to a current price of $13.50 — trading 45.8% above its estimated fair value. The current 3-Year ROIIC % is 68.68, which is 359% above median its 10-year median of 14.96 and 1186.1% above the Software industry median of 5.34. NEC's overall GF Score™ is 62/100. 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 NEC (NECPY), the current 3-Year ROIIC % is 68.68 as of Mar. 2026. 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 NEC (NECPY) Overvalued in 2026?
Based on GuruFocus' analysis, NEC stock appears to be overvalued.
The current stock price of $13.50 is trading 45.8% above its estimated GF Value™ of $9.26.
GuruFocus considers NEC to be Significantly Overvalued.
Key valuation signals for NECPY:
3-Year ROIIC %: 68.68 (359% above median its 10-year median of 14.96)
GF Value™: $9.26 vs. price of $13.50 (45.8% above fair value)
Industry Position: 1186.1% above the Software median (#401 of 2623)
No single metric tells the full story. See the NECPY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NEC Corp is engaged in IT services, networks, social infrastructure, and solutions. The company operates through three segments: IT Services, Social Infrastructure, and Others. The IT Services segment provides system integration, consulting, maintenance, outsourcing, cloud services, system equipment, and software services. The Social Infrastructure segment offers network infrastructure, including core networks, mobile base stations, optical transmission systems, and marine systems, along with telecom software, OSS/BSS solutions, aerospace and defense system integration, and maintenance. The Others segment covers the development, manufacturing, and sales of system equipment. It generates the majority of its revenue from the IT Services segment.
62GF Score
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