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TextMagic ASOTSE:MAGIC +2.03%57 3-Year ROIIC % is 13.15 as of Dec. 2025, which is at its 10-year median of 13.15. GuruFocus rates OTSE:MAGIC with a GF Score™ of 57/100 and a GF Value™ of €3.78 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,621 Software companies, TextMagic AS ranks better than 61.2% 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.
TextMagic AS's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 13.15%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for TextMagic AS's 3-Year ROIIC % or its related term are showing as below:
OTSE:MAGIC's 3-Year ROIIC % is ranked better than 61.2% of 2621
companies
in the Software industry
Industry Median: 5.33
vs OTSE:MAGIC: 13.15
TextMagic AS (OTSE:MAGIC) 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.
TextMagic AS 3-Year ROIIC % Related Terms
TextMagic AS 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for TextMagic AS'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.
OTSE:MAGIC vs QH, SHOP, UBER: 3-Year ROIIC % Comparison
For the Software - Application subindustry, TextMagic AS'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.
TextMagic AS 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, TextMagic AS's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where TextMagic AS's 3-Year ROIIC % falls into.
TextMagic AS'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**
=
( -0.504 (Dec. 2025) - 2.7202672 (Dec. 2022) )
/
( 30.186 (Dec. 2025) - 54.711 (Dec. 2022) )
=
-3.2242672
/
-24.525
=
13.15%***
* 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.
TextMagic AS (OTSE:MAGIC) has a 3-Year ROIIC % of 13.15 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 TextMagic AS and its competitors. This is near median its historical median of 13.15. Over the past decade, TextMagic AS's 3-Year ROIIC % has ranged from 13.15 to 13.15. According to the industry distribution chart, TextMagic AS ranks #1017 out of 2621 companies in the Software industry, placing it in the top 38.8%.
Is TextMagic AS's 3-Year ROIIC % too high?
TextMagic AS's current 3-Year ROIIC % of 13.15 is near median its 10-year median of 13.15. Over the past 10 years, this metric has ranged from a low of 13.15 to a high of 13.15. The Software industry median 3-Year ROIIC % is 5.33. TextMagic AS's value of 13.15 is 146.7% above this industry median. Based on the distribution chart, TextMagic AS ranks #1017 out of 2621 companies in the Software industry, which is above the industry midpoint. Overall, TextMagic AS has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does TextMagic AS's 3-Year ROIIC % compare to QH and SHOP?
According to the Software industry distribution chart, TextMagic AS ranks #1017 out of 2621 companies for 3-Year ROIIC %. This puts TextMagic AS in the upper half of its industry. The industry median 3-Year ROIIC % is 5.33. TextMagic AS's value of 13.15 is 146.7% above this benchmark. Historically, TextMagic AS's own 3-Year ROIIC % has ranged from 13.15 to 13.15 over the past decade. While the company's 10-year median is 13.15 vs. the industry median of 5.33, TextMagic AS 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 5.33, based on 2,621 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. TextMagic AS's current 3-Year ROIIC % of 13.15 is 146.7% 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 TextMagic AS and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TextMagic AS's current 3-Year ROIIC % is 13.15, which is near median its own 10-year median of 13.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TextMagic AS stock overvalued right now?
Based on GuruFocus' analysis, TextMagic AS (OTSE:MAGIC) is currently considered Possible Value Trap. The stock's GF Value™ is €3.78, compared to a current price of €1.76 — trading 53.4% below its estimated fair value. The current 3-Year ROIIC % is 13.15, which is near median its 10-year median of 13.15 and 146.7% above the Software industry median of 5.33. TextMagic AS's overall GF Score™ is 57/100 with 3 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 TextMagic AS (OTSE:MAGIC), the current 3-Year ROIIC % is 13.15 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 TextMagic AS (OTSE:MAGIC) Overvalued in 2026?
Based on GuruFocus' analysis, TextMagic AS stock appears to be undervalued.
The current stock price of €1.76 is trading 53.4% below its estimated GF Value™ of €3.78.
GuruFocus considers TextMagic AS to be Possible Value Trap.
Key valuation signals for OTSE:MAGIC:
3-Year ROIIC %: 13.15 (near median its 10-year median of 13.15)
GF Value™: €3.78 vs. price of €1.76 (53.4% below fair value)
Industry Position: 146.7% above the Software median (#1017 of 2621)
No single metric tells the full story. See the OTSE:MAGIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TextMagic AS is a text messaging company that helps businesses engage with customers. The Group's activities include the management and development of software products. The company operates mainly in the U.S., the U.K., Canada, Australia, and other countries. TextMagic enables companies to transform customer experiences through its text messaging marketing software, which can be used to send notifications, alerts, reminders, confirmations, and SMS marketing campaigns anytime, anywhere. Its product and service lines include text messaging services, which generate maximum revenue, virtual mobile number services, other TextMagic platform services, and the Voog.com platform. The company derives the majority of its revenue from the United States.
57GF Score
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