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.
Erayak Power Solution Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -25.20%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Erayak Power Solution Group's 3-Year ROIIC % or its related term are showing as below:
RAYA's 3-Year ROIIC % is ranked worse than 80.86% of 2936
companies
in the Industrial Products industry
Industry Median: 3.395
vs RAYA: -25.20
Erayak Power Solution Group (NAS:RAYA) 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.
Erayak Power Solution Group 3-Year ROIIC % Related Terms
Erayak Power Solution Group 3-Year ROIIC % Historical Data
* 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.
RAYA vs LNKS, CCTG, ELPW: 3-Year ROIIC % Comparison
For the Electrical Equipment & Parts subindustry, Erayak Power Solution Group'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.
Erayak Power Solution Group 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Erayak Power Solution Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Erayak Power Solution Group's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -1.452 (Dec. 2025) - 3.7859703 (Dec. 2022) )
/
( 44.599 (Dec. 2025) - 23.816 (Dec. 2022) )
=
-5.2379703
/
20.783
=
-25.20%***
* 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.
Erayak Power Solution Group (RAYA) has a 3-Year ROIIC % of -25.20 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 Erayak Power Solution Group and its competitors. According to the industry distribution chart, Erayak Power Solution Group ranks #2374 out of 2936 companies in the Industrial Products industry, placing it in the top 80.9%.
Is Erayak Power Solution Group's 3-Year ROIIC % too high?
Erayak Power Solution Group's current 3-Year ROIIC % is -25.20. Based on the distribution chart, Erayak Power Solution Group ranks #2374 out of 2936 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Erayak Power Solution Group has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Erayak Power Solution Group's 3-Year ROIIC % compare to LNKS and CCTG?
According to the Industrial Products industry distribution chart, Erayak Power Solution Group ranks #2374 out of 2936 companies for 3-Year ROIIC %. This places Erayak Power Solution Group in the lower half of its industry. The industry median 3-Year ROIIC % is 3.40. 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 3.40, based on 2,936 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 Erayak Power Solution Group and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Erayak Power Solution Group's current 3-Year ROIIC % is -25.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Erayak Power Solution Group stock overvalued right now?
Based on GuruFocus' analysis, Erayak Power Solution Group (RAYA) is currently considered Possible Value Trap. The stock's GF Value™ is $2,179.24, compared to a current price of $2.76 — trading 99.9% below its estimated fair value. The current 3-Year ROIIC % is -25.20. Erayak Power Solution Group's overall GF Score™ is 54/100 with 8 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 Erayak Power Solution Group (RAYA), the current 3-Year ROIIC % is -25.20 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 Erayak Power Solution Group (RAYA) Overvalued in 2026?
Based on GuruFocus' analysis, Erayak Power Solution Group stock appears to be undervalued.
The current stock price of $2.76 is trading 99.9% below its estimated GF Value™ of $2,179.24.
GuruFocus considers Erayak Power Solution Group to be Possible Value Trap.
Key valuation signals for RAYA:
3-Year ROIIC %: -25.20
GF Value™: $2,179.24 vs. price of $2.76 (99.9% below fair value)
No single metric tells the full story. See the RAYA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Erayak Power Solution Group Inc is engaged in the manufacturing, research and development (R&D), and wholesale and retail of power solution products. The group focuses on manufacturing new energy storage and inverter devices. Its product portfolio includes sine wave and off-grid inverters, inverters and gasoline generators, battery and smart chargers, and custom-designed products. The products are used principally in agricultural and industrial vehicles, recreational vehicles (RVs), electrical appliances, and outdoor living products. The company generates the majority of its revenue from Inverters. The company generates revenue from five main markets, which are China, Poland, Mexico, the U.K., and Portugal. It derives maximum revenue from China.
54GF Score
Get the complete analysis for RAYA
3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
RAYA has been successfully added to your 
