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.
Rolls-Royce Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 56.05%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Rolls-Royce Holdings's 3-Year ROIIC % or its related term are showing as below:
RYCEF's 3-Year ROIIC % is ranked better than 86.6% of 321
companies
in the Aerospace & Defense industry
Industry Median: 3.84
vs RYCEF: 56.05
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.
Rolls-Royce Holdings 3-Year ROIIC % Related Terms
Rolls-Royce Holdings 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Rolls-Royce 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.
For the Aerospace & Defense subindustry, Rolls-Royce 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.
Rolls-Royce Holdings 3-Year ROIIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings'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.
Rolls-Royce Holdings (RYCEF) has a 3-Year ROIIC % of 56.05 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 Rolls-Royce Holdings and its competitors. According to the industry distribution chart, Rolls-Royce Holdings ranks #43 out of 321 companies in the Aerospace & Defense industry, placing it in the top 13.4%.
Is Rolls-Royce Holdings' 3-Year ROIIC % too high?
Rolls-Royce Holdings' current 3-Year ROIIC % is 56.05. The Aerospace & Defense industry median 3-Year ROIIC % is 3.84. Rolls-Royce Holdings' value of 56.05 is 1359.6% above this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #43 out of 321 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Rolls-Royce Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rolls-Royce Holdings' 3-Year ROIIC % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #43 out of 321 companies for 3-Year ROIIC %. This places Rolls-Royce Holdings in the top 13% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.84. Rolls-Royce Holdings' value of 56.05 is 1359.6% 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 an Aerospace & Defense company?
The median 3-Year ROIIC % among Aerospace & Defense companies is 3.84, based on 321 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. Rolls-Royce Holdings's current 3-Year ROIIC % of 56.05 is 1359.6% 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 Rolls-Royce Holdings and its competitors. For the Aerospace & Defense industry, the median 3-Year ROIIC % is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current 3-Year ROIIC % is 56.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rolls-Royce Holdings stock overvalued right now?
Based on GuruFocus' analysis, Rolls-Royce Holdings (RYCEF) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.23, compared to a current price of $19.68 — trading 139.1% above its estimated fair value. The current 3-Year ROIIC % is 56.05 and 1359.6% above the Aerospace & Defense industry median of 3.84. Rolls-Royce Holdings' overall GF Score™ is 69/100 with 5 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 Rolls-Royce Holdings (RYCEF), the current 3-Year ROIIC % is 56.05 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 Rolls-Royce Holdings (RYCEF) Overvalued in 2026?
Based on GuruFocus' analysis, Rolls-Royce Holdings stock appears to be overvalued.
The current stock price of $19.68 is trading 139.1% above its estimated GF Value™ of $8.23.
GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.
Key valuation signals for RYCEF:
3-Year ROIIC %: 56.05
GF Value™: $8.23 vs. price of $19.68 (139.1% above fair value)
Industry Position: 1359.6% above the Aerospace & Defense median (#43 of 321)
No single metric tells the full story. See the RYCEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.
69GF Score
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