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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.
Hygon Information Technology Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 17.29%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Hygon Information Technology Co (SHSE:688041) 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.
Hygon Information Technology Co 3-Year ROIIC % Related Terms
Hygon Information Technology Co 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.
Hygon Information Technology Co 3-Year ROIIC % Chart
SHSE:688041 vs DELL, ANET, SNDK: 3-Year ROIIC % Comparison
For the Computer Hardware subindustry, Hygon Information Technology Co'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.
Hygon Information Technology Co 3-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, Hygon Information Technology Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Hygon Information Technology Co'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.
Hygon Information Technology Co (SHSE:688041) has a 3-Year ROIIC % of 17.29 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 Hygon Information Technology Co and its competitors. This is 19% below median its historical median of 21.40. Over the past decade, Hygon Information Technology Co's 3-Year ROIIC % has ranged from 15.14 to 31.11. According to the industry distribution chart, Hygon Information Technology Co ranks #739 out of 2370 companies in the Hardware industry, placing it in the top 31.2%.
Is Hygon Information Technology Co's 3-Year ROIIC % too high?
Hygon Information Technology Co's current 3-Year ROIIC % of 17.29 is 19% below median its 10-year median of 21.40. Over the past 10 years, this metric has ranged from a low of 15.14 to a high of 31.11. The Hardware industry median 3-Year ROIIC % is 2.38. Hygon Information Technology Co's value of 17.29 is 628% above this industry median. Based on the distribution chart, Hygon Information Technology Co ranks #739 out of 2370 companies in the Hardware industry, which is above the industry midpoint. Overall, Hygon Information Technology Co has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hygon Information Technology Co's 3-Year ROIIC % compare to DELL and ANET?
According to the Hardware industry distribution chart, Hygon Information Technology Co ranks #739 out of 2370 companies for 3-Year ROIIC %. This puts Hygon Information Technology Co in the upper half of its industry. The industry median 3-Year ROIIC % is 2.38. Hygon Information Technology Co's value of 17.29 is 628% above this benchmark. Historically, Hygon Information Technology Co's own 3-Year ROIIC % has ranged from 15.14 to 31.11 over the past decade. While the company's 10-year median is 21.40 vs. the industry median of 2.38, Hygon Information Technology Co 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 Hardware company?
The median 3-Year ROIIC % among Hardware companies is 2.38, based on 2,370 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. Hygon Information Technology Co's current 3-Year ROIIC % of 17.29 is 628% 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 Hygon Information Technology Co and its competitors. For the Hardware industry, the median 3-Year ROIIC % is 2.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hygon Information Technology Co's current 3-Year ROIIC % is 17.29, which is 19% below median its own 10-year median of 21.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hygon Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hygon Information Technology Co (SHSE:688041) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥242.76, compared to a current price of ¥295.75 — trading 21.8% above its estimated fair value. The current 3-Year ROIIC % is 17.29, which is 19% below median its 10-year median of 21.40 and 628% above the Hardware industry median of 2.38. Hygon Information Technology Co's overall GF Score™ is 89/100 with 4 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 Hygon Information Technology Co (SHSE:688041), the current 3-Year ROIIC % is 17.29 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 Hygon Information Technology Co (SHSE:688041) Overvalued in 2026?
Based on GuruFocus' analysis, Hygon Information Technology Co stock appears to be overvalued.
The current stock price of ¥295.75 is trading 21.8% above its estimated GF Value™ of ¥242.76.
GuruFocus considers Hygon Information Technology Co to be Modestly Overvalued.
Key valuation signals for SHSE:688041:
3-Year ROIIC %: 17.29 (19% below median its 10-year median of 21.40)
GF Value™: ¥242.76 vs. price of ¥295.75 (21.8% above fair value)
Industry Position: 628% above the Hardware median (#739 of 2370)
No single metric tells the full story. See the SHSE:688041 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hygon Information Technology Co Ltd is engaged in the research and development, design, and sales of high-end processors used in computing and storage devices such as servers and workstations. The company's products include Hygon central processing unit (CPU) and Hygon drive control unit (DCU).
89GF Score
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