Sumitomo Forestry CoSMFRF 83 3-Year ROIIC % is 1.70 as of Dec. 2025, which is 75% below its 10-year median of 6.73. GuruFocus rates SMFRF with a GF Score™ of 83/100 and a GF Value™ of $13.97 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 90 Homebuilding & Construction companies, Sumitomo Forestry Co ranks better than 55.56% 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.
Sumitomo Forestry Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 1.70%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Sumitomo Forestry Co's 3-Year ROIIC % or its related term are showing as below:
SMFRF's 3-Year ROIIC % is ranked better than 55.56% of 90
companies
in the Homebuilding & Construction industry
Industry Median: -1.83
vs SMFRF: 1.70
Sumitomo Forestry Co (OTCPK:SMFRF) 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.
Sumitomo Forestry Co 3-Year ROIIC % Related Terms
Sumitomo Forestry Co 3-Year ROIIC % Historical Data
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The historical data trend for Sumitomo Forestry Co'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 Residential Construction subindustry, Sumitomo Forestry 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.
Sumitomo Forestry Co 3-Year ROIIC % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Sumitomo Forestry Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Sumitomo Forestry 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.
Sumitomo Forestry Co (SMFRF) has a 3-Year ROIIC % of 1.70 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 Sumitomo Forestry Co and its competitors. This is 75% below median its historical median of 6.73. According to the industry distribution chart, Sumitomo Forestry Co ranks #40 out of 90 companies in the Homebuilding & Construction industry, placing it in the top 44.4%.
Is Sumitomo Forestry Co's 3-Year ROIIC % too high?
Sumitomo Forestry Co's current 3-Year ROIIC % of 1.70 is 75% below median its 10-year median of 6.73. Based on the distribution chart, Sumitomo Forestry Co ranks #40 out of 90 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Sumitomo Forestry Co has a GF Score™ of 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Forestry Co's 3-Year ROIIC % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Sumitomo Forestry Co ranks #40 out of 90 companies for 3-Year ROIIC %. This puts Sumitomo Forestry Co in the upper half of its industry. 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 Homebuilding & Construction company?
A good 3-Year ROIIC % depends on the Homebuilding & Construction industry context. 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 Sumitomo Forestry Co and its competitors. Sumitomo Forestry Co's current 3-Year ROIIC % is 1.70, which is 75% below median its own 10-year median of 6.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Forestry Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Forestry Co (SMFRF) is currently considered Possible Value Trap. The stock's GF Value™ is $13.97, compared to a current price of $7.90 — trading 43.5% below its estimated fair value. The current 3-Year ROIIC % is 1.70, which is 75% below median its 10-year median of 6.73. Sumitomo Forestry Co's overall GF Score™ is 83/100 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 Sumitomo Forestry Co (SMFRF), the current 3-Year ROIIC % is 1.70 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 Sumitomo Forestry Co (SMFRF) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Forestry Co stock appears to be undervalued.
The current stock price of $7.90 is trading 43.5% below its estimated GF Value™ of $13.97.
GuruFocus considers Sumitomo Forestry Co to be Possible Value Trap.
Key valuation signals for SMFRF:
3-Year ROIIC %: 1.70 (75% below median its 10-year median of 6.73)
GF Value™: $13.97 vs. price of $7.90 (43.5% below fair value)
No single metric tells the full story. See the SMFRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Forestry Co Ltd is a Japan-based company engaged in the timber, housing, and environmental businesses. The company operates through four reportable segments: Timber Building Materials Business, Housing Business, Construction and Real Estate Business, and Resources and Environment Business. The Timber Building Materials Business purchases, manufactures, and sells timber and building materials. The Housing Business handles housing construction, renovation, and real estate brokerage. The Construction and Real Estate Business develops condominiums, apartment buildings, and commercial complexes. The Resources and Environment Business focuses on renewable energy and forestry resource operations. It generates the majority of revenue from the Construction and real estate business segment.
83GF Score
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