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.
Smith Micro Software's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -17.37%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Smith Micro Software's 3-Year ROIIC % or its related term are showing as below:
SMSI's 3-Year ROIIC % is ranked worse than 75.64% of 2623
companies
in the Software industry
Industry Median: 5.22
vs SMSI: -17.37
Smith Micro Software (NAS:SMSI) 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.
Smith Micro Software 3-Year ROIIC % Related Terms
Smith Micro Software 3-Year ROIIC % Historical Data
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The historical data trend for Smith Micro Software'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.
SMSI vs TRSO, CINGF, KNRX: 3-Year ROIIC % Comparison
For the Software - Application subindustry, Smith Micro Software'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.
Smith Micro Software 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Smith Micro Software's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Smith Micro Software's 3-Year ROIIC % falls into.
Smith Micro Software'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**
=
( -19.1959604 (Dec. 2025) - -30.927 (Dec. 2022) )
/
( 23.136 (Dec. 2025) - 90.683 (Dec. 2022) )
=
11.7310396
/
-67.547
=
-17.37%***
* 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.
Smith Micro Software (SMSI) has a 3-Year ROIIC % of -17.37 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 Smith Micro Software and its competitors. According to the industry distribution chart, Smith Micro Software ranks #1984 out of 2623 companies in the Software industry, placing it in the top 75.6%.
Is Smith Micro Software's 3-Year ROIIC % too high?
Smith Micro Software's current 3-Year ROIIC % is -17.37. Based on the distribution chart, Smith Micro Software ranks #1984 out of 2623 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Smith Micro Software has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smith Micro Software's 3-Year ROIIC % compare to TRSO and CINGF?
According to the Software industry distribution chart, Smith Micro Software ranks #1984 out of 2623 companies for 3-Year ROIIC %. This places Smith Micro Software in the lower half of its industry. The industry median 3-Year ROIIC % is 5.22. 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 5.22, based on 2,623 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 Smith Micro Software and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith Micro Software's current 3-Year ROIIC % is -17.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smith Micro Software stock overvalued right now?
Based on GuruFocus' analysis, Smith Micro Software (SMSI) is currently considered Modestly Overvalued. The stock's GF Value™ is $2.38, compared to a current price of $2.66 — trading 11.8% above its estimated fair value. The current 3-Year ROIIC % is -17.37. Smith Micro Software's overall GF Score™ is 65/100 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 Smith Micro Software (SMSI), the current 3-Year ROIIC % is -17.37 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 Smith Micro Software (SMSI) Overvalued in 2026?
Based on GuruFocus' analysis, Smith Micro Software stock appears to be overvalued.
The current stock price of $2.66 is trading 11.8% above its estimated GF Value™ of $2.38.
GuruFocus considers Smith Micro Software to be Modestly Overvalued.
Key valuation signals for SMSI:
3-Year ROIIC %: -17.37
GF Value™: $2.38 vs. price of $2.66 (11.8% above fair value)
No single metric tells the full story. See the SMSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smith Micro Software Inc provides software solutions that simplify and enhance the mobile experience to some of the wireless service providers around the globe. The company's solutions include SafePath product suite provides comprehensive and easy-to-use tools to protect family digital lifestyles and manage connected devices both inside and outside the home; CommSuite premium messaging platform helps mobile service providers deliver a next-generation voicemail experience to mobile subscribers, while monetizing a legacy cost-center; and ViewSpot its retail display management platform provided wireless carriers and retailers with a way to bring powerful on-screen, interactive demos to life. It operates in single segment: Wireless.
65GF Score
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