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Digital ArtsTSE:2326 -0.97%85 3-Year ROIIC % is 10.51 as of Mar. 2026, which is 75% below its 10-year median of 42.88. GuruFocus rates TSE:2326 with a GF Score™ of 85/100 and a GF Value™ of 円6,155.23 (Significantly Undervalued). Among 2,623 Software companies, Digital Arts ranks better than 58.03% 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.
Digital Arts's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 10.51%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Digital Arts's 3-Year ROIIC % or its related term are showing as below:
TSE:2326's 3-Year ROIIC % is ranked better than 58.03% of 2623
companies
in the Software industry
Industry Median: 5.33
vs TSE:2326: 10.51
Digital Arts (TSE:2326) 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.
Digital Arts 3-Year ROIIC % Related Terms
Digital Arts 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Digital Arts'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.
TSE:2326 vs MSFT, ORCL, PLTR: 3-Year ROIIC % Comparison
For the Software - Infrastructure subindustry, Digital Arts'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.
Digital Arts 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Digital Arts's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Digital Arts's 3-Year ROIIC % falls into.
Digital Arts's 3-Year ROIIC % for the quarter that ended in Mar. 2026 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 3393.2152 (Mar. 2026) - 3053.3547 (Mar. 2023) )
/
( 11304 (Mar. 2026) - 8071 (Mar. 2023) )
=
339.8605
/
3233
=
10.51%***
* 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.
Digital Arts (TSE:2326) has a 3-Year ROIIC % of 10.51 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Digital Arts and its competitors. This is 75% below median its historical median of 42.88. According to the industry distribution chart, Digital Arts ranks #1101 out of 2623 companies in the Software industry, placing it in the top 42%.
Is Digital Arts' 3-Year ROIIC % too high?
Digital Arts' current 3-Year ROIIC % of 10.51 is 75% below median its 10-year median of 42.88. The Software industry median 3-Year ROIIC % is 5.33. Digital Arts' value of 10.51 is 97.2% above this industry median. Based on the distribution chart, Digital Arts ranks #1101 out of 2623 companies in the Software industry, which is above the industry midpoint. Overall, Digital Arts has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Digital Arts' 3-Year ROIIC % compare to MSFT and ORCL?
According to the Software industry distribution chart, Digital Arts ranks #1101 out of 2623 companies for 3-Year ROIIC %. This puts Digital Arts in the upper half of its industry. The industry median 3-Year ROIIC % is 5.33. Digital Arts' value of 10.51 is 97.2% above this benchmark. While the company's 10-year median is 42.88 vs. the industry median of 5.33, Digital Arts 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 Software company?
The median 3-Year ROIIC % among Software companies is 5.33, 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. Digital Arts's current 3-Year ROIIC % of 10.51 is 97.2% 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 Digital Arts and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Arts's current 3-Year ROIIC % is 10.51, which is 75% below median its own 10-year median of 42.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Arts stock overvalued right now?
Based on GuruFocus' analysis, Digital Arts (TSE:2326) is currently considered Significantly Undervalued. The stock's GF Value™ is 円6,155.23, compared to a current price of 円4,065.00 — trading 34% below its estimated fair value. The current 3-Year ROIIC % is 10.51, which is 75% below median its 10-year median of 42.88 and 97.2% above the Software industry median of 5.33. Digital Arts' overall GF Score™ is 85/100. 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 Digital Arts (TSE:2326), the current 3-Year ROIIC % is 10.51 as of Mar. 2026. 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 Digital Arts (TSE:2326) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Arts stock appears to be undervalued.
The current stock price of 円4,065.00 is trading 34% below its estimated GF Value™ of 円6,155.23.
GuruFocus considers Digital Arts to be Significantly Undervalued.
Key valuation signals for TSE:2326:
3-Year ROIIC %: 10.51 (75% below median its 10-year median of 42.88)
GF Value™: 円6,155.23 vs. price of 円4,065.00 (34% below fair value)
Industry Position: 97.2% above the Software median (#1101 of 2623)
No single metric tells the full story. See the TSE:2326 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Arts Inc develops Internet filtering software for business, private, and educational use. Its products protect users and networks from harmful Internet content and prevent inappropriate usage. Its software products are supplied to the corporate, public-sector (government ministries and agencies and schools), and consumer markets.
85GF Score
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