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User LocalTSE:3984 +0.33%97 3-Year ROIIC % is 127.80 as of Jun. 2025, which is 29% above its 10-year median of 99.18. GuruFocus rates TSE:3984 with a GF Score™ of 97/100 and a GF Value™ of 円2,131.23 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,622 Software companies, User Local ranks better than 90.92% 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.
User Local's 3-Year ROIIC % for the quarter that ended in Jun. 2025 was 127.80%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for User Local's 3-Year ROIIC % or its related term are showing as below:
TSE:3984's 3-Year ROIIC % is ranked better than 90.92% of 2622
companies
in the Software industry
Industry Median: 5.33
vs TSE:3984: 127.80
User Local (TSE:3984) 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.
User Local 3-Year ROIIC % Related Terms
User Local 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for User Local'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:3984 vs IBM, ACN, FISV: 3-Year ROIIC % Comparison
For the Information Technology Services subindustry, User Local'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.
User Local 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, User Local's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where User Local'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.
User Local (TSE:3984) has a 3-Year ROIIC % of 127.80 as of Jun. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on User Local and its competitors. This is 29% above median its historical median of 99.18. Over the past decade, User Local's 3-Year ROIIC % has ranged from 71.16 to 134.20. According to the industry distribution chart, User Local ranks #238 out of 2622 companies in the Software industry, placing it in the top 9.1%.
Is User Local's 3-Year ROIIC % too high?
User Local's current 3-Year ROIIC % of 127.80 is 29% above median its 10-year median of 99.18. Over the past 10 years, this metric has ranged from a low of 71.16 to a high of 134.20. The Software industry median 3-Year ROIIC % is 5.33. User Local's value of 127.80 is 2297.7% above this industry median. Based on the distribution chart, User Local ranks #238 out of 2622 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, User Local has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does User Local's 3-Year ROIIC % compare to IBM and ACN?
According to the Software industry distribution chart, User Local ranks #238 out of 2622 companies for 3-Year ROIIC %. This places User Local in the top 9% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 5.33. User Local's value of 127.80 is 2297.7% above this benchmark. Historically, User Local's own 3-Year ROIIC % has ranged from 71.16 to 134.20 over the past decade. While the company's 10-year median is 99.18 vs. the industry median of 5.33, User Local 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 2,622 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. User Local's current 3-Year ROIIC % of 127.80 is 2297.7% 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 User Local 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. User Local's current 3-Year ROIIC % is 127.80, which is 29% above median its own 10-year median of 99.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is User Local stock overvalued right now?
Based on GuruFocus' analysis, User Local (TSE:3984) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,131.23, compared to a current price of 円1,801.00 — trading 15.5% below its estimated fair value. The current 3-Year ROIIC % is 127.80, which is 29% above median its 10-year median of 99.18 and 2297.7% above the Software industry median of 5.33. User Local's overall GF Score™ is 97/100 with 1 warning sign 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 User Local (TSE:3984), the current 3-Year ROIIC % is 127.80 as of Jun. 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 User Local (TSE:3984) Overvalued in 2026?
Based on GuruFocus' analysis, User Local stock appears to be undervalued.
The current stock price of 円1,801.00 is trading 15.5% below its estimated GF Value™ of 円2,131.23.
GuruFocus considers User Local to be Modestly Undervalued.
Key valuation signals for TSE:3984:
3-Year ROIIC %: 127.80 (29% above median its 10-year median of 99.18)
GF Value™: 円2,131.23 vs. price of 円1,801.00 (15.5% below fair value)
Industry Position: 2297.7% above the Software median (#238 of 2622)
No single metric tells the full story. See the TSE:3984 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
User Local Inc is engaged in the research and development of big data analysis system, web marketing support tool, offering media analysis tool, and managing artificial intelligence chat bot.
97GF Score
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