Laboro AI (TSE:5586) 3-Year ROIIC % : 49.40% (As of Sep. 2025) — 69% Above Median

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Director of Data and Quant Analytics at GuruFocus
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TSE:5586 Laboro AI Inc TSE:5586
53 GF Score
Price 円845.00
GF Value 円1,534.07
Valuation Significantly Undervalued
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What is Laboro AI 3-Year ROIIC %?

Laboro AI TSE:5586 +3.30% 53 3-Year ROIIC % is 49.40 as of Sep. 2025, which is 69% above its 10-year median of 29.18. GuruFocus rates TSE:5586 with a GF Score™ of 53/100 and a GF Value™ of 円1,534.07 (Significantly Undervalued). Among 2,623 Software companies, Laboro AI ranks better than 81.01% 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. Laboro AI's 3-Year ROIIC % for the quarter that ended in Sep. 2025 was 49.40%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Laboro AI's 3-Year ROIIC % or its related term are showing as below:

TSE:5586's 3-Year ROIIC % is ranked better than
81.01% of 2623 companies
in the Software industry
Industry Median: 5.33 vs TSE:5586: 49.40

Laboro AI  (TSE:5586) 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.


Laboro AI 3-Year ROIIC % Related Terms


Laboro AI 3-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for Laboro AI'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.

Laboro AI 3-Year ROIIC % Chart

Laboro AI Annual Data
Trend Sep21 Sep22 Sep23 Sep24 Sep25
3-Year ROIIC %
0.00 0.00 0.00 8.95 49.40

Laboro AI Semi-Annual Data
Sep21 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
3-Year ROIIC % Get a 7-Day Free Trial Premium Member Only 0.00 8.95 0.00 49.40 0.00

TSE:5586 vs MSFT, ORCL, PLTR: 3-Year ROIIC % Comparison

For the Software - Infrastructure subindustry, Laboro AI'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.


Laboro AI 3-Year ROIIC % vs Software Industry

For the Software industry and Technology sector, Laboro AI's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Laboro AI's 3-Year ROIIC % falls into.


TSE:5586
53GF Score
Laboro AI Inc TSE:5586
3-Year ROIIC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Laboro AI 3-Year ROIIC % Calculation

Laboro AI's 3-Year ROIIC % for the quarter that ended in Sep. 2025 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 130.6174651 (Sep. 2025) - -39.3949908 (Sep. 2022) )/( 675.114 (Sep. 2025) - 330.952 (Sep. 2022) )
=170.0124559/344.162
=49.40%***

* 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.

Frequently Asked Questions Learn more about 3-Year ROIIC % →
What does a 3-Year ROIIC % of 49.40 mean?
Laboro AI (TSE:5586) has a 3-Year ROIIC % of 49.40 as of Sep. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Laboro AI and its competitors. This is 69% above median its historical median of 29.18. Over the past decade, Laboro AI's 3-Year ROIIC % has ranged from 8.95 to 49.40. According to the industry distribution chart, Laboro AI ranks #498 out of 2623 companies in the Software industry, placing it in the top 19%.
Is Laboro AI's 3-Year ROIIC % too high?
Laboro AI's current 3-Year ROIIC % of 49.40 is 69% above median its 10-year median of 29.18. Over the past 10 years, this metric has ranged from a low of 8.95 to a high of 49.40. The Software industry median 3-Year ROIIC % is 5.33. Laboro AI's value of 49.40 is 826.8% above this industry median. Based on the distribution chart, Laboro AI ranks #498 out of 2623 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Laboro AI has a GF Score™ of 53/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Laboro AI's 3-Year ROIIC % compare to MSFT and ORCL?
According to the Software industry distribution chart, Laboro AI ranks #498 out of 2623 companies for 3-Year ROIIC %. This places Laboro AI in the top 19% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 5.33. Laboro AI's value of 49.40 is 826.8% above this benchmark. Historically, Laboro AI's own 3-Year ROIIC % has ranged from 8.95 to 49.40 over the past decade. While the company's 10-year median is 29.18 vs. the industry median of 5.33, Laboro AI 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. Laboro AI's current 3-Year ROIIC % of 49.40 is 826.8% 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 Laboro AI 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. Laboro AI's current 3-Year ROIIC % is 49.40, which is 69% above median its own 10-year median of 29.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laboro AI stock overvalued right now?
Based on GuruFocus' analysis, Laboro AI (TSE:5586) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,534.07, compared to a current price of 円845.00 — trading 44.9% below its estimated fair value. The current 3-Year ROIIC % is 49.40, which is 69% above median its 10-year median of 29.18 and 826.8% above the Software industry median of 5.33. Laboro AI's overall GF Score™ is 53/100. 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 Laboro AI (TSE:5586), the current 3-Year ROIIC % is 49.40 as of Sep. 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 Laboro AI (TSE:5586) Overvalued in 2026?

Based on GuruFocus' analysis, Laboro AI stock appears to be undervalued. The current stock price of 円845.00 is trading 44.9% below its estimated GF Value™ of 円1,534.07. GuruFocus considers Laboro AI to be Significantly Undervalued.

Key valuation signals for TSE:5586:

  • 3-Year ROIIC %: 49.40 (69% above median its 10-year median of 29.18)
  • GF Value™: 円1,534.07 vs. price of 円845.00 (44.9% below fair value)
  • GF Score™: 53/100
  • Industry Position: 826.8% above the Software median (#498 of 2623)

No single metric tells the full story. See the TSE:5586 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Laboro AI Business Description

Address 11-1 Ginza 8-chome, Chuo-ku, Tokyo, JPN, 104-0061
Laboro AI Inc is a Provider of developing business solutions using artificial intelligence technology intended to connect technology and business. The company also provides consulting services related to the utilization of artificial intelligence, which include planning, introduction, and execution support for AI utilization.
53GF Score

Get the complete analysis for TSE:5586

3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円845.00
Price
円1,534.07
GF Value