Roche Holding AGXSWX:RO -0.47%77 3-Year ROIIC % is 7.28 as of Dec. 2025, which is 39% below its 10-year median of 11.91. GuruFocus rates XSWX:RO with a GF Score™ of 77/100 and a GF Value™ of CHF269.42 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 941 Drug Manufacturers companies, Roche Holding AG ranks better than 56.22% 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.
Roche Holding AG's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 7.28%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Roche Holding AG's 3-Year ROIIC % or its related term are showing as below:
XSWX:RO's 3-Year ROIIC % is ranked better than 56.22% of 941
companies
in the Drug Manufacturers industry
Industry Median: 3.7
vs XSWX:RO: 7.28
Roche Holding AG (XSWX:RO) 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.
Roche Holding AG 3-Year ROIIC % Related Terms
Roche Holding AG 3-Year ROIIC % Historical Data
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The historical data trend for Roche Holding AG'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.
XSWX:RO vs LLY, JNJ, ABBV: 3-Year ROIIC % Comparison
For the Drug Manufacturers - General subindustry, Roche Holding AG'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.
Roche Holding AG 3-Year ROIIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Roche Holding AG's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Roche Holding AG'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.
Roche Holding AG (XSWX:RO) has a 3-Year ROIIC % of 7.28 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 Roche Holding AG and its competitors. This is 39% below median its historical median of 11.91. According to the industry distribution chart, Roche Holding AG ranks #412 out of 941 companies in the Drug Manufacturers industry, placing it in the top 43.8%.
Is Roche Holding AG's 3-Year ROIIC % too high?
Roche Holding AG's current 3-Year ROIIC % of 7.28 is 39% below median its 10-year median of 11.91. The Drug Manufacturers industry median 3-Year ROIIC % is 3.70. Roche Holding AG's value of 7.28 is 96.8% above this industry median. Based on the distribution chart, Roche Holding AG ranks #412 out of 941 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Roche Holding AG has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Roche Holding AG's 3-Year ROIIC % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Roche Holding AG ranks #412 out of 941 companies for 3-Year ROIIC %. This puts Roche Holding AG in the upper half of its industry. The industry median 3-Year ROIIC % is 3.70. Roche Holding AG's value of 7.28 is 96.8% above this benchmark. While the company's 10-year median is 11.91 vs. the industry median of 3.70, Roche Holding AG 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 Drug Manufacturers company?
The median 3-Year ROIIC % among Drug Manufacturers companies is 3.70, based on 941 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. Roche Holding AG's current 3-Year ROIIC % of 7.28 is 96.8% 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 Roche Holding AG and its competitors. For the Drug Manufacturers industry, the median 3-Year ROIIC % is 3.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roche Holding AG's current 3-Year ROIIC % is 7.28, which is 39% below median its own 10-year median of 11.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roche Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Roche Holding AG (XSWX:RO) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF269.42, compared to a current price of CHF342.00 — trading 26.9% above its estimated fair value. The current 3-Year ROIIC % is 7.28, which is 39% below median its 10-year median of 11.91 and 96.8% above the Drug Manufacturers industry median of 3.70. Roche Holding AG's overall GF Score™ is 77/100 with 7 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 Roche Holding AG (XSWX:RO), the current 3-Year ROIIC % is 7.28 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 Roche Holding AG (XSWX:RO) Overvalued in 2026?
Based on GuruFocus' analysis, Roche Holding AG stock appears to be overvalued.
The current stock price of CHF342.00 is trading 26.9% above its estimated GF Value™ of CHF269.42.
GuruFocus considers Roche Holding AG to be Modestly Overvalued.
Key valuation signals for XSWX:RO:
3-Year ROIIC %: 7.28 (39% below median its 10-year median of 11.91)
GF Value™: CHF269.42 vs. price of CHF342.00 (26.9% above fair value)
Industry Position: 96.8% above the Drug Manufacturers median (#412 of 941)
No single metric tells the full story. See the XSWX:RO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Roche is a Swiss biopharmaceutical and diagnostic company. The firm's bestselling pharmaceutical products include a variety of oncology therapies from acquired partner Genentech, and its diagnostics group was bolstered by the acquisition of Ventana in 2008. Oncology products account for 40% of pharmaceutical sales, and centralized and point-of-care diagnostics for two-thirds of diagnostic-related sales.
77GF Score
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