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Ermenegildo Zegna NVZGN -0.50%83 3-Year ROIIC % is 3.64 as of Dec. 2025, which is 91% below its 10-year median of 39.75. GuruFocus rates ZGN with a GF Score™ of 83/100 and a GF Value™ of $11.29 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,013 Manufacturing - Apparel & Accessories companies, Ermenegildo Zegna NV ranks better than 55.48% 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.
Ermenegildo Zegna NV's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 3.64%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Ermenegildo Zegna NV's 3-Year ROIIC % or its related term are showing as below:
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.
Ermenegildo Zegna NV 3-Year ROIIC % Related Terms
Ermenegildo Zegna NV 3-Year ROIIC % Historical Data
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The historical data trend for Ermenegildo Zegna NV'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.
For the Apparel Manufacturing subindustry, Ermenegildo Zegna NV'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.
Ermenegildo Zegna NV 3-Year ROIIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ermenegildo Zegna NV's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Ermenegildo Zegna NV'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.
Ermenegildo Zegna NV (ZGN) has a 3-Year ROIIC % of 3.64 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 Ermenegildo Zegna NV and its competitors. This is 91% below median its historical median of 39.75. According to the industry distribution chart, Ermenegildo Zegna NV ranks #451 out of 1013 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 44.5%.
Is Ermenegildo Zegna NV's 3-Year ROIIC % too high?
Ermenegildo Zegna NV's current 3-Year ROIIC % of 3.64 is 91% below median its 10-year median of 39.75. The Manufacturing - Apparel & Accessories industry median 3-Year ROIIC % is 1.52. Ermenegildo Zegna NV's value of 3.64 is 139.5% above this industry median. Based on the distribution chart, Ermenegildo Zegna NV ranks #451 out of 1013 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Ermenegildo Zegna NV has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ermenegildo Zegna NV's 3-Year ROIIC % compare to PVH and COLM?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Ermenegildo Zegna NV ranks #451 out of 1013 companies for 3-Year ROIIC %. This puts Ermenegildo Zegna NV in the upper half of its industry. The industry median 3-Year ROIIC % is 1.52. Ermenegildo Zegna NV's value of 3.64 is 139.5% above this benchmark. While the company's 10-year median is 39.75 vs. the industry median of 1.52, Ermenegildo Zegna NV 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 Manufacturing - Apparel & Accessories company?
The median 3-Year ROIIC % among Manufacturing - Apparel & Accessories companies is 1.52, based on 1,013 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. Ermenegildo Zegna NV's current 3-Year ROIIC % of 3.64 is 139.5% 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 Ermenegildo Zegna NV and its competitors. For the Manufacturing - Apparel & Accessories industry, the median 3-Year ROIIC % is 1.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ermenegildo Zegna NV's current 3-Year ROIIC % is 3.64, which is 91% below median its own 10-year median of 39.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ermenegildo Zegna NV stock overvalued right now?
Based on GuruFocus' analysis, Ermenegildo Zegna NV (ZGN) is currently considered Modestly Overvalued. The stock's GF Value™ is $11.29, compared to a current price of $13.81 — trading 22.3% above its estimated fair value. The current 3-Year ROIIC % is 3.64, which is 91% below median its 10-year median of 39.75 and 139.5% above the Manufacturing - Apparel & Accessories industry median of 1.52. Ermenegildo Zegna NV's overall GF Score™ is 83/100 with 8 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 Ermenegildo Zegna NV (ZGN), the current 3-Year ROIIC % is 3.64 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 Ermenegildo Zegna NV (ZGN) Overvalued in 2026?
Based on GuruFocus' analysis, Ermenegildo Zegna NV stock appears to be overvalued.
The current stock price of $13.81 is trading 22.3% above its estimated GF Value™ of $11.29.
GuruFocus considers Ermenegildo Zegna NV to be Modestly Overvalued.
Key valuation signals for ZGN:
3-Year ROIIC %: 3.64 (91% below median its 10-year median of 39.75)
GF Value™: $11.29 vs. price of $13.81 (22.3% above fair value)
Industry Position: 139.5% above the Manufacturing - Apparel & Accessories median (#451 of 1013)
No single metric tells the full story. See the ZGN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ermenegildo Zegna NV designs creates, and distributes luxury menswear and accessories under the Zegna brand, as well as womenswear, menswear, and accessories under the Thom Browne brand. The company operates in three segments: the Zegna segment (comprising three product lines: Zegna Branded Products, Textile, and Third Party Brands); the Thom Browne segment, and the Tom Ford Fashion segment. The company generates the majority of revenue from the Zegna segment.
83GF Score
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