Alfa Laval ABCHIX:ALFAS 94 5-Year ROIIC % is 13.83 as of Dec. 2025. GuruFocus rates CHIX:ALFAS with a GF Score™ of 94/100 and a GF Value™ of kr475.67 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 2,787 Industrial Products companies, Alfa Laval AB ranks better than 70.36% on this metric.
5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Alfa Laval AB's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 13.83%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Alfa Laval AB's 5-Year ROIIC % or its related term are showing as below:
CHIX:ALFAs's 5-Year ROIIC % is ranked better than 70.36% of 2787
companies
in the Industrial Products industry
Industry Median: 4.53
vs CHIX:ALFAs: 13.83
Alfa Laval AB (CHIX:ALFAs) 5-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.
Alfa Laval AB 5-Year ROIIC % Related Terms
Alfa Laval AB 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Alfa Laval AB's 5-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.
CHIX:ALFAS vs GEV, ETN, PH: 5-Year ROIIC % Comparison
For the Specialty Industrial Machinery subindustry, Alfa Laval AB's 5-Year ROIIC %, along with its competitors' market caps and 5-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.
Alfa Laval AB 5-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Alfa Laval AB's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Alfa Laval AB's 5-Year ROIIC % falls into.
Alfa Laval AB's 5-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 8734.5183 (Dec. 2025) - 3997.8694 (Dec. 2020) )
/
( 83671 (Dec. 2025) - 49434 (Dec. 2020) )
=
4736.6489
/
34237
=
13.83%***
* 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 5-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.
Alfa Laval AB (CHIX:ALFAS) has a 5-Year ROIIC % of 13.83 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Alfa Laval AB and its competitors. According to the industry distribution chart, Alfa Laval AB ranks #826 out of 2787 companies in the Industrial Products industry, placing it in the top 29.6%.
Is Alfa Laval AB's 5-Year ROIIC % too high?
Alfa Laval AB's current 5-Year ROIIC % is 13.83. The Industrial Products industry median 5-Year ROIIC % is 4.53. Alfa Laval AB's value of 13.83 is 205.3% above this industry median. Based on the distribution chart, Alfa Laval AB ranks #826 out of 2787 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Alfa Laval AB has a GF Score™ of 94/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Alfa Laval AB's 5-Year ROIIC % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Alfa Laval AB ranks #826 out of 2787 companies for 5-Year ROIIC %. This puts Alfa Laval AB in the upper half of its industry. The industry median 5-Year ROIIC % is 4.53. Alfa Laval AB's value of 13.83 is 205.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for an Industrial Products company?
The median 5-Year ROIIC % among Industrial Products companies is 4.53, based on 2,787 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alfa Laval AB's current 5-Year ROIIC % of 13.83 is 205.3% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Alfa Laval AB and its competitors. For the Industrial Products industry, the median 5-Year ROIIC % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alfa Laval AB's current 5-Year ROIIC % is 13.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alfa Laval AB stock overvalued right now?
Based on GuruFocus' analysis, Alfa Laval AB (CHIX:ALFAS) is currently considered Modestly Overvalued. The stock's GF Value™ is kr475.67, compared to a current price of kr573.80 — trading 20.6% above its estimated fair value. The current 5-Year ROIIC % is 13.83 and 205.3% above the Industrial Products industry median of 4.53. Alfa Laval AB's overall GF Score™ is 94/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Alfa Laval AB (CHIX:ALFAS), the current 5-Year ROIIC % is 13.83 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 Alfa Laval AB (CHIX:ALFAS) Overvalued in 2026?
Based on GuruFocus' analysis, Alfa Laval AB stock appears to be overvalued.
The current stock price of kr573.80 is trading 20.6% above its estimated GF Value™ of kr475.67.
GuruFocus considers Alfa Laval AB to be Modestly Overvalued.
Key valuation signals for CHIX:ALFAS:
5-Year ROIIC %: 13.83
GF Value™: kr475.67 vs. price of kr573.80 (20.6% above fair value)
Industry Position: 205.3% above the Industrial Products median (#826 of 2787)
No single metric tells the full story. See the CHIX:ALFAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alfa Laval is a leading manufacturer of highly engineered equipment, primarily in the areas of separation, heat transfer, and fluid handling, used by a diverse range of customers spanning the food, water, energy, and marine industries. These products play a key role in a number of industrial processes, and Alfa Laval enjoys a leading position in all three areas. Alfa Laval's history stretches back 140 years to when its first separator was developed. The company is listed on the Stockholm stock exchange.
94GF Score
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