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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.
Palace Capital's 5-Year ROIIC % for the quarter that ended in Mar. 2025 was 2.85%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Palace Capital's 5-Year ROIIC % or its related term are showing as below:
LSE:PCA's 5-Year ROIIC % is ranked worse than 62.1% of 628
companies
in the REITs industry
Industry Median: 4.14
vs LSE:PCA: 2.85
Palace Capital (LSE:PCA) 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.
Palace Capital 5-Year ROIIC % Related Terms
Palace Capital 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Palace Capital'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.
LSE:PCA vs VICI, WPC, BNL: 5-Year ROIIC % Comparison
For the REIT - Diversified subindustry, Palace Capital'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.
Palace Capital 5-Year ROIIC % vs REITs Industry
For the REITs industry and Real Estate sector, Palace Capital's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Palace Capital's 5-Year ROIIC % falls into.
Palace Capital's 5-Year ROIIC % for the quarter that ended in Mar. 2025 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 2.135 (Mar. 2025) - 8.6768116 (Mar. 2020) )
/
( 53.033 (Mar. 2025) - 282.813 (Mar. 2020) )
=
-6.5418116
/
-229.78
=
2.85%***
* 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.
Palace Capital (LSE:PCA) has a 5-Year ROIIC % of 2.85 as of Mar. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Palace Capital and its competitors. According to the industry distribution chart, Palace Capital ranks #390 out of 628 companies in the REITs industry, placing it in the top 62.1%.
Is Palace Capital's 5-Year ROIIC % too high?
Palace Capital's current 5-Year ROIIC % is 2.85. The REITs industry median 5-Year ROIIC % is 4.14. Palace Capital's value of 2.85 is 31.2% below this industry median. Based on the distribution chart, Palace Capital ranks #390 out of 628 companies in the REITs industry, which is below the industry midpoint. Overall, Palace Capital has a GF Score™ of 60/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palace Capital's 5-Year ROIIC % compare to VICI and WPC?
According to the REITs industry distribution chart, Palace Capital ranks #390 out of 628 companies for 5-Year ROIIC %. This places Palace Capital in the lower half of its industry. The industry median 5-Year ROIIC % is 4.14. Palace Capital's value of 2.85 is 31.2% below 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 a REITs company?
The median 5-Year ROIIC % among REITs companies is 4.14, based on 628 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. Palace Capital's current 5-Year ROIIC % of 2.85 is 31.2% below 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 Palace Capital and its competitors. For the REITs industry, the median 5-Year ROIIC % is 4.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palace Capital's current 5-Year ROIIC % is 2.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palace Capital stock overvalued right now?
Based on GuruFocus' analysis, Palace Capital (LSE:PCA) is currently considered Modestly Overvalued. The stock's GF Value™ is £1.46, compared to a current price of £1.83 — trading 25.3% above its estimated fair value. The current 5-Year ROIIC % is 2.85 and 31.2% below the REITs industry median of 4.14. Palace Capital's overall GF Score™ is 60/100 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 Palace Capital (LSE:PCA), the current 5-Year ROIIC % is 2.85 as of Mar. 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 Palace Capital (LSE:PCA) Overvalued in 2026?
Based on GuruFocus' analysis, Palace Capital stock appears to be overvalued.
The current stock price of £1.83 is trading 25.3% above its estimated GF Value™ of £1.46.
GuruFocus considers Palace Capital to be Modestly Overvalued.
Key valuation signals for LSE:PCA:
5-Year ROIIC %: 2.85
GF Value™: £1.46 vs. price of £1.83 (25.3% above fair value)
Industry Position: 31.2% below the REITs median (#390 of 628)
No single metric tells the full story. See the LSE:PCA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palace Capital PLC is a property investment company. The Company's principal activity is to invest in commercial real estate in the UK. Its portfolio includes investment properties throughout England, predominantly regional investments outside London, and a diverse portfolio of commercial buildings. The company generates revenue in the form of property income and represents the value of accrued charges under operating leases for rental of the Group's investment properties. Its only reportable segment is an Investment property. The company's properties include Hudson House, York; Fraser House, Staines, Milton Keynes, and Midsummer Boulevard.
60GF Score
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