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.
Frontier Group Holdings's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 4.44%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Frontier Group Holdings's 5-Year ROIIC % or its related term are showing as below:
ULCC's 5-Year ROIIC % is ranked worse than 52.56% of 879
companies
in the Transportation industry
Industry Median: 4.95
vs ULCC: 4.44
Frontier Group Holdings (NAS:ULCC) 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.
Frontier Group Holdings 5-Year ROIIC % Related Terms
Frontier Group Holdings 5-Year ROIIC % Historical Data
* 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.
ULCC vs JBLU, RJET, ALGT: 5-Year ROIIC % Comparison
For the Airlines subindustry, Frontier Group Holdings'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.
Frontier Group Holdings 5-Year ROIIC % vs Transportation Industry
For the Transportation industry and Industrials sector, Frontier Group Holdings's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Frontier Group Holdings's 5-Year ROIIC % falls into.
Frontier Group Holdings 5-Year ROIIC % Calculation
Frontier Group Holdings'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**
=
( -149 (Dec. 2025) - -337.4784 (Dec. 2020) )
/
( 7944 (Dec. 2025) - 3698 (Dec. 2020) )
=
188.4784
/
4246
=
4.44%***
* 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.
Frontier Group Holdings (ULCC) has a 5-Year ROIIC % of 4.44 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 Frontier Group Holdings and its competitors. According to the industry distribution chart, Frontier Group Holdings ranks #462 out of 879 companies in the Transportation industry, placing it in the top 52.6%.
Is Frontier Group Holdings' 5-Year ROIIC % too high?
Frontier Group Holdings' current 5-Year ROIIC % is 4.44. The Transportation industry median 5-Year ROIIC % is 4.95. Frontier Group Holdings' value of 4.44 is 10.3% below this industry median. Based on the distribution chart, Frontier Group Holdings ranks #462 out of 879 companies in the Transportation industry, which is below the industry midpoint. Overall, Frontier Group Holdings has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Frontier Group Holdings' 5-Year ROIIC % compare to JBLU and RJET?
According to the Transportation industry distribution chart, Frontier Group Holdings ranks #462 out of 879 companies for 5-Year ROIIC %. This places Frontier Group Holdings in the lower half of its industry. The industry median 5-Year ROIIC % is 4.95. Frontier Group Holdings' value of 4.44 is 10.3% 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 Transportation company?
The median 5-Year ROIIC % among Transportation companies is 4.95, based on 879 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. Frontier Group Holdings's current 5-Year ROIIC % of 4.44 is 10.3% 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 Frontier Group Holdings and its competitors. For the Transportation industry, the median 5-Year ROIIC % is 4.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frontier Group Holdings's current 5-Year ROIIC % is 4.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frontier Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Frontier Group Holdings (ULCC) is currently considered Modestly Overvalued. The stock's GF Value™ is $5.64, compared to a current price of $6.94 — trading 23% above its estimated fair value. The current 5-Year ROIIC % is 4.44 and 10.3% below the Transportation industry median of 4.95. Frontier Group Holdings' overall GF Score™ is 76/100 with 7 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 Frontier Group Holdings (ULCC), the current 5-Year ROIIC % is 4.44 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 Frontier Group Holdings (ULCC) Overvalued in 2026?
Based on GuruFocus' analysis, Frontier Group Holdings stock appears to be overvalued.
The current stock price of $6.94 is trading 23% above its estimated GF Value™ of $5.64.
GuruFocus considers Frontier Group Holdings to be Modestly Overvalued.
Key valuation signals for ULCC:
5-Year ROIIC %: 4.44
GF Value™: $5.64 vs. price of $6.94 (23% above fair value)
Industry Position: 10.3% below the Transportation median (#462 of 879)
No single metric tells the full story. See the ULCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frontier Group Holdings Inc is an ultra-low-cost carrier whose business is focused on Low Fares Done Right. The company owns a fleet of 120 Airbus single-aisle aircraft, consisting of 13 A320ceos, 82 A320neos, 21 A321ceos, and 4 A321neos. The use of these aircraft, their seating configuration, weight-saving tactics, and baggage process have all contributed to the ability to continue to be the fuel-efficient of all the U.S. The Company is managed as a single business unit that provides air transportation for passengers. The majority of revenue is from Domestic flight follow by International.
76GF Score
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