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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Nippon Denko Co's 10-Year RORE % for the quarter that ended in Dec. 2025 was 10.69%.
The industry rank for Nippon Denko Co's 10-Year RORE % or its related term are showing as below:
FRA:NJ5's 10-Year RORE % is ranked better than 69.73% of 479
companies
in the Steel industry
Industry Median: 3.23
vs FRA:NJ5: 10.69
Nippon Denko Co (FRA:NJ5) 10-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Nippon Denko Co 10-Year RORE % Related Terms
Nippon Denko Co 10-Year RORE % Historical Data
* Premium members only.
The historical data trend for Nippon Denko Co's 10-Year RORE % 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.
FRA:NJ5 vs NUE, STLD, RS: 10-Year RORE % Comparison
For the Steel subindustry, Nippon Denko Co's 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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.
Nippon Denko Co 10-Year RORE % vs Steel Industry
For the Steel industry and Basic Materials sector, Nippon Denko Co's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where Nippon Denko Co's 10-Year RORE % 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.
In the calculation of 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Dec. 2025 and 10-year before.
Nippon Denko Co (FRA:NJ5) has a 10-Year RORE % of 10.69 as of Dec. 2025. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Nippon Denko Co and its competitors. According to the industry distribution chart, Nippon Denko Co ranks #145 out of 479 companies in the Steel industry, placing it in the top 30.3%.
Is Nippon Denko Co's 10-Year RORE % too high?
Nippon Denko Co's current 10-Year RORE % is 10.69. The Steel industry median 10-Year RORE % is 3.23. Nippon Denko Co's value of 10.69 is 231% above this industry median. Based on the distribution chart, Nippon Denko Co ranks #145 out of 479 companies in the Steel industry, which is above the industry midpoint. Overall, Nippon Denko Co has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Nippon Denko Co's 10-Year RORE % compare to NUE and STLD?
According to the Steel industry distribution chart, Nippon Denko Co ranks #145 out of 479 companies for 10-Year RORE %. This puts Nippon Denko Co in the upper half of its industry. The industry median 10-Year RORE % is 3.23. Nippon Denko Co's value of 10.69 is 231% 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 10-Year RORE % for a Steel company?
The median 10-Year RORE % among Steel companies is 3.23, based on 479 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nippon Denko Co's current 10-Year RORE % of 10.69 is 231% 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Nippon Denko Co and its competitors. For the Steel industry, the median 10-Year RORE % is 3.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Denko Co's current 10-Year RORE % is 10.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Denko Co stock overvalued right now?
Nippon Denko Co (FRA:NJ5) has a current 10-Year RORE % of 10.69. The stock's GF Value™ is €1.62, compared to a current price of €2.20 — trading 35.8% above its estimated fair value. The current 10-Year RORE % is 10.69 and 231% above the Steel industry median of 3.23. Nippon Denko Co's overall GF Score™ is 72/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For Nippon Denko Co (FRA:NJ5), the current 10-Year RORE % is 10.69 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 Nippon Denko Co (FRA:NJ5) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Denko Co stock appears to be overvalued.
The current stock price of €2.20 is trading 35.8% above its estimated GF Value™ of €1.62.
Key valuation signals for FRA:NJ5:
10-Year RORE %: 10.69
GF Value™: €1.62 vs. price of €2.20 (35.8% above fair value)
Industry Position: 231% above the Steel median (#145 of 479)
No single metric tells the full story. See the FRA:NJ5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Denko Co Ltd is mainly engaged in the manufacturing and distribution of ferroalloys. In addition, it is also involved in the electric power generation. The company's core business activities are categorized into four segments: Ferroalloys, Functional Materials, Environment, and Other. The company serves a diverse range of markets including power companies, agricultural cooperatives, local governments and companies discharging industrial waste.
72GF Score
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