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.
Cathay Financial Holding Co's 10-Year RORE % for the quarter that ended in Dec. 2025 was 10.76%.
The industry rank for Cathay Financial Holding Co's 10-Year RORE % or its related term are showing as below:
LSE:CFHS's 10-Year RORE % is ranked worse than 56.66% of 383
companies
in the Insurance industry
Industry Median: 12.63
vs LSE:CFHS: 10.76
Cathay Financial Holding Co (LSE:CFHS) 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.
Cathay Financial Holding Co 10-Year RORE % Related Terms
Cathay Financial Holding Co 10-Year RORE % 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.
LSE:CFHS vs AFL, MET, PRU: 10-Year RORE % Comparison
For the Insurance - Life subindustry, Cathay Financial Holding 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.
Cathay Financial Holding Co 10-Year RORE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Cathay Financial Holding Co's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where Cathay Financial Holding 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.
Cathay Financial Holding Co (LSE:CFHS) has a 10-Year RORE % of 10.76 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 Cathay Financial Holding Co and its competitors. According to the industry distribution chart, Cathay Financial Holding Co ranks #217 out of 383 companies in the Insurance industry, placing it in the top 56.7%.
Is Cathay Financial Holding Co's 10-Year RORE % too high?
Cathay Financial Holding Co's current 10-Year RORE % is 10.76. The Insurance industry median 10-Year RORE % is 12.63. Cathay Financial Holding Co's value of 10.76 is 14.8% below this industry median. Based on the distribution chart, Cathay Financial Holding Co ranks #217 out of 383 companies in the Insurance industry, which is below the industry midpoint. Overall, Cathay Financial Holding Co has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Cathay Financial Holding Co's 10-Year RORE % compare to AFL and MET?
According to the Insurance industry distribution chart, Cathay Financial Holding Co ranks #217 out of 383 companies for 10-Year RORE %. This places Cathay Financial Holding Co in the lower half of its industry. The industry median 10-Year RORE % is 12.63. Cathay Financial Holding Co's value of 10.76 is 14.8% 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 10-Year RORE % for an Insurance company?
The median 10-Year RORE % among Insurance companies is 12.63, based on 383 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. Cathay Financial Holding Co's current 10-Year RORE % of 10.76 is 14.8% 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 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 Cathay Financial Holding Co and its competitors. For the Insurance industry, the median 10-Year RORE % is 12.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Financial Holding Co's current 10-Year RORE % is 10.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Financial Holding Co stock overvalued right now?
Cathay Financial Holding Co (LSE:CFHS) has a current 10-Year RORE % of 10.76. The stock's GF Value™ is $15.11, compared to a current price of $19.20 — trading 27.1% above its estimated fair value. The current 10-Year RORE % is 10.76 and 14.8% below the Insurance industry median of 12.63. Cathay Financial Holding Co's overall GF Score™ is 54/100 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 Cathay Financial Holding Co (LSE:CFHS), the current 10-Year RORE % is 10.76 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 Cathay Financial Holding Co (LSE:CFHS) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Financial Holding Co stock appears to be overvalued.
The current stock price of $19.20 is trading 27.1% above its estimated GF Value™ of $15.11.
Key valuation signals for LSE:CFHS:
10-Year RORE %: 10.76
GF Value™: $15.11 vs. price of $19.20 (27.1% above fair value)
Industry Position: 14.8% below the Insurance median (#217 of 383)
No single metric tells the full story. See the LSE:CFHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Financial Holding Co Ltd is a financial holding company. It has five operating segments Banking segment is engaged in permitted businesses of commercial banks; Life insurance segments is engaged in traditional insurance, investment-linked insurance and interest-sensitive sales of annuity insurance and providing financial planning services and policy loan services; Property insurance segment is engaged in fire insurance, marine insurance, land and air insurance, liability insurance, financial guarantee insurance, reinsurance and other insurance; Securities segment is engaged in brokerage, dealership, and underwriting business; and Other operating segment of which majority of revenue is from Life insurance. Geographically revenue comes from Taiwan.
54GF Score
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10-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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