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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.
Softfront Holdings's 10-Year RORE % for the quarter that ended in Mar. 2026 was -20.70%.
The industry rank for Softfront Holdings's 10-Year RORE % or its related term are showing as below:
TSE:2321's 10-Year RORE % is ranked worse than 80.45% of 1299
companies
in the Software industry
Industry Median: 8.35
vs TSE:2321: -20.70
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.
Softfront Holdings 10-Year RORE % Related Terms
Softfront Holdings 10-Year RORE % Historical Data
* Premium members only.
The historical data trend for Softfront Holdings'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.
TSE:2321 vs CRM, SHOP, UBER: 10-Year RORE % Comparison
For the Software - Application subindustry, Softfront Holdings'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.
Softfront Holdings 10-Year RORE % vs Software Industry
For the Software industry and Technology sector, Softfront Holdings's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where Softfront Holdings'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 Mar. 2026 and 10-year before.
Softfront Holdings (TSE:2321) has a 10-Year RORE % of -20.70 as of Mar. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Softfront Holdings and its competitors. According to the industry distribution chart, Softfront Holdings ranks #1045 out of 1299 companies in the Software industry, placing it in the top 80.4%.
Is Softfront Holdings' 10-Year RORE % too high?
Softfront Holdings' current 10-Year RORE % is -20.70. Based on the distribution chart, Softfront Holdings ranks #1045 out of 1299 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Softfront Holdings has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Softfront Holdings' 10-Year RORE % compare to CRM and SHOP?
According to the Software industry distribution chart, Softfront Holdings ranks #1045 out of 1299 companies for 10-Year RORE %. This places Softfront Holdings in the lower half of its industry. The industry median 10-Year RORE % is 8.35. 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 Software company?
The median 10-Year RORE % among Software companies is 8.35, based on 1,299 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. 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 Softfront Holdings and its competitors. For the Software industry, the median 10-Year RORE % is 8.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Softfront Holdings's current 10-Year RORE % is -20.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softfront Holdings stock overvalued right now?
Based on GuruFocus' analysis, Softfront Holdings (TSE:2321) is currently considered Significantly Overvalued. The stock's GF Value™ is 円66.65, compared to a current price of 円161.00 — trading 141.6% above its estimated fair value. The current 10-Year RORE % is -20.70. Softfront Holdings' overall GF Score™ is 38/100 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 Softfront Holdings (TSE:2321), the current 10-Year RORE % is -20.70 as of Mar. 2026. 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 Softfront Holdings (TSE:2321) Overvalued in 2026?
Based on GuruFocus' analysis, Softfront Holdings stock appears to be overvalued.
The current stock price of 円161.00 is trading 141.6% above its estimated GF Value™ of 円66.65.
GuruFocus considers Softfront Holdings to be Significantly Overvalued.
Key valuation signals for TSE:2321:
10-Year RORE %: -20.70
GF Value™: 円66.65 vs. price of 円161.00 (141.6% above fair value)
No single metric tells the full story. See the TSE:2321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Softfront Holdings is engaged in contract development consultation in Japan. It also provides technical assistance for the software development environment that provides the core technology and SIP / VoIP. Its core activity includes communications technology. The group operates in a single segment, the communications platform-related business.
38GF Score
Get the complete analysis for TSE:2321
10-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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