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.
Verizon Communications's 3-Year RORE % for the quarter that ended in Mar. 2026 was 49.53%.
The industry rank for Verizon Communications's 3-Year RORE % or its related term are showing as below:
VZ's 3-Year RORE % is ranked better than 79.3% of 343
companies
in the Telecommunication Services industry
Industry Median: 7.41
vs VZ: 49.53
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, 3-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.
Verizon Communications 3-Year RORE % Related Terms
Verizon Communications 3-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.
For the Telecom Services subindustry, Verizon Communications's 3-Year RORE %, along with its competitors' market caps and 3-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.
Verizon Communications 3-Year RORE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Verizon Communications's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Verizon Communications's 3-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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Verizon Communications (VZ) has a 3-Year RORE % of 49.53 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Verizon Communications and its competitors. According to the industry distribution chart, Verizon Communications ranks #71 out of 343 companies in the Telecommunication Services industry, placing it in the top 20.7%.
Is Verizon Communications' 3-Year RORE % too high?
Verizon Communications' current 3-Year RORE % is 49.53. The Telecommunication Services industry median 3-Year RORE % is 7.41. Verizon Communications' value of 49.53 is 568.4% above this industry median. Based on the distribution chart, Verizon Communications ranks #71 out of 343 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Verizon Communications has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Verizon Communications' 3-Year RORE % compare to TMUS and T?
According to the Telecommunication Services industry distribution chart, Verizon Communications ranks #71 out of 343 companies for 3-Year RORE %. This places Verizon Communications in the top 21% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 7.41. Verizon Communications' value of 49.53 is 568.4% 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 3-Year RORE % for a Telecommunication Services company?
The median 3-Year RORE % among Telecommunication Services companies is 7.41, based on 343 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Verizon Communications's current 3-Year RORE % of 49.53 is 568.4% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Verizon Communications and its competitors. For the Telecommunication Services industry, the median 3-Year RORE % is 7.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Verizon Communications's current 3-Year RORE % is 49.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verizon Communications stock overvalued right now?
Based on GuruFocus' analysis, Verizon Communications (VZ) is currently considered Fairly Valued. The stock's GF Value™ is $42.49, compared to a current price of $46.54 — trading 9.5% above its estimated fair value. The current 3-Year RORE % is 49.53 and 568.4% above the Telecommunication Services industry median of 7.41. Verizon Communications' overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Verizon Communications (VZ), the current 3-Year RORE % is 49.53 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 Verizon Communications (VZ) Overvalued in 2026?
Based on GuruFocus' analysis, Verizon Communications stock appears to be overvalued.
The current stock price of $46.54 is trading 9.5% above its estimated GF Value™ of $42.49.
GuruFocus considers Verizon Communications to be Fairly Valued.
Key valuation signals for VZ:
3-Year RORE %: 49.53
GF Value™: $42.49 vs. price of $46.54 (9.5% above fair value)
Industry Position: 568.4% above the Telecommunication Services median (#71 of 343)
No single metric tells the full story. See the VZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wireless services account for 75% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 94 million postpaid and 20 million prepaid phone customers via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast that reach about 30 million homes and businesses, including about 20 million served by the Fios fiber-optic network. Verizon closed its acquisition of Frontier Communications in January, adding networks that reach another 15 million locations, including 9 million with fiber. These networks serve about 11 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, using a mix of its own and other networks.
64GF Score
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