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.
Morphic Ethical Equity Fund's 3-Year RORE % for the quarter that ended in Dec. 2025 was 4.29%.
ASX:MEC's 3-Year RORE % is ranked worse than 56.5% of 1531
companies
in the Asset Management industry
Industry Median: 12.59
vs ASX:MEC: 4.29
Morphic Ethical Equity Fund (ASX:MEC) 3-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, 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.
Morphic Ethical Equity Fund 3-Year RORE % Related Terms
Morphic Ethical Equity Fund 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 Asset Management subindustry, Morphic Ethical Equity Fund'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.
Morphic Ethical Equity Fund 3-Year RORE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Morphic Ethical Equity Fund's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Morphic Ethical Equity Fund'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 Dec. 2025 and 3-year before.
Morphic Ethical Equity Fund (ASX:MEC) has a 3-Year RORE % of 4.29 as of Dec. 2025. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Morphic Ethical Equity Fund and its competitors. According to the industry distribution chart, Morphic Ethical Equity Fund ranks #865 out of 1531 companies in the Asset Management industry, placing it in the top 56.5%.
Is Morphic Ethical Equity Fund's 3-Year RORE % too high?
Morphic Ethical Equity Fund's current 3-Year RORE % is 4.29. The Asset Management industry median 3-Year RORE % is 12.59. Morphic Ethical Equity Fund's value of 4.29 is 65.9% below this industry median. Based on the distribution chart, Morphic Ethical Equity Fund ranks #865 out of 1531 companies in the Asset Management industry, which is below the industry midpoint. Overall, Morphic Ethical Equity Fund has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Morphic Ethical Equity Fund's 3-Year RORE % compare to BLK and BX?
According to the Asset Management industry distribution chart, Morphic Ethical Equity Fund ranks #865 out of 1531 companies for 3-Year RORE %. This places Morphic Ethical Equity Fund in the lower half of its industry. The industry median 3-Year RORE % is 12.59. Morphic Ethical Equity Fund's value of 4.29 is 65.9% 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 3-Year RORE % for an Asset Management company?
The median 3-Year RORE % among Asset Management companies is 12.59, based on 1,531 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. Morphic Ethical Equity Fund's current 3-Year RORE % of 4.29 is 65.9% 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 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 Morphic Ethical Equity Fund and its competitors. For the Asset Management industry, the median 3-Year RORE % is 12.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morphic Ethical Equity Fund's current 3-Year RORE % is 4.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morphic Ethical Equity Fund stock overvalued right now?
Based on GuruFocus' analysis, Morphic Ethical Equity Fund (ASX:MEC) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.78, compared to a current price of A$1.35 — trading 72.4% above its estimated fair value. The current 3-Year RORE % is 4.29 and 65.9% below the Asset Management industry median of 12.59. Morphic Ethical Equity Fund's overall GF Score™ is 40/100 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 Morphic Ethical Equity Fund (ASX:MEC), the current 3-Year RORE % is 4.29 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 Morphic Ethical Equity Fund (ASX:MEC) Overvalued in 2026?
Based on GuruFocus' analysis, Morphic Ethical Equity Fund stock appears to be overvalued.
The current stock price of A$1.35 is trading 72.4% above its estimated GF Value™ of A$0.78.
GuruFocus considers Morphic Ethical Equity Fund to be Significantly Overvalued.
Key valuation signals for ASX:MEC:
3-Year RORE %: 4.29
GF Value™: A$0.78 vs. price of A$1.35 (72.4% above fair value)
Industry Position: 65.9% below the Asset Management median (#865 of 1531)
No single metric tells the full story. See the ASX:MEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morphic Ethical Equity Fund Ltd is an investment company. Its investment objective is to provide superior risk-adjusted returns to shareholders, comprising a combination of capital growth and income, thus allowing franked dividends to be paid to shareholders when prudent, and provided the company has sufficient profit reserves and franking credits available. The company invests in a portfolio of internationally listed securities screened to exclude entities involved in environmentally damaging activities (including coal and uranium, mining and oil and gas), intensive farming and aquaculture, tobacco, armaments, alcohol, and gambling. It earns revenue from dividend income, interest income, and other returns from the investment portfolio.
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