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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.
ReadyTech Holdings's 3-Year RORE % for the quarter that ended in Dec. 2025 was 72.13%.
The industry rank for ReadyTech Holdings's 3-Year RORE % or its related term are showing as below:
ASX:RDY's 3-Year RORE % is ranked better than 88% of 2549
companies
in the Software industry
Industry Median: 3
vs ASX:RDY: 72.13
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.
ReadyTech Holdings 3-Year RORE % Related Terms
ReadyTech Holdings 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for ReadyTech Holdings's 3-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.
ASX:RDY vs UBER, SHOP, CRM: 3-Year RORE % Comparison
For the Software - Application subindustry, ReadyTech Holdings'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.
ReadyTech Holdings 3-Year RORE % vs Software Industry
For the Software industry and Technology sector, ReadyTech Holdings's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where ReadyTech Holdings'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.
ReadyTech Holdings (ASX:RDY) has a 3-Year RORE % of 72.13 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 ReadyTech Holdings and its competitors. According to the industry distribution chart, ReadyTech Holdings ranks #306 out of 2549 companies in the Software industry, placing it in the top 12%.
Is ReadyTech Holdings' 3-Year RORE % too high?
ReadyTech Holdings' current 3-Year RORE % is 72.13. The Software industry median 3-Year RORE % is 3.00. ReadyTech Holdings' value of 72.13 is 2304.3% above this industry median. Based on the distribution chart, ReadyTech Holdings ranks #306 out of 2549 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, ReadyTech Holdings has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ReadyTech Holdings' 3-Year RORE % compare to UBER and SHOP?
According to the Software industry distribution chart, ReadyTech Holdings ranks #306 out of 2549 companies for 3-Year RORE %. This places ReadyTech Holdings in the top 12% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 3.00. ReadyTech Holdings' value of 72.13 is 2304.3% 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 Software company?
The median 3-Year RORE % among Software companies is 3.00, based on 2,549 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. ReadyTech Holdings's current 3-Year RORE % of 72.13 is 2304.3% 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 ReadyTech Holdings and its competitors. For the Software industry, the median 3-Year RORE % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ReadyTech Holdings's current 3-Year RORE % is 72.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ReadyTech Holdings stock overvalued right now?
Based on GuruFocus' analysis, ReadyTech Holdings (ASX:RDY) is currently considered Possible Value Trap. The stock's GF Value™ is A$3.37, compared to a current price of A$1.60 — trading 52.5% below its estimated fair value. The current 3-Year RORE % is 72.13 and 2304.3% above the Software industry median of 3.00. ReadyTech Holdings' overall GF Score™ is 74/100 with 6 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 ReadyTech Holdings (ASX:RDY), the current 3-Year RORE % is 72.13 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 ReadyTech Holdings (ASX:RDY) Overvalued in 2026?
Based on GuruFocus' analysis, ReadyTech Holdings stock appears to be undervalued.
The current stock price of A$1.60 is trading 52.5% below its estimated GF Value™ of A$3.37.
GuruFocus considers ReadyTech Holdings to be Possible Value Trap.
Key valuation signals for ASX:RDY:
3-Year RORE %: 72.13
GF Value™: A$3.37 vs. price of A$1.60 (52.5% below fair value)
Industry Position: 2304.3% above the Software median (#306 of 2549)
No single metric tells the full story. See the ASX:RDY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ReadyTech Holdings Ltd is a provider of people management software for educators, employers, and facilitators of career transitions. Its products are JR Plus, A2E, HR3, ePayroll, JR Gov, Aussiepay, and others. The company's operating segments include Education and Work pathways, Workforce Solutions, and Government and Justice. It generates maximum revenue from the Government and Justice. The education segment mainly provides products and services to tertiary education providers. Its Workforce segment provides products and services to a mid-sized company across various industries. The Government division provides government and justice case management software as a service solution to local governments, state governments, and justice departments.
74GF Score
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