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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.
Sonic Healthcare's 3-Year RORE % for the quarter that ended in Dec. 2025 was 27.66%.
The industry rank for Sonic Healthcare's 3-Year RORE % or its related term are showing as below:
ASX:SHL's 3-Year RORE % is ranked better than 80.5% of 200
companies
in the Medical Diagnostics & Research industry
Industry Median: -7.935
vs ASX:SHL: 27.66
Sonic Healthcare (ASX:SHL) 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.
Sonic Healthcare 3-Year RORE % Related Terms
Sonic Healthcare 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Sonic Healthcare'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:SHL vs TMO, DHR, IDXX: 3-Year RORE % Comparison
For the Diagnostics & Research subindustry, Sonic Healthcare'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.
Sonic Healthcare 3-Year RORE % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Sonic Healthcare's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Sonic Healthcare'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.
Sonic Healthcare (ASX:SHL) has a 3-Year RORE % of 27.66 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 Sonic Healthcare and its competitors. According to the industry distribution chart, Sonic Healthcare ranks #39 out of 200 companies in the Medical Diagnostics & Research industry, placing it in the top 19.5%.
Is Sonic Healthcare's 3-Year RORE % too high?
Sonic Healthcare's current 3-Year RORE % is 27.66. Based on the distribution chart, Sonic Healthcare ranks #39 out of 200 companies in the Medical Diagnostics & Research industry, which is in the top quartile — a strong position relative to peers. Overall, Sonic Healthcare has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sonic Healthcare's 3-Year RORE % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Sonic Healthcare ranks #39 out of 200 companies for 3-Year RORE %. This places Sonic Healthcare in the top 20% of its industry — outperforming the majority of peers. 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 Medical Diagnostics & Research company?
A good 3-Year RORE % depends on the Medical Diagnostics & Research industry context. However, 3-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 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 Sonic Healthcare and its competitors. Sonic Healthcare's current 3-Year RORE % is 27.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonic Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Sonic Healthcare (ASX:SHL) is currently considered Significantly Undervalued. The stock's GF Value™ is A$33.05, compared to a current price of A$21.48 — trading 35% below its estimated fair value. The current 3-Year RORE % is 27.66. Sonic Healthcare's overall GF Score™ is 81/100 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 Sonic Healthcare (ASX:SHL), the current 3-Year RORE % is 27.66 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 Sonic Healthcare (ASX:SHL) Overvalued in 2026?
Based on GuruFocus' analysis, Sonic Healthcare stock appears to be undervalued.
The current stock price of A$21.48 is trading 35% below its estimated GF Value™ of A$33.05.
GuruFocus considers Sonic Healthcare to be Significantly Undervalued.
Key valuation signals for ASX:SHL:
3-Year RORE %: 27.66
GF Value™: A$33.05 vs. price of A$21.48 (35% below fair value)
No single metric tells the full story. See the ASX:SHL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonic Healthcare is a global pathology provider. It is the largest private operator in Australia, Germany, Switzerland and the UK, the second-largest in Belgium and New Zealand, and the third largest in the US. In addition to pathology, which contributes roughly 85% of group revenue, Sonic is the second-largest player in diagnostic imaging in Australia and the largest operator of medical centers in Australia. The company typically earns about 35% of group revenue in Australia and New Zealand, 25% in the US, and 40% in Europe.
81GF Score
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