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.
Axos Financial's 3-Year RORE % for the quarter that ended in Mar. 2026 was 3.75%.
The industry rank for Axos Financial's 3-Year RORE % or its related term are showing as below:
AX's 3-Year RORE % is ranked worse than 65.76% of 1469
companies
in the Banks industry
Industry Median: 9.87
vs AX: 3.75
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.
Axos Financial 3-Year RORE % Related Terms
Axos Financial 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Axos Financial'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.
For the Banks - Regional subindustry, Axos Financial'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.
Axos Financial 3-Year RORE % vs Banks Industry
For the Banks industry and Financial Services sector, Axos Financial's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Axos Financial'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.
Axos Financial (AX) has a 3-Year RORE % of 3.75 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 Axos Financial and its competitors. According to the industry distribution chart, Axos Financial ranks #966 out of 1469 companies in the Banks industry, placing it in the top 65.8%.
Is Axos Financial's 3-Year RORE % too high?
Axos Financial's current 3-Year RORE % is 3.75. The Banks industry median 3-Year RORE % is 9.87. Axos Financial's value of 3.75 is 62% below this industry median. Based on the distribution chart, Axos Financial ranks #966 out of 1469 companies in the Banks industry, which is below the industry midpoint. Overall, Axos Financial has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Axos Financial's 3-Year RORE % compare to FINN and FFIN?
According to the Banks industry distribution chart, Axos Financial ranks #966 out of 1469 companies for 3-Year RORE %. This places Axos Financial in the lower half of its industry. The industry median 3-Year RORE % is 9.87. Axos Financial's value of 3.75 is 62% 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 a Banks company?
The median 3-Year RORE % among Banks companies is 9.87, based on 1,469 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. Axos Financial's current 3-Year RORE % of 3.75 is 62% 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 Axos Financial and its competitors. For the Banks industry, the median 3-Year RORE % is 9.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axos Financial's current 3-Year RORE % is 3.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axos Financial stock overvalued right now?
Based on GuruFocus' analysis, Axos Financial (AX) is currently considered Fairly Valued. The stock's GF Value™ is $87.75, compared to a current price of $96.23 — trading 9.7% above its estimated fair value. The current 3-Year RORE % is 3.75 and 62% below the Banks industry median of 9.87. Axos Financial's overall GF Score™ is 85/100 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 Axos Financial (AX), the current 3-Year RORE % is 3.75 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 Axos Financial (AX) Overvalued in 2026?
Based on GuruFocus' analysis, Axos Financial stock appears to be overvalued.
The current stock price of $96.23 is trading 9.7% above its estimated GF Value™ of $87.75.
GuruFocus considers Axos Financial to be Fairly Valued.
Key valuation signals for AX:
3-Year RORE %: 3.75
GF Value™: $87.75 vs. price of $96.23 (9.7% above fair value)
Industry Position: 62% below the Banks median (#966 of 1469)
No single metric tells the full story. See the AX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Axos Financial Inc is a bank holding company that operates through its bank subsidiary, BofI Federal Bank, a nationwide bank that provides financing for single and multifamily residential properties, small to medium-size businesses in certain sectors, and selected specialty finance receivables. Its operating segments are banking business segment and securities business segment. The bank distributed its products through a wide range of retail distribution channels, including only banking brands, affinity groups, and sales teams, among others. The majority of the bank's mortgage exposure is titled toward the state of California, particularly its southern region. Net interest income is a majority of the bank's revenue.
85GF Score
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