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.
Axon Enterprise's 3-Year RORE % for the quarter that ended in Mar. 2026 was -9.52%.
The industry rank for Axon Enterprise's 3-Year RORE % or its related term are showing as below:
AXON's 3-Year RORE % is ranked worse than 66.14% of 316
companies
in the Aerospace & Defense industry
Industry Median: 9.565
vs AXON: -9.52
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.
Axon Enterprise 3-Year RORE % Related Terms
Axon Enterprise 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Axon Enterprise'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 Aerospace & Defense subindustry, Axon Enterprise'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.
Axon Enterprise 3-Year RORE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Axon Enterprise's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Axon Enterprise'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.
Axon Enterprise (AXON) has a 3-Year RORE % of -9.52 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 Axon Enterprise and its competitors. According to the industry distribution chart, Axon Enterprise ranks #209 out of 316 companies in the Aerospace & Defense industry, placing it in the top 66.1%.
Is Axon Enterprise's 3-Year RORE % too high?
Axon Enterprise's current 3-Year RORE % is -9.52. Based on the distribution chart, Axon Enterprise ranks #209 out of 316 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Axon Enterprise has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Axon Enterprise's 3-Year RORE % compare to HEI.A and CW?
According to the Aerospace & Defense industry distribution chart, Axon Enterprise ranks #209 out of 316 companies for 3-Year RORE %. This places Axon Enterprise in the lower half of its industry. The industry median 3-Year RORE % is 9.57. 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 Aerospace & Defense company?
The median 3-Year RORE % among Aerospace & Defense companies is 9.57, based on 316 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. 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 Axon Enterprise and its competitors. For the Aerospace & Defense industry, the median 3-Year RORE % is 9.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axon Enterprise's current 3-Year RORE % is -9.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axon Enterprise stock overvalued right now?
Based on GuruFocus' analysis, Axon Enterprise (AXON) is currently considered Modestly Undervalued. The stock's GF Value™ is $601.68, compared to a current price of $510.60 — trading 15.1% below its estimated fair value. The current 3-Year RORE % is -9.52. Axon Enterprise's overall GF Score™ is 81/100 with 4 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 Axon Enterprise (AXON), the current 3-Year RORE % is -9.52 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 Axon Enterprise (AXON) Overvalued in 2026?
Based on GuruFocus' analysis, Axon Enterprise stock appears to be undervalued.
The current stock price of $510.60 is trading 15.1% below its estimated GF Value™ of $601.68.
GuruFocus considers Axon Enterprise to be Modestly Undervalued.
Key valuation signals for AXON:
3-Year RORE %: -9.52
GF Value™: $601.68 vs. price of $510.60 (15.1% below fair value)
No single metric tells the full story. See the AXON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Axon Enterprise Inc is building a public safety operating system by integrating a suite of hardware devices and cloud software solutions. The company's suite includes cloud-hosted digital evidence management solutions, TASER energy devices, drones and robotic security, and training solutions. Its operation comprises of two operating segments, Software and Services, and Connected Devices. The company generates the majority of its revenue from the Connected Devices segment, which is engaged in developing, manufacturing, and selling fully integrated hardware solutions such as conducted energy devices sold under the TASER brand, body cameras, fixed and in-car cameras, drone and counter-drone technologies, and a broad ecosystem of accessories, extended warranties and related hardware products.
81GF Score
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