Balfour BeattyBAFBF 78 3-Year RORE % is 23.40 as of Dec. 2025. GuruFocus rates BAFBF with a GF Score™ of 78/100 and a GF Value™ of $7.35 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,632 Construction companies, Balfour Beatty ranks better than 62.5% on this metric.
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.
Balfour Beatty's 3-Year RORE % for the quarter that ended in Dec. 2025 was 23.40%.
The industry rank for Balfour Beatty's 3-Year RORE % or its related term are showing as below:
BAFBF's 3-Year RORE % is ranked better than 62.5% of 1632
companies
in the Construction industry
Industry Median: 6.525
vs BAFBF: 23.40
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.
Balfour Beatty 3-Year RORE % Related Terms
Balfour Beatty 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Balfour Beatty'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 Engineering & Construction subindustry, Balfour Beatty'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.
Balfour Beatty 3-Year RORE % vs Construction Industry
For the Construction industry and Industrials sector, Balfour Beatty's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Balfour Beatty'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.
Balfour Beatty (BAFBF) has a 3-Year RORE % of 23.40 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 Balfour Beatty and its competitors. According to the industry distribution chart, Balfour Beatty ranks #612 out of 1632 companies in the Construction industry, placing it in the top 37.5%.
Is Balfour Beatty's 3-Year RORE % too high?
Balfour Beatty's current 3-Year RORE % is 23.40. The Construction industry median 3-Year RORE % is 6.53. Balfour Beatty's value of 23.40 is 258.6% above this industry median. Based on the distribution chart, Balfour Beatty ranks #612 out of 1632 companies in the Construction industry, which is above the industry midpoint. Overall, Balfour Beatty has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Balfour Beatty's 3-Year RORE % compare to PWR and FIX?
According to the Construction industry distribution chart, Balfour Beatty ranks #612 out of 1632 companies for 3-Year RORE %. This puts Balfour Beatty in the upper half of its industry. The industry median 3-Year RORE % is 6.53. Balfour Beatty's value of 23.40 is 258.6% 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 Construction company?
The median 3-Year RORE % among Construction companies is 6.53, based on 1,632 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. Balfour Beatty's current 3-Year RORE % of 23.40 is 258.6% 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 Balfour Beatty and its competitors. For the Construction industry, the median 3-Year RORE % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Balfour Beatty's current 3-Year RORE % is 23.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Balfour Beatty stock overvalued right now?
Based on GuruFocus' analysis, Balfour Beatty (BAFBF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.35, compared to a current price of $11.20 — trading 52.4% above its estimated fair value. The current 3-Year RORE % is 23.40 and 258.6% above the Construction industry median of 6.53. Balfour Beatty's overall GF Score™ is 78/100 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 Balfour Beatty (BAFBF), the current 3-Year RORE % is 23.40 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 Balfour Beatty (BAFBF) Overvalued in 2026?
Based on GuruFocus' analysis, Balfour Beatty stock appears to be overvalued.
The current stock price of $11.20 is trading 52.4% above its estimated GF Value™ of $7.35.
GuruFocus considers Balfour Beatty to be Significantly Overvalued.
Key valuation signals for BAFBF:
3-Year RORE %: 23.40
GF Value™: $7.35 vs. price of $11.20 (52.4% above fair value)
Industry Position: 258.6% above the Construction median (#612 of 1632)
No single metric tells the full story. See the BAFBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Balfour Beatty PLC finances builds, and maintains infrastructure projects. It finances, develops, builds, maintains, and operates the increasingly complex and critical infrastructure that supports national economies and delivers projects at the heart of local communities. It operates three business segments: Construction services (majority of total revenue), Support services, and Infrastructure investments. It will invest directly in infrastructure assets also invests in real estate-type assets, in particular private residential and student accommodation assets. The majority of sales are derived from the United Kingdom and the United States.
78GF Score
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