Bausch HealthBHC +1.65%58 3-Year RORE % is 43.57 as of Mar. 2026. GuruFocus rates BHC with a GF Score™ of 58/100 and a GF Value™ of $7.91 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 934 Drug Manufacturers companies, Bausch Health ranks better than 80.73% 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.
Bausch Health's 3-Year RORE % for the quarter that ended in Mar. 2026 was 43.57%.
The industry rank for Bausch Health's 3-Year RORE % or its related term are showing as below:
BHC's 3-Year RORE % is ranked better than 80.73% of 934
companies
in the Drug Manufacturers industry
Industry Median: 3.075
vs BHC: 43.57
Bausch Health (NYSE:BHC) 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.
Bausch Health 3-Year RORE % Related Terms
Bausch Health 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Bausch Health'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 Drug Manufacturers - Specialty & Generic subindustry, Bausch Health'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.
Bausch Health 3-Year RORE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Bausch Health's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Bausch Health'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.
Bausch Health (BHC) has a 3-Year RORE % of 43.57 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 Bausch Health and its competitors. According to the industry distribution chart, Bausch Health ranks #180 out of 934 companies in the Drug Manufacturers industry, placing it in the top 19.3%.
Is Bausch Health's 3-Year RORE % too high?
Bausch Health's current 3-Year RORE % is 43.57. The Drug Manufacturers industry median 3-Year RORE % is 3.08. Bausch Health's value of 43.57 is 1316.9% above this industry median. Based on the distribution chart, Bausch Health ranks #180 out of 934 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Bausch Health has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Bausch Health's 3-Year RORE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Bausch Health ranks #180 out of 934 companies for 3-Year RORE %. This places Bausch Health in the top 19% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 3.08. Bausch Health's value of 43.57 is 1316.9% 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 Drug Manufacturers company?
The median 3-Year RORE % among Drug Manufacturers companies is 3.08, based on 934 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. Bausch Health's current 3-Year RORE % of 43.57 is 1316.9% 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 Bausch Health and its competitors. For the Drug Manufacturers industry, the median 3-Year RORE % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bausch Health's current 3-Year RORE % is 43.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bausch Health stock overvalued right now?
Based on GuruFocus' analysis, Bausch Health (BHC) is currently considered Possible Value Trap. The stock's GF Value™ is $7.91, compared to a current price of $4.93 — trading 37.7% below its estimated fair value. The current 3-Year RORE % is 43.57 and 1316.9% above the Drug Manufacturers industry median of 3.08. Bausch Health's overall GF Score™ is 58/100 with 3 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 Bausch Health (BHC), the current 3-Year RORE % is 43.57 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 Bausch Health (BHC) Overvalued in 2026?
Based on GuruFocus' analysis, Bausch Health stock appears to be undervalued.
The current stock price of $4.93 is trading 37.7% below its estimated GF Value™ of $7.91.
GuruFocus considers Bausch Health to be Possible Value Trap.
Key valuation signals for BHC:
3-Year RORE %: 43.57
GF Value™: $7.91 vs. price of $4.93 (37.7% below fair value)
Industry Position: 1316.9% above the Drug Manufacturers median (#180 of 934)
No single metric tells the full story. See the BHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bausch Health Companies Inc is a world-wide specialty pharmaceutical, consumer health, and medical device company with a focus on branded products for the gastroenterology, hepatology, neurology and dermatology markets. The company reports revenue in five segments: Salix; International; Solta Medical; Diversified Products and Bausch + Lomb. It generates maximum of its revenue from the Bausch + Lomb segment.
58GF Score
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