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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.
Sofcom Systems's 3-Year RORE % for the quarter that ended in Jun. 2026 was 55.51%.
The industry rank for Sofcom Systems's 3-Year RORE % or its related term are showing as below:
BOM:538923's 3-Year RORE % is ranked better than 83.22% of 2581
companies
in the Software industry
Industry Median: 3.99
vs BOM:538923: 55.51
Sofcom Systems (BOM:538923) 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.
Sofcom Systems 3-Year RORE % Related Terms
Sofcom Systems 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Sofcom Systems'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.
BOM:538923 vs IBM, ACN, CTSH: 3-Year RORE % Comparison
For the Information Technology Services subindustry, Sofcom Systems'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.
Sofcom Systems 3-Year RORE % vs Software Industry
For the Software industry and Technology sector, Sofcom Systems's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Sofcom Systems'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 Jun. 2026 and 3-year before.
Sofcom Systems (BOM:538923) has a 3-Year RORE % of 55.51 as of Jun. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Sofcom Systems and its competitors. According to the industry distribution chart, Sofcom Systems ranks #433 out of 2581 companies in the Software industry, placing it in the top 16.8%.
Is Sofcom Systems' 3-Year RORE % too high?
Sofcom Systems' current 3-Year RORE % is 55.51. The Software industry median 3-Year RORE % is 3.99. Sofcom Systems' value of 55.51 is 1291.2% above this industry median. Based on the distribution chart, Sofcom Systems ranks #433 out of 2581 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Sofcom Systems has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sofcom Systems' 3-Year RORE % compare to IBM and ACN?
According to the Software industry distribution chart, Sofcom Systems ranks #433 out of 2581 companies for 3-Year RORE %. This places Sofcom Systems in the top 17% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 3.99. Sofcom Systems' value of 55.51 is 1291.2% 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 Software company?
The median 3-Year RORE % among Software companies is 3.99, based on 2,581 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. Sofcom Systems's current 3-Year RORE % of 55.51 is 1291.2% 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 Sofcom Systems and its competitors. For the Software industry, the median 3-Year RORE % is 3.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sofcom Systems's current 3-Year RORE % is 55.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sofcom Systems stock overvalued right now?
Based on GuruFocus' analysis, Sofcom Systems (BOM:538923) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹12.87, compared to a current price of ₹17.93 — trading 39.3% above its estimated fair value. The current 3-Year RORE % is 55.51 and 1291.2% above the Software industry median of 3.99. Sofcom Systems' overall GF Score™ is 44/100 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 Sofcom Systems (BOM:538923), the current 3-Year RORE % is 55.51 as of Jun. 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 Sofcom Systems (BOM:538923) Overvalued in 2026?
Based on GuruFocus' analysis, Sofcom Systems stock appears to be overvalued.
The current stock price of ₹17.93 is trading 39.3% above its estimated GF Value™ of ₹12.87.
GuruFocus considers Sofcom Systems to be Significantly Overvalued.
Key valuation signals for BOM:538923:
3-Year RORE %: 55.51
GF Value™: ₹12.87 vs. price of ₹17.93 (39.3% above fair value)
Industry Position: 1291.2% above the Software median (#433 of 2581)
No single metric tells the full story. See the BOM:538923 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sofcom Systems Ltd provides consultancy for software development in the form of services, turnkey projects, and products for the domestic and export market. The software development is targeted towards the distribution, banking, telecommunication, and manufacturing sectors. It also offers software maintenance, reengineering, and downsizing of software applications in these market segments. The company is providing information technology solutions to both commercial and government clients. The Company is engaged in the trading of Software & other items and providing software consultancy in India. The Company derives revenues from sale of software and consultancy.
44GF Score
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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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