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.
Empresa Metropolitana de Aguas & Energia's 3-Year RORE % for the quarter that ended in Mar. 2026 was 342.85%.
BSP:EMAE4's 3-Year RORE % is ranked better than 97.16% of 493
companies
in the Utilities - Regulated industry
Industry Median: 6.67
vs BSP:EMAE4: 342.85
Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) 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.
Empresa Metropolitana de Aguas & Energia 3-Year RORE % Related Terms
Empresa Metropolitana de Aguas & Energia 3-Year RORE % Historical Data
* 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.
Empresa Metropolitana de Aguas & Energia 3-Year RORE % Chart
Empresa Metropolitana de Aguas & Energia Annual Data
For the Utilities - Diversified subindustry, Empresa Metropolitana de Aguas & Energia'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.
Empresa Metropolitana de Aguas & Energia 3-Year RORE % vs Utilities - Regulated Industry
* 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.
Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) has a 3-Year RORE % of 342.85 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 Empresa Metropolitana de Aguas & Energia and its competitors. According to the industry distribution chart, Empresa Metropolitana de Aguas & Energia ranks #14 out of 493 companies in the Utilities - Regulated industry, placing it in the top 2.8%.
Is Empresa Metropolitana de Aguas & Energia's 3-Year RORE % too high?
Empresa Metropolitana de Aguas & Energia's current 3-Year RORE % is 342.85. The Utilities - Regulated industry median 3-Year RORE % is 6.67. Empresa Metropolitana de Aguas & Energia's value of 342.85 is 5040.2% above this industry median. Based on the distribution chart, Empresa Metropolitana de Aguas & Energia ranks #14 out of 493 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Empresa Metropolitana de Aguas & Energia has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Empresa Metropolitana de Aguas & Energia's 3-Year RORE % compare to SRE?
According to the Utilities - Regulated industry distribution chart, Empresa Metropolitana de Aguas & Energia ranks #14 out of 493 companies for 3-Year RORE %. This places Empresa Metropolitana de Aguas & Energia in the top 3% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 6.67. Empresa Metropolitana de Aguas & Energia's value of 342.85 is 5040.2% 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 an Utilities - Regulated company?
The median 3-Year RORE % among Utilities - Regulated companies is 6.67, based on 493 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. Empresa Metropolitana de Aguas & Energia's current 3-Year RORE % of 342.85 is 5040.2% 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 Empresa Metropolitana de Aguas & Energia and its competitors. For the Utilities - Regulated industry, the median 3-Year RORE % is 6.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Empresa Metropolitana de Aguas & Energia's current 3-Year RORE % is 342.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Empresa Metropolitana de Aguas & Energia stock overvalued right now?
Based on GuruFocus' analysis, Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) is currently considered Fairly Valued. The stock's GF Value™ is R$37.17, compared to a current price of R$37.41 — trading 0.6% above its estimated fair value. The current 3-Year RORE % is 342.85 and 5040.2% above the Utilities - Regulated industry median of 6.67. Empresa Metropolitana de Aguas & Energia's overall GF Score™ is 64/100 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 Empresa Metropolitana de Aguas & Energia (BSP:EMAE4), the current 3-Year RORE % is 342.85 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 Empresa Metropolitana de Aguas & Energia (BSP:EMAE4) Overvalued in 2026?
Based on GuruFocus' analysis, Empresa Metropolitana de Aguas & Energia stock appears to be overvalued.
The current stock price of R$37.41 is trading 0.6% above its estimated GF Value™ of R$37.17.
GuruFocus considers Empresa Metropolitana de Aguas & Energia to be Fairly Valued.
Key valuation signals for BSP:EMAE4:
3-Year RORE %: 342.85
GF Value™: R$37.17 vs. price of R$37.41 (0.6% above fair value)
Industry Position: 5040.2% above the Utilities - Regulated median (#14 of 493)
No single metric tells the full story. See the BSP:EMAE4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Empresa Metropolitana de Aguas & Energia Business Description
Empresa Metropolitana de Aguas & Energia SA is engaged in electricity generation. The company manages a complex hydraulic system that includes dykes, dams, and reservoirs, with notable ones being Billings and Guarapiranga, located in the southern zone of Sao Paulo city, as well as the Sao Paulo and Pedreira pumping stations and the Pinheiros River canal. The company's activities include electricity supply, the construction of energy generation assets, and the provision of operation and maintenance services for power plants and related structures, serving both private companies and public sector entities.
64GF Score
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