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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.
Softcat's 3-Year RORE % for the quarter that ended in Jan. 2026 was 12.57%.
The industry rank for Softcat's 3-Year RORE % or its related term are showing as below:
CHIX:SCTl's 3-Year RORE % is ranked better than 56.9% of 2383
companies
in the Hardware industry
Industry Median: 5.26
vs CHIX:SCTl: 12.57
Softcat (CHIX:SCTl) 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.
Softcat 3-Year RORE % Related Terms
Softcat 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Softcat'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.
CHIX:SCTL vs SNX, ARW, AVT: 3-Year RORE % Comparison
For the Electronics & Computer Distribution subindustry, Softcat'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.
Softcat 3-Year RORE % vs Hardware Industry
For the Hardware industry and Technology sector, Softcat's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Softcat'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 Jan. 2026 and 3-year before.
Softcat (CHIX:SCTL) has a 3-Year RORE % of 12.57 as of Jan. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Softcat and its competitors. According to the industry distribution chart, Softcat ranks #1027 out of 2383 companies in the Hardware industry, placing it in the top 43.1%.
Is Softcat's 3-Year RORE % too high?
Softcat's current 3-Year RORE % is 12.57. The Hardware industry median 3-Year RORE % is 5.26. Softcat's value of 12.57 is 139% above this industry median. Based on the distribution chart, Softcat ranks #1027 out of 2383 companies in the Hardware industry, which is above the industry midpoint. Overall, Softcat has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Softcat's 3-Year RORE % compare to SNX and ARW?
According to the Hardware industry distribution chart, Softcat ranks #1027 out of 2383 companies for 3-Year RORE %. This puts Softcat in the upper half of its industry. The industry median 3-Year RORE % is 5.26. Softcat's value of 12.57 is 139% 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 Hardware company?
The median 3-Year RORE % among Hardware companies is 5.26, based on 2,383 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. Softcat's current 3-Year RORE % of 12.57 is 139% 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 Softcat and its competitors. For the Hardware industry, the median 3-Year RORE % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Softcat's current 3-Year RORE % is 12.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softcat stock overvalued right now?
Based on GuruFocus' analysis, Softcat (CHIX:SCTL) is currently considered Modestly Undervalued. The stock's GF Value™ is £25.98, compared to a current price of £19.11 — trading 26.4% below its estimated fair value. The current 3-Year RORE % is 12.57 and 139% above the Hardware industry median of 5.26. Softcat's overall GF Score™ is 86/100 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 Softcat (CHIX:SCTL), the current 3-Year RORE % is 12.57 as of Jan. 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 Softcat (CHIX:SCTL) Overvalued in 2026?
Based on GuruFocus' analysis, Softcat stock appears to be undervalued.
The current stock price of £19.11 is trading 26.4% below its estimated GF Value™ of £25.98.
GuruFocus considers Softcat to be Modestly Undervalued.
Key valuation signals for CHIX:SCTL:
3-Year RORE %: 12.57
GF Value™: £25.98 vs. price of £19.11 (26.4% below fair value)
Industry Position: 139% above the Hardware median (#1027 of 2383)
No single metric tells the full story. See the CHIX:SCTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Softcat PLC is an information technology infrastructure and service provider offering software licensing, workplace technology, networking and security, and cloud and data center solutions to corporates, public sector organizations, and small to medium-sized businesses, with the latter being the main business provider. It earns revenue from software, hardware, and services, including its own services, with the majority derived from software products. Its solutions include Workspace, Cyber Security, Networking and Connectivity, Data, Automation and AI, and Hybrid Cloud Solutions. The company serves Small to Medium Businesses, Enterprise, Multinational Services, and the Public Sector including healthcare, education, government, defence, police, and emergency services.
86GF Score
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