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.
Clearwater Analytics Holdings's 3-Year RORE % for the quarter that ended in Mar. 2026 was -7.04%.
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.
Clearwater Analytics Holdings 3-Year RORE % Related Terms
Clearwater Analytics Holdings 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.
CWAN vs IDCC, CHYM, TTAN: 3-Year RORE % Comparison
For the Software - Application subindustry, Clearwater Analytics Holdings'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.
Clearwater Analytics Holdings 3-Year RORE % vs Software Industry
For the Software industry and Technology sector, Clearwater Analytics Holdings's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Clearwater Analytics Holdings'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.
Clearwater Analytics Holdings (CWAN) has a 3-Year RORE % of -7.04 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 Clearwater Analytics Holdings and its competitors. According to the industry distribution chart, Clearwater Analytics Holdings ranks #1483 out of 2544 companies in the Software industry, placing it in the top 58.3%.
Is Clearwater Analytics Holdings' 3-Year RORE % too high?
Clearwater Analytics Holdings' current 3-Year RORE % is -7.04. Based on the distribution chart, Clearwater Analytics Holdings ranks #1483 out of 2544 companies in the Software industry, which is below the industry midpoint. Overall, Clearwater Analytics Holdings has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Clearwater Analytics Holdings' 3-Year RORE % compare to IDCC and CHYM?
According to the Software industry distribution chart, Clearwater Analytics Holdings ranks #1483 out of 2544 companies for 3-Year RORE %. This places Clearwater Analytics Holdings in the lower half of its industry. The industry median 3-Year RORE % is 3.08. 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 3.08, based on 2,544 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. 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 Clearwater Analytics Holdings and its competitors. For the Software 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. Clearwater Analytics Holdings's current 3-Year RORE % is -7.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clearwater Analytics Holdings stock overvalued right now?
Based on GuruFocus' analysis, Clearwater Analytics Holdings (CWAN) is currently considered Modestly Undervalued. The stock's GF Value™ is $32.08, compared to a current price of $24.56 — trading 23.4% below its estimated fair value. The current 3-Year RORE % is -7.04. Clearwater Analytics Holdings' overall GF Score™ is 60/100 with 7 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 Clearwater Analytics Holdings (CWAN), the current 3-Year RORE % is -7.04 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 Clearwater Analytics Holdings (CWAN) Overvalued in 2026?
Based on GuruFocus' analysis, Clearwater Analytics Holdings stock appears to be undervalued.
The current stock price of $24.56 is trading 23.4% below its estimated GF Value™ of $32.08.
GuruFocus considers Clearwater Analytics Holdings to be Modestly Undervalued.
Key valuation signals for CWAN:
3-Year RORE %: -7.04
GF Value™: $32.08 vs. price of $24.56 (23.4% below fair value)
No single metric tells the full story. See the CWAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Clearwater Analytics Holdings Business Description
Clearwater Analytics describes its mission as aiming to be the world's most trusted and comprehensive technology platform for the entire investment cycle. Clearwater has historically focused on back-office functions such as investment accounting, but with acquisitions such Enfusion, Beacon, and Bistro, the firm has broadened its focus with front-office and middle-office capabilities. Clearwater primarily serves insurance companies, asset managers, hedge funds, and corporate treasuries. Pro forma for Enfusion, about 76% of Clearwater's revenue is generated in the US.
60GF Score
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