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.
Federated Hermes's 3-Year RORE % for the quarter that ended in Mar. 2026 was 15.45%.
The industry rank for Federated Hermes's 3-Year RORE % or its related term are showing as below:
FRA:3KC's 3-Year RORE % is ranked better than 53.75% of 1533
companies
in the Asset Management industry
Industry Median: 12.5
vs FRA:3KC: 15.45
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.
Federated Hermes 3-Year RORE % Related Terms
Federated Hermes 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Federated Hermes'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.
FRA:3KC vs DNP, CNS, MAIN: 3-Year RORE % Comparison
For the Asset Management subindustry, Federated Hermes'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.
Federated Hermes 3-Year RORE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Federated Hermes'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.
Federated Hermes (FRA:3KC) has a 3-Year RORE % of 15.45 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 Federated Hermes and its competitors. According to the industry distribution chart, Federated Hermes ranks #709 out of 1533 companies in the Asset Management industry, placing it in the top 46.2%.
Is Federated Hermes' 3-Year RORE % too high?
Federated Hermes' current 3-Year RORE % is 15.45. The Asset Management industry median 3-Year RORE % is 12.50. Federated Hermes' value of 15.45 is 23.6% above this industry median. Based on the distribution chart, Federated Hermes ranks #709 out of 1533 companies in the Asset Management industry, which is above the industry midpoint. Overall, Federated Hermes has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' 3-Year RORE % compare to DNP and CNS?
According to the Asset Management industry distribution chart, Federated Hermes ranks #709 out of 1533 companies for 3-Year RORE %. This puts Federated Hermes in the upper half of its industry. The industry median 3-Year RORE % is 12.50. Federated Hermes' value of 15.45 is 23.6% 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 Asset Management company?
The median 3-Year RORE % among Asset Management companies is 12.50, based on 1,533 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. Federated Hermes's current 3-Year RORE % of 15.45 is 23.6% 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 Federated Hermes and its competitors. For the Asset Management industry, the median 3-Year RORE % is 12.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current 3-Year RORE % is 15.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Federated Hermes stock overvalued right now?
Based on GuruFocus' analysis, Federated Hermes (FRA:3KC) is currently considered Modestly Overvalued. The stock's GF Value™ is €43.35, compared to a current price of €51.00 — trading 17.6% above its estimated fair value. The current 3-Year RORE % is 15.45 and 23.6% above the Asset Management industry median of 12.50. Federated Hermes' overall GF Score™ is 84/100 with 6 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 Federated Hermes (FRA:3KC), the current 3-Year RORE % is 15.45 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 Federated Hermes (FRA:3KC) Overvalued in 2026?
Based on GuruFocus' analysis, Federated Hermes stock appears to be overvalued.
The current stock price of €51.00 is trading 17.6% above its estimated GF Value™ of €43.35.
GuruFocus considers Federated Hermes to be Modestly Overvalued.
Key valuation signals for FRA:3KC:
3-Year RORE %: 15.45
GF Value™: €43.35 vs. price of €51.00 (17.6% above fair value)
Industry Position: 23.6% above the Asset Management median (#709 of 1533)
No single metric tells the full story. See the FRA:3KC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Federated Hermes provides asset management services for institutional and individual investors. The firm had $902.6 billion in managed assets at the end of 2025, composed of equity (11%), multi-asset (less than 1%), fixed-income (11%), alternative (2%), and money market (76%) funds. The firm's cash management operations are expected to generate around 55% of Federated's revenue this year, compared with 27%, 10%, and 8%, respectively, for the equity, fixed-income, and alternatives/multi-asset/other operations. The company's products are distributed via trust banks, wealth managers, and retail broker/dealers (68% of AUM), institutional investors (25%), and international clients (7%).
84GF Score
Get the complete analysis for FRA:3KC
3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:3KC has been successfully added to your 
