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.
ALA SpA's 3-Year RORE % for the quarter that ended in Jun. 2025 was 46.99%.
The industry rank for ALA SpA's 3-Year RORE % or its related term are showing as below:
FRA:8WD's 3-Year RORE % is not ranked
in the Industrial Distribution industry.
Industry Median: 3.355
vs FRA:8WD: 46.99
ALA SpA (FRA:8WD) 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.
ALA SpA 3-Year RORE % Related Terms
ALA SpA 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for ALA SpA'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:8WD vs GWW, FAST, FERG: 3-Year RORE % Comparison
For the Industrial Distribution subindustry, ALA SpA'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.
ALA SpA 3-Year RORE % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, ALA SpA's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where ALA SpA'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. 2025 and 3-year before.
ALA SpA (FRA:8WD) has a 3-Year RORE % of 46.99 as of Jun. 2025. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on ALA SpA and its competitors.
Is ALA SpA's 3-Year RORE % too high?
ALA SpA's current 3-Year RORE % is 46.99. The Industrial Distribution industry median 3-Year RORE % is 3.36. ALA SpA's value of 46.99 is 1300.6% above this industry median. Overall, ALA SpA has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does ALA SpA's 3-Year RORE % compare to GWW and FAST?
ALA SpA's 3-Year RORE % of 46.99 can be compared against companies in the Industrial Distribution industry. The industry median 3-Year RORE % is 3.36. ALA SpA's value of 46.99 is 1300.6% 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 Industrial Distribution company?
The median 3-Year RORE % among Industrial Distribution companies is 3.36, based on 146 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. ALA SpA's current 3-Year RORE % of 46.99 is 1300.6% 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 ALA SpA and its competitors. For the Industrial Distribution industry, the median 3-Year RORE % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALA SpA's current 3-Year RORE % is 46.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALA SpA stock overvalued right now?
ALA SpA (FRA:8WD) has a current 3-Year RORE % of 46.99. The stock's GF Value™ is €30.35, compared to a current price of €36.00 — trading 18.6% above its estimated fair value. The current 3-Year RORE % is 46.99 and 1300.6% above the Industrial Distribution industry median of 3.36. ALA SpA's overall GF Score™ is 66/100 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 ALA SpA (FRA:8WD), the current 3-Year RORE % is 46.99 as of Jun. 2025. 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 ALA SpA (FRA:8WD) Overvalued in 2026?
Based on GuruFocus' analysis, ALA SpA stock appears to be overvalued.
The current stock price of €36.00 is trading 18.6% above its estimated GF Value™ of €30.35.
Key valuation signals for FRA:8WD:
3-Year RORE %: 46.99
GF Value™: €30.35 vs. price of €36.00 (18.6% above fair value)
Industry Position: 1300.6% above the Industrial Distribution median
No single metric tells the full story. See the FRA:8WD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ALA SpA is a distributor and supply chain solutions provider to the industrial markets. It is involved in the distribution of components and equipment for use in the civil and military aeronautical sectors. The company also offers integrated logistics services for the rail, energy, and marine sectors. Its various product offerings include power systems, oxygen systems, gate valves, protection valves, fasteners, regulators, and others. Geographically, the company derives maximum revenue from its business in Italy and the rest from other parts of the European Union and other regions.
66GF 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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