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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.
Addnode Group AB's 3-Year RORE % for the quarter that ended in Jun. 2026 was 2.42%.
The industry rank for Addnode Group AB's 3-Year RORE % or its related term are showing as below:
FRA:AR7's 3-Year RORE % is ranked worse than 52.63% of 2565
companies
in the Software industry
Industry Median: 3.26
vs FRA:AR7: 2.42
Addnode Group AB (FRA:AR7) 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.
Addnode Group AB 3-Year RORE % Related Terms
Addnode Group AB 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Addnode Group AB'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:AR7 vs IBM, ACN, FISV: 3-Year RORE % Comparison
For the Information Technology Services subindustry, Addnode Group AB'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.
Addnode Group AB 3-Year RORE % vs Software Industry
For the Software industry and Technology sector, Addnode Group AB's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Addnode Group AB'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. 2026 and 3-year before.
Addnode Group AB (FRA:AR7) has a 3-Year RORE % of 2.42 as of Jun. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Addnode Group AB and its competitors. According to the industry distribution chart, Addnode Group AB ranks #1350 out of 2565 companies in the Software industry, placing it in the top 52.6%.
Is Addnode Group AB's 3-Year RORE % too high?
Addnode Group AB's current 3-Year RORE % is 2.42. The Software industry median 3-Year RORE % is 3.26. Addnode Group AB's value of 2.42 is 25.8% below this industry median. Based on the distribution chart, Addnode Group AB ranks #1350 out of 2565 companies in the Software industry, which is below the industry midpoint. Overall, Addnode Group AB has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Addnode Group AB's 3-Year RORE % compare to IBM and ACN?
According to the Software industry distribution chart, Addnode Group AB ranks #1350 out of 2565 companies for 3-Year RORE %. This places Addnode Group AB in the lower half of its industry. The industry median 3-Year RORE % is 3.26. Addnode Group AB's value of 2.42 is 25.8% below 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 Software company?
The median 3-Year RORE % among Software companies is 3.26, based on 2,565 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. Addnode Group AB's current 3-Year RORE % of 2.42 is 25.8% below 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 Addnode Group AB and its competitors. For the Software industry, the median 3-Year RORE % is 3.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Addnode Group AB's current 3-Year RORE % is 2.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Addnode Group AB stock overvalued right now?
Based on GuruFocus' analysis, Addnode Group AB (FRA:AR7) is currently considered Possible Value Trap. The stock's GF Value™ is €6.09, compared to a current price of €3.42 — trading 43.9% below its estimated fair value. The current 3-Year RORE % is 2.42 and 25.8% below the Software industry median of 3.26. Addnode Group AB's overall GF Score™ is 75/100 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 Addnode Group AB (FRA:AR7), the current 3-Year RORE % is 2.42 as of Jun. 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 Addnode Group AB (FRA:AR7) Overvalued in 2026?
Based on GuruFocus' analysis, Addnode Group AB stock appears to be undervalued.
The current stock price of €3.42 is trading 43.9% below its estimated GF Value™ of €6.09.
GuruFocus considers Addnode Group AB to be Possible Value Trap.
Key valuation signals for FRA:AR7:
3-Year RORE %: 2.42
GF Value™: €6.09 vs. price of €3.42 (43.9% below fair value)
Industry Position: 25.8% below the Software median (#1350 of 2565)
No single metric tells the full story. See the FRA:AR7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Addnode Group AB acquires, operates, and develops businesses that provide digital technologies and services in Sweden. Its operations are divided into three business divisions: The Design Management business, the Product Lifecycle Management (PLM) and the Process Management business. The majority of revenue is derived from the Design Management business, which offers digital solutions and services for design, BIM, product data and facility management for architects and engineers in the manufacturing and construction industries, in both private and public sector. Geographically, the company generates the maximum revenue from Sweden and the rest from the USA, UK, Germany, Norway, etc.
75GF 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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