Denka CoFRA:DIK 56 3-Year RORE % is -19.12 as of Mar. 2026. GuruFocus rates FRA:DIK with a GF Score™ of 56/100 and a GF Value™ of €12.38 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 1,518 Chemicals companies, Denka Co ranks worse than 80.04% on this metric.
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.
Denka Co's 3-Year RORE % for the quarter that ended in Mar. 2026 was -19.12%.
The industry rank for Denka Co's 3-Year RORE % or its related term are showing as below:
FRA:DIK's 3-Year RORE % is ranked worse than 80.04% of 1518
companies
in the Chemicals industry
Industry Median: 6.21
vs FRA:DIK: -19.12
Denka Co (FRA:DIK) 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.
Denka Co 3-Year RORE % Related Terms
Denka Co 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Denka Co'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.
For the Chemicals subindustry, Denka Co'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.
Denka Co 3-Year RORE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Denka Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Denka Co'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.
Denka Co (FRA:DIK) has a 3-Year RORE % of -19.12 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 Denka Co and its competitors. According to the industry distribution chart, Denka Co ranks #1215 out of 1518 companies in the Chemicals industry, placing it in the top 80%.
Is Denka Co's 3-Year RORE % too high?
Denka Co's current 3-Year RORE % is -19.12. Based on the distribution chart, Denka Co ranks #1215 out of 1518 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Denka Co has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Denka Co's 3-Year RORE % compare to DOW?
According to the Chemicals industry distribution chart, Denka Co ranks #1215 out of 1518 companies for 3-Year RORE %. This places Denka Co in the lower half of its industry. The industry median 3-Year RORE % is 6.21. 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 Chemicals company?
The median 3-Year RORE % among Chemicals companies is 6.21, based on 1,518 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 Denka Co and its competitors. For the Chemicals industry, the median 3-Year RORE % is 6.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Denka Co's current 3-Year RORE % is -19.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Denka Co stock overvalued right now?
Based on GuruFocus' analysis, Denka Co (FRA:DIK) is currently considered Significantly Overvalued. The stock's GF Value™ is €12.38, compared to a current price of €22.20 — trading 79.3% above its estimated fair value. The current 3-Year RORE % is -19.12. Denka Co's overall GF Score™ is 56/100 with 11 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 Denka Co (FRA:DIK), the current 3-Year RORE % is -19.12 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 Denka Co (FRA:DIK) Overvalued in 2026?
Based on GuruFocus' analysis, Denka Co stock appears to be overvalued.
The current stock price of €22.20 is trading 79.3% above its estimated GF Value™ of €12.38.
GuruFocus considers Denka Co to be Significantly Overvalued.
Key valuation signals for FRA:DIK:
3-Year RORE %: -19.12
GF Value™: €12.38 vs. price of €22.20 (79.3% above fair value)
No single metric tells the full story. See the FRA:DIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Denka Co Ltd manufactures and sells chemicals, plastics, and chemical-based products. The firm organizes itself into four segments based on product type. The elastomers and performance plastics segment, which generates more revenue than any other segment, sells rubber products used by the automotive industry and plastics used to manufacture electronics including televisions. The infrastructure and social solutions segment sells cement and fertilizer to the construction and building industries. The electronics and innovative products segment sells film, and resins used by the electronics industry. The life science and environment products segment sells housing materials including rain gutters, plastic food packaging materials, and industrial materials including electrical tape.
56GF Score
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