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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.
EM Systems Co's 3-Year RORE % for the quarter that ended in Dec. 2025 was 40.26%.
The industry rank for EM Systems Co's 3-Year RORE % or its related term are showing as below:
FRA:EMO's 3-Year RORE % is ranked better than 89.7% of 602
companies
in the Healthcare Providers & Services industry
Industry Median: 0.35
vs FRA:EMO: 40.26
EM Systems Co (FRA:EMO) 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.
EM Systems Co 3-Year RORE % Related Terms
EM Systems Co 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for EM Systems 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.
FRA:EMO vs VEEV, BTSG, TEM: 3-Year RORE % Comparison
For the Health Information Services subindustry, EM Systems 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.
EM Systems Co 3-Year RORE % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, EM Systems Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where EM Systems 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 Dec. 2025 and 3-year before.
EM Systems Co (FRA:EMO) has a 3-Year RORE % of 40.26 as of Dec. 2025. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on EM Systems Co and its competitors. According to the industry distribution chart, EM Systems Co ranks #62 out of 602 companies in the Healthcare Providers & Services industry, placing it in the top 10.3%.
Is EM Systems Co's 3-Year RORE % too high?
EM Systems Co's current 3-Year RORE % is 40.26. The Healthcare Providers & Services industry median 3-Year RORE % is 0.35. EM Systems Co's value of 40.26 is 11402.9% above this industry median. Based on the distribution chart, EM Systems Co ranks #62 out of 602 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, EM Systems Co has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does EM Systems Co's 3-Year RORE % compare to VEEV and BTSG?
According to the Healthcare Providers & Services industry distribution chart, EM Systems Co ranks #62 out of 602 companies for 3-Year RORE %. This places EM Systems Co in the top 10% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 0.35. EM Systems Co's value of 40.26 is 11402.9% 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 a Healthcare Providers & Services company?
The median 3-Year RORE % among Healthcare Providers & Services companies is 0.35, based on 602 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. EM Systems Co's current 3-Year RORE % of 40.26 is 11402.9% 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 EM Systems Co and its competitors. For the Healthcare Providers & Services industry, the median 3-Year RORE % is 0.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EM Systems Co's current 3-Year RORE % is 40.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EM Systems Co stock overvalued right now?
EM Systems Co (FRA:EMO) has a current 3-Year RORE % of 40.26. The stock's GF Value™ is €3.88, compared to a current price of €2.68 — trading 30.9% below its estimated fair value. The current 3-Year RORE % is 40.26 and 11402.9% above the Healthcare Providers & Services industry median of 0.35. EM Systems Co's overall GF Score™ is 74/100 with 4 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 EM Systems Co (FRA:EMO), the current 3-Year RORE % is 40.26 as of Dec. 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 EM Systems Co (FRA:EMO) Overvalued in 2026?
Based on GuruFocus' analysis, EM Systems Co stock appears to be undervalued.
The current stock price of €2.68 is trading 30.9% below its estimated GF Value™ of €3.88.
Key valuation signals for FRA:EMO:
3-Year RORE %: 40.26
GF Value™: €3.88 vs. price of €2.68 (30.9% below fair value)
Industry Position: 11402.9% above the Healthcare Providers & Services median (#62 of 602)
No single metric tells the full story. See the FRA:EMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EM Systems Co Ltd is a Japan-based company that develops, sells, and maintains systems for the medical (clinics and insurance pharmacies) and nursing/welfare industries. It operates its business in three divisions: Pharmacy System Business develops and sells systems for pharmacies, and provides related supplies and maintenance services; Medical system involved in the development and sales of medical office administration computer systems for medical institutions and clinics; Nursing Care/Welfare Systems Business products are systems for nursing care/welfare service providers and medical and nursing care collaboration solutions; Other businesses operates through its subsidiray that provides promotes cashless payments for clinics and pharmacies and Others services.
74GF Score
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