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.
Formula Systems (1985)'s 3-Year RORE % for the quarter that ended in Mar. 2026 was 77.16%.
The industry rank for Formula Systems (1985)'s 3-Year RORE % or its related term are showing as below:
FRA:FSY's 3-Year RORE % is ranked better than 89.22% of 2541
companies
in the Software industry
Industry Median: 2.73
vs FRA:FSY: 77.16
Formula Systems (1985) (FRA:FSY) 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.
Formula Systems (1985) 3-Year RORE % Related Terms
Formula Systems (1985) 3-Year RORE % Historical Data
* 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:FSY vs IBM, ACN, FISV: 3-Year RORE % Comparison
For the Information Technology Services subindustry, Formula Systems (1985)'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.
Formula Systems (1985) 3-Year RORE % vs Software Industry
For the Software industry and Technology sector, Formula Systems (1985)'s 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Formula Systems (1985)'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.
Formula Systems (1985) (FRA:FSY) has a 3-Year RORE % of 77.16 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 Formula Systems (1985) and its competitors. According to the industry distribution chart, Formula Systems (1985) ranks #274 out of 2541 companies in the Software industry, placing it in the top 10.8%.
Is Formula Systems (1985)'s 3-Year RORE % too high?
Formula Systems (1985)'s current 3-Year RORE % is 77.16. The Software industry median 3-Year RORE % is 2.73. Formula Systems (1985)'s value of 77.16 is 2726.4% above this industry median. Based on the distribution chart, Formula Systems (1985) ranks #274 out of 2541 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Formula Systems (1985) has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formula Systems (1985)'s 3-Year RORE % compare to IBM and ACN?
According to the Software industry distribution chart, Formula Systems (1985) ranks #274 out of 2541 companies for 3-Year RORE %. This places Formula Systems (1985) in the top 11% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 2.73. Formula Systems (1985)'s value of 77.16 is 2726.4% 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 Software company?
The median 3-Year RORE % among Software companies is 2.73, based on 2,541 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. Formula Systems (1985)'s current 3-Year RORE % of 77.16 is 2726.4% 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 Formula Systems (1985) and its competitors. For the Software industry, the median 3-Year RORE % is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formula Systems (1985)'s current 3-Year RORE % is 77.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formula Systems (1985) stock overvalued right now?
Based on GuruFocus' analysis, Formula Systems (1985) (FRA:FSY) is currently considered Modestly Undervalued. The stock's GF Value™ is €100.75, compared to a current price of €88.00 — trading 12.7% below its estimated fair value. The current 3-Year RORE % is 77.16 and 2726.4% above the Software industry median of 2.73. Formula Systems (1985)'s overall GF Score™ is 69/100 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 Formula Systems (1985) (FRA:FSY), the current 3-Year RORE % is 77.16 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 Formula Systems (1985) (FRA:FSY) Overvalued in 2026?
Based on GuruFocus' analysis, Formula Systems (1985) stock appears to be undervalued.
The current stock price of €88.00 is trading 12.7% below its estimated GF Value™ of €100.75.
GuruFocus considers Formula Systems (1985) to be Modestly Undervalued.
Key valuation signals for FRA:FSY:
3-Year RORE %: 77.16
GF Value™: €100.75 vs. price of €88.00 (12.7% below fair value)
Industry Position: 2726.4% above the Software median (#274 of 2541)
No single metric tells the full story. See the FRA:FSY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formula Systems (1985) Ltd is an information technology company that is principally engaged through its directly and indirectly held investees in providing software consulting services, selling and marketing computer-based business solutions and hardware products from a wide range of domestic and international manufacturers, as well as developing proprietary software solutions. It delivers solutions in Israel and in numerous countries to customers with complex IT services needs. It designs and implements IT solutions and software systems that improve the productivity of customers' existing IT assets, enable them to effectively manage their operations and reduce their business risks in the face of changing business environments.
69GF Score
Get the complete analysis for FRA:FSY
3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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