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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.
L E Lundbergforetagen AB's 3-Year RORE % for the quarter that ended in Mar. 2026 was 21.74%.
The industry rank for L E Lundbergforetagen AB's 3-Year RORE % or its related term are showing as below:
FRA:LU3B's 3-Year RORE % is ranked better than 65.19% of 543
companies
in the Conglomerates industry
Industry Median: 6.82
vs FRA:LU3B: 21.74
L E Lundbergforetagen AB (FRA:LU3B) 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.
L E Lundbergforetagen AB 3-Year RORE % Related Terms
L E Lundbergforetagen AB 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.
For the Conglomerates subindustry, L E Lundbergforetagen 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.
L E Lundbergforetagen AB 3-Year RORE % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, L E Lundbergforetagen AB's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where L E Lundbergforetagen 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 Mar. 2026 and 3-year before.
L E Lundbergforetagen AB (FRA:LU3B) has a 3-Year RORE % of 21.74 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 L E Lundbergforetagen AB and its competitors. According to the industry distribution chart, L E Lundbergforetagen AB ranks #189 out of 543 companies in the Conglomerates industry, placing it in the top 34.8%.
Is L E Lundbergforetagen AB's 3-Year RORE % too high?
L E Lundbergforetagen AB's current 3-Year RORE % is 21.74. The Conglomerates industry median 3-Year RORE % is 6.82. L E Lundbergforetagen AB's value of 21.74 is 218.8% above this industry median. Based on the distribution chart, L E Lundbergforetagen AB ranks #189 out of 543 companies in the Conglomerates industry, which is above the industry midpoint. Overall, L E Lundbergforetagen AB has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does L E Lundbergforetagen AB's 3-Year RORE % compare to HON and MMM?
According to the Conglomerates industry distribution chart, L E Lundbergforetagen AB ranks #189 out of 543 companies for 3-Year RORE %. This puts L E Lundbergforetagen AB in the upper half of its industry. The industry median 3-Year RORE % is 6.82. L E Lundbergforetagen AB's value of 21.74 is 218.8% 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 Conglomerates company?
The median 3-Year RORE % among Conglomerates companies is 6.82, based on 543 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. L E Lundbergforetagen AB's current 3-Year RORE % of 21.74 is 218.8% 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 L E Lundbergforetagen AB and its competitors. For the Conglomerates industry, the median 3-Year RORE % is 6.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L E Lundbergforetagen AB's current 3-Year RORE % is 21.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L E Lundbergforetagen AB stock overvalued right now?
Based on GuruFocus' analysis, L E Lundbergforetagen AB (FRA:LU3B) is currently considered Modestly Overvalued. The stock's GF Value™ is €44.10, compared to a current price of €49.08 — trading 11.3% above its estimated fair value. The current 3-Year RORE % is 21.74 and 218.8% above the Conglomerates industry median of 6.82. L E Lundbergforetagen AB's overall GF Score™ is 71/100 with 7 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 L E Lundbergforetagen AB (FRA:LU3B), the current 3-Year RORE % is 21.74 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 L E Lundbergforetagen AB (FRA:LU3B) Overvalued in 2026?
Based on GuruFocus' analysis, L E Lundbergforetagen AB stock appears to be overvalued.
The current stock price of €49.08 is trading 11.3% above its estimated GF Value™ of €44.10.
GuruFocus considers L E Lundbergforetagen AB to be Modestly Overvalued.
Key valuation signals for FRA:LU3B:
3-Year RORE %: 21.74
GF Value™: €44.10 vs. price of €49.08 (11.3% above fair value)
Industry Position: 218.8% above the Conglomerates median (#189 of 543)
No single metric tells the full story. See the FRA:LU3B stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
L E Lundbergforetagen AB is an investment holding company with a long-term, activist orientation. Its portfolio includes a wholly owned unlisted real estate entity, publicly-traded subsidiaries, and other shareholdings. Lundberg's investment objective is to generate returns on capital that over time substantially exceed the yield on a risk-free, interest-bearing instrument. Real estate operations, which the company has conducted through subsidiaries for decades, account for nearly half of the company's net asset value. Lundberg exercises activism through board representation on all of its portfolio companies. It supports its capital allocation program by maintaining low levels of indebtedness on its balance sheet.
71GF Score
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