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Prospect CapitalFRA:RK8 -3.17%19 3-Year RORE % is 20.41 as of Mar. 2026. GuruFocus rates FRA:RK8 with a GF Score™ of 19/100. The stock has 1 warning sign investors should review. Among 1,533 Asset Management companies, Prospect Capital ranks better than 54.92% 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.
Prospect Capital's 3-Year RORE % for the quarter that ended in Mar. 2026 was 20.41%.
The industry rank for Prospect Capital's 3-Year RORE % or its related term are showing as below:
FRA:RK8's 3-Year RORE % is ranked better than 54.92% of 1533
companies
in the Asset Management industry
Industry Median: 12.31
vs FRA:RK8: 20.41
Prospect Capital (FRA:RK8) 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.
Prospect Capital 3-Year RORE % Related Terms
Prospect Capital 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Prospect Capital'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:RK8 vs FRBP, CRF, EOS: 3-Year RORE % Comparison
For the Asset Management subindustry, Prospect Capital'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.
Prospect Capital 3-Year RORE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Prospect Capital's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Prospect Capital'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.
Prospect Capital (FRA:RK8) has a 3-Year RORE % of 20.41 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 Prospect Capital and its competitors. According to the industry distribution chart, Prospect Capital ranks #691 out of 1533 companies in the Asset Management industry, placing it in the top 45.1%.
Is Prospect Capital's 3-Year RORE % too high?
Prospect Capital's current 3-Year RORE % is 20.41. The Asset Management industry median 3-Year RORE % is 12.31. Prospect Capital's value of 20.41 is 65.8% above this industry median. Based on the distribution chart, Prospect Capital ranks #691 out of 1533 companies in the Asset Management industry, which is above the industry midpoint. Overall, Prospect Capital has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Prospect Capital's 3-Year RORE % compare to FRBP and CRF?
According to the Asset Management industry distribution chart, Prospect Capital ranks #691 out of 1533 companies for 3-Year RORE %. This puts Prospect Capital in the upper half of its industry. The industry median 3-Year RORE % is 12.31. Prospect Capital's value of 20.41 is 65.8% 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 an Asset Management company?
The median 3-Year RORE % among Asset Management companies is 12.31, based on 1,533 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. Prospect Capital's current 3-Year RORE % of 20.41 is 65.8% 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 Prospect Capital and its competitors. For the Asset Management industry, the median 3-Year RORE % is 12.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prospect Capital's current 3-Year RORE % is 20.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prospect Capital stock overvalued right now?
Prospect Capital (FRA:RK8) has a current 3-Year RORE % of 20.41. The current 3-Year RORE % is 20.41 and 65.8% above the Asset Management industry median of 12.31. Prospect Capital's overall GF Score™ is 19/100 with 1 warning sign 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 Prospect Capital (FRA:RK8), the current 3-Year RORE % is 20.41 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.
Prospect Capital Corp is a closed-end investment company based in the United States. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. The company invests mainly in senior and subordinated debt and equity of private companies for acquisitions, divestitures, growth, development, recapitalizations, and other purposes. It makes investments, including lending in private equity, sponsored transactions, directly to companies, investments in structured credit, real estate, and syndicated debt.
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