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.
Sumitomo Realty & Development Co's 3-Year RORE % for the quarter that ended in Mar. 2026 was 3.67%.
FRA:RL2's 3-Year RORE % is ranked better than 52.67% of 1686
companies
in the Real Estate industry
Industry Median: 5.24
vs FRA:RL2: 3.67
Sumitomo Realty & Development Co (FRA:RL2) 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.
Sumitomo Realty & Development Co 3-Year RORE % Related Terms
Sumitomo Realty & Development Co 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.
Sumitomo Realty & Development Co 3-Year RORE % Chart
FRA:RL2 vs CBRE, BEKE, JLL: 3-Year RORE % Comparison
For the Real Estate Services subindustry, Sumitomo Realty & Development 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.
Sumitomo Realty & Development Co 3-Year RORE % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Sumitomo Realty & Development Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Sumitomo Realty & Development 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.
Sumitomo Realty & Development Co (FRA:RL2) has a 3-Year RORE % of 3.67 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 Sumitomo Realty & Development Co and its competitors. According to the industry distribution chart, Sumitomo Realty & Development Co ranks #798 out of 1686 companies in the Real Estate industry, placing it in the top 47.3%.
Is Sumitomo Realty & Development Co's 3-Year RORE % too high?
Sumitomo Realty & Development Co's current 3-Year RORE % is 3.67. The Real Estate industry median 3-Year RORE % is 5.24. Sumitomo Realty & Development Co's value of 3.67 is 30% below this industry median. Based on the distribution chart, Sumitomo Realty & Development Co ranks #798 out of 1686 companies in the Real Estate industry, which is above the industry midpoint. Overall, Sumitomo Realty & Development Co has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Realty & Development Co's 3-Year RORE % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Sumitomo Realty & Development Co ranks #798 out of 1686 companies for 3-Year RORE %. This puts Sumitomo Realty & Development Co in the upper half of its industry. The industry median 3-Year RORE % is 5.24. Sumitomo Realty & Development Co's value of 3.67 is 30% below 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 Real Estate company?
The median 3-Year RORE % among Real Estate companies is 5.24, based on 1,686 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. Sumitomo Realty & Development Co's current 3-Year RORE % of 3.67 is 30% below 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 Sumitomo Realty & Development Co and its competitors. For the Real Estate industry, the median 3-Year RORE % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Realty & Development Co's current 3-Year RORE % is 3.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Realty & Development Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Realty & Development Co (FRA:RL2) is currently considered Significantly Overvalued. The stock's GF Value™ is €14.99, compared to a current price of €21.00 — trading 40.1% above its estimated fair value. The current 3-Year RORE % is 3.67 and 30% below the Real Estate industry median of 5.24. Sumitomo Realty & Development Co's overall GF Score™ is 78/100 with 3 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 Sumitomo Realty & Development Co (FRA:RL2), the current 3-Year RORE % is 3.67 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 Sumitomo Realty & Development Co (FRA:RL2) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Realty & Development Co stock appears to be overvalued.
The current stock price of €21.00 is trading 40.1% above its estimated GF Value™ of €14.99.
GuruFocus considers Sumitomo Realty & Development Co to be Significantly Overvalued.
Key valuation signals for FRA:RL2:
3-Year RORE %: 3.67
GF Value™: €14.99 vs. price of €21.00 (40.1% above fair value)
Industry Position: 30% below the Real Estate median (#798 of 1686)
No single metric tells the full story. See the FRA:RL2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Realty & Development Co Business Description
Sumitomo Realty & Development is a Japan-based company engaged in the real estate business. The company operates through four segments. The Completed Construction segment covers construction and renovation contracts for detached houses and condominiums. The Real Estate Distribution segment involves brokerage and sales agency services. The Real Estate Rental segment includes leasing and management of office buildings, condominiums, hotels, event halls, and commercial facilities. The Real Estate Sales segment focuses on condominiums and detached houses, and the Others segment covers businesses such as fitness clubs and restaurants. It generates the majority of its revenue from the Real estate rental segment.
78GF Score
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