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.
Severn Trent's 3-Year RORE % for the quarter that ended in Mar. 2026 was 88.32%.
The industry rank for Severn Trent's 3-Year RORE % or its related term are showing as below:
FRA:SVT's 3-Year RORE % is ranked worse than 91.3% of 494
companies
in the Utilities - Regulated industry
Industry Median: 6.755
vs FRA:SVT: 88.32
Severn Trent (FRA:SVT) 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.
Severn Trent 3-Year RORE % Related Terms
Severn Trent 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Severn Trent'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:SVT vs AWK, WTRG, AWR: 3-Year RORE % Comparison
For the Utilities - Regulated Water subindustry, Severn Trent'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.
Severn Trent 3-Year RORE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Severn Trent's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Severn Trent'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.
Severn Trent (FRA:SVT) has a 3-Year RORE % of 88.32 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 Severn Trent and its competitors. According to the industry distribution chart, Severn Trent ranks #451 out of 494 companies in the Utilities - Regulated industry, placing it in the top 91.3%.
Is Severn Trent's 3-Year RORE % too high?
Severn Trent's current 3-Year RORE % is 88.32. The Utilities - Regulated industry median 3-Year RORE % is 6.76. Severn Trent's value of 88.32 is 1207.5% above this industry median. Based on the distribution chart, Severn Trent ranks #451 out of 494 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, Severn Trent has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Severn Trent's 3-Year RORE % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Severn Trent ranks #451 out of 494 companies for 3-Year RORE %. This places Severn Trent in the lower half of its industry. The industry median 3-Year RORE % is 6.76. Severn Trent's value of 88.32 is 1207.5% 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 Utilities - Regulated company?
The median 3-Year RORE % among Utilities - Regulated companies is 6.76, based on 494 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. Severn Trent's current 3-Year RORE % of 88.32 is 1207.5% 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 Severn Trent and its competitors. For the Utilities - Regulated industry, the median 3-Year RORE % is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Severn Trent's current 3-Year RORE % is 88.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Severn Trent stock overvalued right now?
Based on GuruFocus' analysis, Severn Trent (FRA:SVT) is currently considered Fairly Valued. The stock's GF Value™ is €34.91, compared to a current price of €34.40 — trading 1.5% below its estimated fair value. The current 3-Year RORE % is 88.32 and 1207.5% above the Utilities - Regulated industry median of 6.76. Severn Trent's overall GF Score™ is 61/100 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 Severn Trent (FRA:SVT), the current 3-Year RORE % is 88.32 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 Severn Trent (FRA:SVT) Overvalued in 2026?
Based on GuruFocus' analysis, Severn Trent stock appears to be undervalued.
The current stock price of €34.40 is trading 1.5% below its estimated GF Value™ of €34.91.
GuruFocus considers Severn Trent to be Fairly Valued.
Key valuation signals for FRA:SVT:
3-Year RORE %: 88.32
GF Value™: €34.91 vs. price of €34.40 (1.5% below fair value)
Industry Position: 1207.5% above the Utilities - Regulated median (#451 of 494)
No single metric tells the full story. See the FRA:SVT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Severn Trent PLC is a United Kingdom-based water utilities company. It mainly operates in the U.K., but also in the United States and other countries in Europe. The company derives the majority of its revenue from its regulated water and wastewater segment, which supplies water and conducts sewage and environmental services. The company also operates a business services segment that is involved with renewable energy operations. The company provides contract services to industrial and municipal clients to develop water treatment facilities and networks. The firm generates its renewable energy by using hydropower, wind power, and solar power.
61GF Score
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