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.
Grafton Group does not have enough data to calculate 3-Year RORE %.
Grafton Group (OTCPK:GROUF) 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.
Grafton Group 3-Year RORE % Related Terms
Grafton Group 3-Year RORE % Historical Data
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The historical data trend for Grafton Group'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.
GROUF vs FAST, GWW, FERG: 3-Year RORE % Comparison
For the Industrial Distribution subindustry, Grafton Group'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.
Grafton Group 3-Year RORE % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Grafton Group's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Grafton Group'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 Dec. 2025 and 3-year before.
Grafton Group (GROUF) has a 3-Year RORE % of 25.84 as of Dec. 2025. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Grafton Group and its competitors.
Is Grafton Group's 3-Year RORE % too high?
Grafton Group's current 3-Year RORE % is 25.84. The Industrial Distribution industry median 3-Year RORE % is 3.40. Grafton Group's value of 25.84 is 660% above this industry median.
How does Grafton Group's 3-Year RORE % compare to FAST and GWW?
Grafton Group's 3-Year RORE % of 25.84 can be compared against companies in the Industrial Distribution industry. The industry median 3-Year RORE % is 3.40. Grafton Group's value of 25.84 is 660% 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 Industrial Distribution company?
The median 3-Year RORE % among Industrial Distribution companies is 3.40, based on 145 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. Grafton Group's current 3-Year RORE % of 25.84 is 660% 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 Grafton Group and its competitors. For the Industrial Distribution industry, the median 3-Year RORE % is 3.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grafton Group's current 3-Year RORE % is 25.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grafton Group stock overvalued right now?
Based on GuruFocus' analysis, Grafton Group (GROUF) is currently considered Modestly Overvalued. The stock's GF Value™ is $9.59, compared to a current price of $11.05 — trading 15.2% above its estimated fair value. The current 3-Year RORE % is 25.84 and 660% above the Industrial Distribution industry median of 3.40. 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 Grafton Group (GROUF), the current 3-Year RORE % is 25.84 as of Dec. 2025. 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.
Grafton Group PLC is a distributor of building materials that operates in three segments; The Distribution segment is into the distribution of building and plumbing materials to professional tradespeople engaged in residential repair, maintenance, and improvement projects and also in residential and other new build construction, The Retailing segment operates DIY and home improvement business from a network of stores that supply mainly retail customers with wide products for DIY and for the home and garden, and The Manufacturing segment is into the manufacture of dry mortar in Great Britain. The company also operates in residential and other new build construction. Geographically, the company generates over half of its revenue from the United Kingdom.
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