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.
Palo Alto Networks's 3-Year RORE % for the quarter that ended in Apr. 2026 was -36.35%.
The industry rank for Palo Alto Networks's 3-Year RORE % or its related term are showing as below:
HAM:5AP's 3-Year RORE % is ranked worse than 74.11% of 2538
companies
in the Software industry
Industry Median: 2.99
vs HAM:5AP: -36.35
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.
Palo Alto Networks 3-Year RORE % Related Terms
Palo Alto Networks 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Palo Alto Networks'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.
HAM:5AP vs PLTR, CRWD, FTNT: 3-Year RORE % Comparison
For the Software - Infrastructure subindustry, Palo Alto Networks'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.
Palo Alto Networks 3-Year RORE % vs Software Industry
For the Software industry and Technology sector, Palo Alto Networks's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Palo Alto Networks'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 Apr. 2026 and 3-year before.
Palo Alto Networks (HAM:5AP) has a 3-Year RORE % of -36.35 as of Apr. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Palo Alto Networks and its competitors. According to the industry distribution chart, Palo Alto Networks ranks #1881 out of 2538 companies in the Software industry, placing it in the top 74.1%.
Is Palo Alto Networks' 3-Year RORE % too high?
Palo Alto Networks' current 3-Year RORE % is -36.35. Based on the distribution chart, Palo Alto Networks ranks #1881 out of 2538 companies in the Software industry, which is below the industry midpoint. Overall, Palo Alto Networks has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palo Alto Networks' 3-Year RORE % compare to PLTR and CRWD?
According to the Software industry distribution chart, Palo Alto Networks ranks #1881 out of 2538 companies for 3-Year RORE %. This places Palo Alto Networks in the lower half of its industry. The industry median 3-Year RORE % is 2.99. 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 Software company?
The median 3-Year RORE % among Software companies is 2.99, based on 2,538 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. 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 Palo Alto Networks and its competitors. For the Software industry, the median 3-Year RORE % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palo Alto Networks's current 3-Year RORE % is -36.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palo Alto Networks stock overvalued right now?
Based on GuruFocus' analysis, Palo Alto Networks (HAM:5AP) is currently considered Significantly Overvalued. The stock's GF Value™ is €179.76, compared to a current price of €303.20 — trading 68.7% above its estimated fair value. The current 3-Year RORE % is -36.35. Palo Alto Networks' overall GF Score™ is 76/100 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 Palo Alto Networks (HAM:5AP), the current 3-Year RORE % is -36.35 as of Apr. 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 Palo Alto Networks (HAM:5AP) Overvalued in 2026?
Based on GuruFocus' analysis, Palo Alto Networks stock appears to be overvalued.
The current stock price of €303.20 is trading 68.7% above its estimated GF Value™ of €179.76.
GuruFocus considers Palo Alto Networks to be Significantly Overvalued.
Key valuation signals for HAM:5AP:
3-Year RORE %: -36.35
GF Value™: €179.76 vs. price of €303.20 (68.7% above fair value)
No single metric tells the full story. See the HAM:5AP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations. The California-based firm has more than 80,000 enterprise customers across the world, including more than three-fourths of the Global 2000.
76GF Score
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