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.
Hongli Group's 3-Year RORE % for the quarter that ended in Dec. 2025 was 400.00%.
The industry rank for Hongli Group's 3-Year RORE % or its related term are showing as below:
HLP's 3-Year RORE % is ranked better than 96.47% of 595
companies
in the Steel industry
Industry Median: 0.19
vs HLP: 400.00
Hongli Group (NAS:HLP) 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.
Hongli Group 3-Year RORE % Related Terms
Hongli Group 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Hongli 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.
For the Steel subindustry, Hongli 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.
Hongli Group 3-Year RORE % vs Steel Industry
For the Steel industry and Basic Materials sector, Hongli Group's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Hongli 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.
Hongli Group (HLP) has a 3-Year RORE % of 400.00 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 Hongli Group and its competitors. According to the industry distribution chart, Hongli Group ranks #21 out of 595 companies in the Steel industry, placing it in the top 3.5%.
Is Hongli Group's 3-Year RORE % too high?
Hongli Group's current 3-Year RORE % is 400.00. The Steel industry median 3-Year RORE % is 0.19. Hongli Group's value of 400.00 is 210426.3% above this industry median. Based on the distribution chart, Hongli Group ranks #21 out of 595 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Hongli Group has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hongli Group's 3-Year RORE % compare to HUDI and ZKIN?
According to the Steel industry distribution chart, Hongli Group ranks #21 out of 595 companies for 3-Year RORE %. This places Hongli Group in the top 4% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 0.19. Hongli Group's value of 400.00 is 210426.3% 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 a Steel company?
The median 3-Year RORE % among Steel companies is 0.19, based on 595 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. Hongli Group's current 3-Year RORE % of 400.00 is 210426.3% 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 Hongli Group and its competitors. For the Steel industry, the median 3-Year RORE % is 0.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongli Group's current 3-Year RORE % is 400.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongli Group stock overvalued right now?
Based on GuruFocus' analysis, Hongli Group (HLP) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.35, compared to a current price of $1.17 — trading 234.3% above its estimated fair value. The current 3-Year RORE % is 400.00 and 210426.3% above the Steel industry median of 0.19. Hongli Group's overall GF Score™ is 41/100 with 5 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 Hongli Group (HLP), the current 3-Year RORE % is 400.00 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.
Is Hongli Group (HLP) Overvalued in 2026?
Based on GuruFocus' analysis, Hongli Group stock appears to be overvalued.
The current stock price of $1.17 is trading 234.3% above its estimated GF Value™ of $0.35.
GuruFocus considers Hongli Group to be Significantly Overvalued.
Key valuation signals for HLP:
3-Year RORE %: 400.00
GF Value™: $0.35 vs. price of $1.17 (234.3% above fair value)
Industry Position: 210426.3% above the Steel median (#21 of 595)
No single metric tells the full story. See the HLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongli Group Inc is an offshore holding company. Through its subsidiaries, it is engaged in the cold-rolled steel profile manufacturing in China. Its main business operation focuses on the design, production, deep processing, and sales of custom-made profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture, and transportation industries. The group operates in a single segment, which manufactures and sells agricultural machinery cab assemblies, construction machinery cab assemblies, excavator cab assemblies, and special-shaped steel pipes. It generates the majority of its reveneue from PRC.
41GF Score
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