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.
Nestle Pakistan's 3-Year RORE % for the quarter that ended in Mar. 2026 was 10.48%.
The industry rank for Nestle Pakistan's 3-Year RORE % or its related term are showing as below:
KAR:NESTLE's 3-Year RORE % is ranked better than 55.36% of 1830
companies
in the Consumer Packaged Goods industry
Industry Median: 6.02
vs KAR:NESTLE: 10.48
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.
Nestle Pakistan 3-Year RORE % Related Terms
Nestle Pakistan 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Nestle Pakistan'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 Packaged Foods subindustry, Nestle Pakistan'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.
Nestle Pakistan 3-Year RORE % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Pakistan's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Nestle Pakistan'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.
Nestle Pakistan (KAR:NESTLE) has a 3-Year RORE % of 10.48 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 Nestle Pakistan and its competitors. According to the industry distribution chart, Nestle Pakistan ranks #817 out of 1830 companies in the Consumer Packaged Goods industry, placing it in the top 44.6%.
Is Nestle Pakistan's 3-Year RORE % too high?
Nestle Pakistan's current 3-Year RORE % is 10.48. The Consumer Packaged Goods industry median 3-Year RORE % is 6.02. Nestle Pakistan's value of 10.48 is 74.1% above this industry median. Based on the distribution chart, Nestle Pakistan ranks #817 out of 1830 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Nestle Pakistan has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nestle Pakistan's 3-Year RORE % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle Pakistan ranks #817 out of 1830 companies for 3-Year RORE %. This puts Nestle Pakistan in the upper half of its industry. The industry median 3-Year RORE % is 6.02. Nestle Pakistan's value of 10.48 is 74.1% 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 Consumer Packaged Goods company?
The median 3-Year RORE % among Consumer Packaged Goods companies is 6.02, based on 1,830 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. Nestle Pakistan's current 3-Year RORE % of 10.48 is 74.1% 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 Nestle Pakistan and its competitors. For the Consumer Packaged Goods industry, the median 3-Year RORE % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle Pakistan's current 3-Year RORE % is 10.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Nestle Pakistan (KAR:NESTLE) is currently considered Fairly Valued. The stock's GF Value™ is ₨7,875.55, compared to a current price of ₨7,688.85 — trading 2.4% below its estimated fair value. The current 3-Year RORE % is 10.48 and 74.1% above the Consumer Packaged Goods industry median of 6.02. Nestle Pakistan's overall GF Score™ is 79/100 with 1 warning sign 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 Nestle Pakistan (KAR:NESTLE), the current 3-Year RORE % is 10.48 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 Nestle Pakistan (KAR:NESTLE) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle Pakistan stock appears to be undervalued.
The current stock price of ₨7,688.85 is trading 2.4% below its estimated GF Value™ of ₨7,875.55.
GuruFocus considers Nestle Pakistan to be Fairly Valued.
Key valuation signals for KAR:NESTLE:
3-Year RORE %: 10.48
GF Value™: ₨7,875.55 vs. price of ₨7,688.85 (2.4% below fair value)
Industry Position: 74.1% above the Consumer Packaged Goods median (#817 of 1830)
No single metric tells the full story. See the KAR:NESTLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nestle Pakistan Ltd is principally engaged in manufacturing, processing, and selling dairy, nutrition, beverages, and food products, including imported products. The company's product line consists of dairy, coffee, water, juices, nectars, & fruit drinks, infant nutrition, breakfast cereals, and Nestle professionals. Its segments include Dairy and Nutrition Products, which include milk-based products; Powdered and Liquid Beverages include juices, drinking water, and powdered drinks; Other Products include confectionery, cereals, and other products. It derives the majority of its revenue from the Dairy and Nutrition Products segments.
79GF Score
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