Kumagai Gumi CoKMGGF 78 3-Year RORE % is 60.37 as of Mar. 2026. GuruFocus rates KMGGF with a GF Score™ of 78/100 and a GF Value™ of $6.38 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,636 Construction companies, Kumagai Gumi Co ranks better than 83.99% on this metric.
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.
Kumagai Gumi Co's 3-Year RORE % for the quarter that ended in Mar. 2026 was 60.37%.
The industry rank for Kumagai Gumi Co's 3-Year RORE % or its related term are showing as below:
KMGGF's 3-Year RORE % is ranked better than 83.99% of 1636
companies
in the Construction industry
Industry Median: 6.79
vs KMGGF: 60.37
Kumagai Gumi Co (OTCPK:KMGGF) 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.
Kumagai Gumi Co 3-Year RORE % Related Terms
Kumagai Gumi Co 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Kumagai Gumi Co'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 Engineering & Construction subindustry, Kumagai Gumi Co'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.
Kumagai Gumi Co 3-Year RORE % vs Construction Industry
For the Construction industry and Industrials sector, Kumagai Gumi Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Kumagai Gumi Co'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.
Kumagai Gumi Co (KMGGF) has a 3-Year RORE % of 60.37 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 Kumagai Gumi Co and its competitors. According to the industry distribution chart, Kumagai Gumi Co ranks #262 out of 1636 companies in the Construction industry, placing it in the top 16%.
Is Kumagai Gumi Co's 3-Year RORE % too high?
Kumagai Gumi Co's current 3-Year RORE % is 60.37. The Construction industry median 3-Year RORE % is 6.79. Kumagai Gumi Co's value of 60.37 is 789.1% above this industry median. Based on the distribution chart, Kumagai Gumi Co ranks #262 out of 1636 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Kumagai Gumi Co has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kumagai Gumi Co's 3-Year RORE % compare to PWR and FIX?
According to the Construction industry distribution chart, Kumagai Gumi Co ranks #262 out of 1636 companies for 3-Year RORE %. This places Kumagai Gumi Co in the top 16% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 6.79. Kumagai Gumi Co's value of 60.37 is 789.1% 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 Construction company?
The median 3-Year RORE % among Construction companies is 6.79, based on 1,636 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. Kumagai Gumi Co's current 3-Year RORE % of 60.37 is 789.1% 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 Kumagai Gumi Co and its competitors. For the Construction industry, the median 3-Year RORE % is 6.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kumagai Gumi Co's current 3-Year RORE % is 60.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kumagai Gumi Co stock overvalued right now?
Based on GuruFocus' analysis, Kumagai Gumi Co (KMGGF) is currently considered Significantly Overvalued. The stock's GF Value™ is $6.38, compared to a current price of $8.70 — trading 36.4% above its estimated fair value. The current 3-Year RORE % is 60.37 and 789.1% above the Construction industry median of 6.79. Kumagai Gumi Co's overall GF Score™ is 78/100 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 Kumagai Gumi Co (KMGGF), the current 3-Year RORE % is 60.37 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 Kumagai Gumi Co (KMGGF) Overvalued in 2026?
Based on GuruFocus' analysis, Kumagai Gumi Co stock appears to be overvalued.
The current stock price of $8.70 is trading 36.4% above its estimated GF Value™ of $6.38.
GuruFocus considers Kumagai Gumi Co to be Significantly Overvalued.
Key valuation signals for KMGGF:
3-Year RORE %: 60.37
GF Value™: $6.38 vs. price of $8.70 (36.4% above fair value)
Industry Position: 789.1% above the Construction median (#262 of 1636)
No single metric tells the full story. See the KMGGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kumagai Gumi Co Ltd is a Japanese company that provides services in construction and civil engineering. The company analyzes, designs, and supervises complex construction projects. It also offers engineering and technical services throughout the construction process. These projects include roads, railways, airports, water systems, and other public facilities. In addition, the company is engaged in manufacturing and selling construction materials and machinery. Construction activities account for the majority of revenue. The company generates additional revenue from developing residential and commercial complexes and either operating the building or acting as a broker and selling the real estate.
78GF Score
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