Allocate Software (LSE:ALLA) 3-Year RORE % : 0.00% (As of May. 2014)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Allocate Software 3-Year RORE %?

Allocate Software LSE:ALLA 3-Year RORE % is 0.00 as of May. 2014. The stock has 1 warning sign investors should review.

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. Allocate Software's 3-Year RORE % for the quarter that ended in May. 2014 was 0.00%.

The industry rank for Allocate Software's 3-Year RORE % or its related term are showing as below:

LSE:ALLA's 3-Year RORE % is not ranked *
in the Software industry.
Industry Median: 3
* Ranked among companies with meaningful 3-Year RORE % only.

Allocate Software  (LSE:ALLA) 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.


Allocate Software 3-Year RORE % Related Terms


Allocate Software 3-Year RORE % Historical Data

* Premium members only.

The historical data trend for Allocate Software'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.

Allocate Software 3-Year RORE % Chart

Allocate Software Annual Data
Trend May05 May06 May07 May08 May09 May10 May11 May12 May13 May14
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

Allocate Software Semi-Annual Data
Nov04 May05 Nov05 May06 Nov06 May07 Nov07 May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14
3-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

LSE:ALLA vs SREV, ASUR: 3-Year RORE % Comparison

For the Software - Application subindustry, Allocate Software'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.


Allocate Software 3-Year RORE % vs Software Industry

For the Software industry and Technology sector, Allocate Software's 3-Year RORE % distribution charts can be found below:

* The bar in red indicates where Allocate Software's 3-Year RORE % falls into.



Allocate Software 3-Year RORE % Calculation

Allocate Software's 3-Year RORE % for the quarter that ended in May. 2014 is calculated as:

3-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 3-year -Cumulative Dividends per Share for 3-year )
=( 0.048--0.055 )/( -0.03-0 )
=0.103/-0.03
=-343.33 %

* 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 May. 2014 and 3-year before.

Frequently Asked Questions Learn more about 3-Year RORE % →
What does a 3-Year RORE % of 0.00 mean?
Allocate Software (LSE:ALLA) has a 3-Year RORE % of 0.00 as of May. 2014. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Allocate Software and its competitors.
Is Allocate Software's 3-Year RORE % too high?
Allocate Software's current 3-Year RORE % is 0.00.
How does Allocate Software's 3-Year RORE % compare to SREV and ASUR?
Allocate Software's 3-Year RORE % of 0.00 can be compared against companies in the Software industry. The industry median 3-Year RORE % is 3.00. 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 3.00, based on 2,547 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 Allocate Software and its competitors. For the Software industry, the median 3-Year RORE % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allocate Software's current 3-Year RORE % is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allocate Software stock overvalued right now?
Allocate Software (LSE:ALLA) has a current 3-Year RORE % of 0.00. The current 3-Year RORE % is 0.00. 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 Allocate Software (LSE:ALLA), the current 3-Year RORE % is 0.00 as of May. 2014. 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.

Allocate Software Business Description

Allocate Software PLC is engaged in the development, sale and support of workforce management solutions, and the provision of related IT services to major healthcare, defence, government and commercial customers. The business of the company is focused principally on the Healthcare market in addition to Defence. Its segments are Licence, Subscriptions, Support, and Services. Licence and Subscriptions segments represent the sale of non-cancellable software licence agreements and subscriptions associated with that software. Support and Services segments represent the provision of installation, consulting, training and product support. It operates in UK, Europe, USA and Australia.