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.
Associated British Engineering's 3-Year RORE % for the quarter that ended in Mar. 2026 was 15.85%.
LSE:ASBE's 3-Year RORE % is ranked better than 50.99% of 761
companies
in the Capital Markets industry
Industry Median: 14.85
vs LSE:ASBE: 15.85
Associated British Engineering (LSE:ASBE) 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.
Associated British Engineering 3-Year RORE % Related Terms
Associated British Engineering 3-Year RORE % Historical Data
* 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.
Associated British Engineering 3-Year RORE % Chart
LSE:ASBE vs MS, GS, SCHW: 3-Year RORE % Comparison
For the Capital Markets subindustry, Associated British Engineering'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.
Associated British Engineering 3-Year RORE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Associated British Engineering's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Associated British Engineering'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.
Associated British Engineering (LSE:ASBE) has a 3-Year RORE % of 15.85 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 Associated British Engineering and its competitors. According to the industry distribution chart, Associated British Engineering ranks #373 out of 761 companies in the Capital Markets industry, placing it in the top 49%.
Is Associated British Engineering's 3-Year RORE % too high?
Associated British Engineering's current 3-Year RORE % is 15.85. The Capital Markets industry median 3-Year RORE % is 14.85. Associated British Engineering's value of 15.85 is 6.7% above this industry median. Based on the distribution chart, Associated British Engineering ranks #373 out of 761 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Associated British Engineering has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Associated British Engineering's 3-Year RORE % compare to MS and GS?
According to the Capital Markets industry distribution chart, Associated British Engineering ranks #373 out of 761 companies for 3-Year RORE %. This puts Associated British Engineering in the upper half of its industry. The industry median 3-Year RORE % is 14.85. Associated British Engineering's value of 15.85 is 6.7% 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 Capital Markets company?
The median 3-Year RORE % among Capital Markets companies is 14.85, based on 761 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. Associated British Engineering's current 3-Year RORE % of 15.85 is 6.7% 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 Associated British Engineering and its competitors. For the Capital Markets industry, the median 3-Year RORE % is 14.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Associated British Engineering's current 3-Year RORE % is 15.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Associated British Engineering stock overvalued right now?
Associated British Engineering (LSE:ASBE) has a current 3-Year RORE % of 15.85. The current 3-Year RORE % is 15.85 and 6.7% above the Capital Markets industry median of 14.85. Associated British Engineering's overall GF Score™ is 34/100 with 2 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 Associated British Engineering (LSE:ASBE), the current 3-Year RORE % is 15.85 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.
Associated British Engineering Business Description
Associated British Engineering Plc is a United Kingdom-based holding company. The Company's segments include Associated British Engineering Plc and Akoris Trading Limited. Akoris Trading Limited, its subsidiary, is a commodity and natural resource trading, finance, and investment company. Its operations are located in the United Kingdom.
34GF Score
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