Cathay Financial Holding Co (LSE:CFHS) 3-Year RORE % : 34.70% (As of Dec. 2025)


LSE:CFHS Cathay Financial Holding Co Ltd LSE:CFHS
55 GF Score
Price $19.20
GF Value $15.56
! 4 Warning Signs
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What is Cathay Financial Holding Co 3-Year RORE %?

Cathay Financial Holding Co LSE:CFHS 55 3-Year RORE % is 34.70 as of Dec. 2025. GuruFocus rates LSE:CFHS with a GF Score™ of 55/100 and a GF Value™ of $15.56. The stock has 4 warning signs investors should review. Among 473 Insurance companies, Cathay Financial Holding Co ranks better than 76.32% 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. Cathay Financial Holding Co's 3-Year RORE % for the quarter that ended in Dec. 2025 was 34.70%.

The industry rank for Cathay Financial Holding Co's 3-Year RORE % or its related term are showing as below:

LSE:CFHS's 3-Year RORE % is ranked better than
76.32% of 473 companies
in the Insurance industry
Industry Median: 11.7 vs LSE:CFHS: 34.70

Cathay Financial Holding Co  (LSE:CFHS) 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.


Cathay Financial Holding Co 3-Year RORE % Related Terms


Cathay Financial Holding Co 3-Year RORE % Historical Data

* Premium members only.

The historical data trend for Cathay Financial Holding 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.

Cathay Financial Holding Co 3-Year RORE % Chart

Cathay Financial Holding Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 42.63 -24.80 -80.40 62.72 34.70

Cathay Financial Holding Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
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 62.72 102.19 72.79 37.29 34.70

LSE:CFHS vs AFL, MET, PRU: 3-Year RORE % Comparison

For the Insurance - Life subindustry, Cathay Financial Holding 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.


Cathay Financial Holding Co 3-Year RORE % vs Insurance Industry

For the Insurance industry and Financial Services sector, Cathay Financial Holding Co's 3-Year RORE % distribution charts can be found below:

* The bar in red indicates where Cathay Financial Holding Co's 3-Year RORE % falls into.


LSE:CFHS
55GF Score
Cathay Financial Holding Co Ltd LSE:CFHS
3-Year RORE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Cathay Financial Holding Co 3-Year RORE % Calculation

Cathay Financial Holding Co's 3-Year RORE % for the quarter that ended in Dec. 2025 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 )
=( 2.25-1.032 )/( 5.557-2.047 )
=1.218/3.51
=34.70 %

* 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.

Frequently Asked Questions Learn more about 3-Year RORE % →
What does a 3-Year RORE % of 34.70 mean?
Cathay Financial Holding Co (LSE:CFHS) has a 3-Year RORE % of 34.70 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 Cathay Financial Holding Co and its competitors. According to the industry distribution chart, Cathay Financial Holding Co ranks #112 out of 473 companies in the Insurance industry, placing it in the top 23.7%.
Is Cathay Financial Holding Co's 3-Year RORE % too high?
Cathay Financial Holding Co's current 3-Year RORE % is 34.70. The Insurance industry median 3-Year RORE % is 11.70. Cathay Financial Holding Co's value of 34.70 is 196.6% above this industry median. Based on the distribution chart, Cathay Financial Holding Co ranks #112 out of 473 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Cathay Financial Holding Co has a GF Score™ of 55/100, reflecting its overall financial health beyond just this single metric.
How does Cathay Financial Holding Co's 3-Year RORE % compare to AFL and MET?
According to the Insurance industry distribution chart, Cathay Financial Holding Co ranks #112 out of 473 companies for 3-Year RORE %. This places Cathay Financial Holding Co in the top 24% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 11.70. Cathay Financial Holding Co's value of 34.70 is 196.6% 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 an Insurance company?
The median 3-Year RORE % among Insurance companies is 11.70, based on 473 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. Cathay Financial Holding Co's current 3-Year RORE % of 34.70 is 196.6% 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 Cathay Financial Holding Co and its competitors. For the Insurance industry, the median 3-Year RORE % is 11.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Financial Holding Co's current 3-Year RORE % is 34.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Financial Holding Co stock overvalued right now?
Cathay Financial Holding Co (LSE:CFHS) has a current 3-Year RORE % of 34.70. The stock's GF Value™ is $15.56, compared to a current price of $19.20 — trading 23.4% above its estimated fair value. The current 3-Year RORE % is 34.70 and 196.6% above the Insurance industry median of 11.70. Cathay Financial Holding Co's overall GF Score™ is 55/100 with 4 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 Cathay Financial Holding Co (LSE:CFHS), the current 3-Year RORE % is 34.70 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 Cathay Financial Holding Co (LSE:CFHS) Overvalued in 2026?

Based on GuruFocus' analysis, Cathay Financial Holding Co stock appears to be overvalued. The current stock price of $19.20 is trading 23.4% above its estimated GF Value™ of $15.56.

Key valuation signals for LSE:CFHS:

  • 3-Year RORE %: 34.70
  • GF Value™: $15.56 vs. price of $19.20 (23.4% above fair value)
  • GF Score™: 55/100 with 4 warning signs
  • Industry Position: 196.6% above the Insurance median (#112 of 473)

No single metric tells the full story. See the LSE:CFHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Cathay Financial Holding Co Business Description

Address No. 296, Jen Ai Road, Section 4, Taipei, TWN, 10633
Cathay Financial Holding Co Ltd is a financial holding company. It has five operating segments Banking segment is engaged in permitted businesses of commercial banks; Life insurance segments is engaged in traditional insurance, investment-linked insurance and interest-sensitive sales of annuity insurance and providing financial planning services and policy loan services; Property insurance segment is engaged in fire insurance, marine insurance, land and air insurance, liability insurance, financial guarantee insurance, reinsurance and other insurance; Securities segment is engaged in brokerage, dealership, and underwriting business; and Other operating segment of which majority of revenue is from Life insurance. Geographically revenue comes from Taiwan.
55GF Score

Get the complete analysis for LSE:CFHS

3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$19.20
Price
$15.56
GF Value