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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.
Chemring Group's 3-Year RORE % for the quarter that ended in Apr. 2026 was 175.00%.
The industry rank for Chemring Group's 3-Year RORE % or its related term are showing as below:
LSE:CHG's 3-Year RORE % is ranked better than 95.28% of 318
companies
in the Aerospace & Defense industry
Industry Median: 9.565
vs LSE:CHG: 175.00
Chemring Group (LSE:CHG) 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.
Chemring Group 3-Year RORE % Related Terms
Chemring Group 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Chemring Group'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.
LSE:CHG vs SPCX, GE, RTX: 3-Year RORE % Comparison
For the Aerospace & Defense subindustry, Chemring Group'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.
Chemring Group 3-Year RORE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Chemring Group's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Chemring Group'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 Apr. 2026 and 3-year before.
Chemring Group (LSE:CHG) has a 3-Year RORE % of 175.00 as of Apr. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Chemring Group and its competitors. According to the industry distribution chart, Chemring Group ranks #15 out of 318 companies in the Aerospace & Defense industry, placing it in the top 4.7%.
Is Chemring Group's 3-Year RORE % too high?
Chemring Group's current 3-Year RORE % is 175.00. The Aerospace & Defense industry median 3-Year RORE % is 9.57. Chemring Group's value of 175.00 is 1729.6% above this industry median. Based on the distribution chart, Chemring Group ranks #15 out of 318 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Chemring Group has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemring Group's 3-Year RORE % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Chemring Group ranks #15 out of 318 companies for 3-Year RORE %. This places Chemring Group in the top 5% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 9.57. Chemring Group's value of 175.00 is 1729.6% 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 Aerospace & Defense company?
The median 3-Year RORE % among Aerospace & Defense companies is 9.57, based on 318 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. Chemring Group's current 3-Year RORE % of 175.00 is 1729.6% 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 Chemring Group and its competitors. For the Aerospace & Defense industry, the median 3-Year RORE % is 9.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemring Group's current 3-Year RORE % is 175.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemring Group stock overvalued right now?
Based on GuruFocus' analysis, Chemring Group (LSE:CHG) is currently considered Significantly Overvalued. The stock's GF Value™ is £4.35, compared to a current price of £5.97 — trading 37.1% above its estimated fair value. The current 3-Year RORE % is 175.00 and 1729.6% above the Aerospace & Defense industry median of 9.57. Chemring Group's overall GF Score™ is 83/100 with 6 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 Chemring Group (LSE:CHG), the current 3-Year RORE % is 175.00 as of Apr. 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 Chemring Group (LSE:CHG) Overvalued in 2026?
Based on GuruFocus' analysis, Chemring Group stock appears to be overvalued.
The current stock price of £5.97 is trading 37.1% above its estimated GF Value™ of £4.35.
GuruFocus considers Chemring Group to be Significantly Overvalued.
Key valuation signals for LSE:CHG:
3-Year RORE %: 175.00
GF Value™: £4.35 vs. price of £5.97 (37.1% above fair value)
Industry Position: 1729.6% above the Aerospace & Defense median (#15 of 318)
No single metric tells the full story. See the LSE:CHG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemring Group PLC is a defense technology company. The company's operating segment include: i) Countermeasures and Energetics segment: It is engaged in the development and manufacturing of expendable countermeasures for air and sea platforms, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile components, propellants, separation sub-systems, actuators, and energetic materials, ii) Sensors and Information: it is engaged in the development and manufacturing of electronic countermeasures, chemical and biological threat detection equipment, and explosive hazard detection (EHD) equipment. It generated the majority of the revenue from the Countermeasures and Energetics segment. Geographically, the maximum revenue is generated from the USA.
83GF Score
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