IbstockLSE:IBST +1.21%65 3-Year RORE % is 55.56 as of Dec. 2025. GuruFocus rates LSE:IBST with a GF Score™ of 65/100 and a GF Value™ of £1.32 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 391 Building Materials companies, Ibstock ranks better than 82.1% 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.
Ibstock's 3-Year RORE % for the quarter that ended in Dec. 2025 was 55.56%.
The industry rank for Ibstock's 3-Year RORE % or its related term are showing as below:
LSE:IBST's 3-Year RORE % is ranked better than 82.1% of 391
companies
in the Building Materials industry
Industry Median: 5.8
vs LSE:IBST: 55.56
Ibstock (LSE:IBST) 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.
Ibstock 3-Year RORE % Related Terms
Ibstock 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Ibstock'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:IBST vs CRH, VMC, MLM: 3-Year RORE % Comparison
For the Building Materials subindustry, Ibstock'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.
Ibstock 3-Year RORE % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Ibstock's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Ibstock'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 Dec. 2025 and 3-year before.
Ibstock (LSE:IBST) has a 3-Year RORE % of 55.56 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 Ibstock and its competitors. According to the industry distribution chart, Ibstock ranks #70 out of 391 companies in the Building Materials industry, placing it in the top 17.9%.
Is Ibstock's 3-Year RORE % too high?
Ibstock's current 3-Year RORE % is 55.56. The Building Materials industry median 3-Year RORE % is 5.80. Ibstock's value of 55.56 is 857.9% above this industry median. Based on the distribution chart, Ibstock ranks #70 out of 391 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Ibstock has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ibstock's 3-Year RORE % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Ibstock ranks #70 out of 391 companies for 3-Year RORE %. This places Ibstock in the top 18% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 5.80. Ibstock's value of 55.56 is 857.9% 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 Building Materials company?
The median 3-Year RORE % among Building Materials companies is 5.80, based on 391 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. Ibstock's current 3-Year RORE % of 55.56 is 857.9% 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 Ibstock and its competitors. For the Building Materials industry, the median 3-Year RORE % is 5.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ibstock's current 3-Year RORE % is 55.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ibstock stock overvalued right now?
Based on GuruFocus' analysis, Ibstock (LSE:IBST) is currently considered Modestly Undervalued. The stock's GF Value™ is £1.32, compared to a current price of £0.96 — trading 27.4% below its estimated fair value. The current 3-Year RORE % is 55.56 and 857.9% above the Building Materials industry median of 5.80. Ibstock's overall GF Score™ is 65/100 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 Ibstock (LSE:IBST), the current 3-Year RORE % is 55.56 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 Ibstock (LSE:IBST) Overvalued in 2026?
Based on GuruFocus' analysis, Ibstock stock appears to be undervalued.
The current stock price of £0.96 is trading 27.4% below its estimated GF Value™ of £1.32.
GuruFocus considers Ibstock to be Modestly Undervalued.
Key valuation signals for LSE:IBST:
3-Year RORE %: 55.56
GF Value™: £1.32 vs. price of £0.96 (27.4% below fair value)
Industry Position: 857.9% above the Building Materials median (#70 of 391)
No single metric tells the full story. See the LSE:IBST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ibstock PLC is a manufacturer of building products with a varied range of clay and concrete products and solutions to customers in the UK residential construction sector. Its product range includes clay bricks, brick components, concrete roof tiles, concrete stone masonry substitutes, concrete fencing, pre-stressed concrete products, and concrete rail products. The company's operating segment includes Clay and Concrete. It generates maximum revenue from the Clay segment.
65GF Score
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