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.
Mercantile Investment Trust (The)'s 3-Year RORE % for the quarter that ended in Jan. 2026 was 42.67%.
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.
Mercantile Investment Trust (The) 3-Year RORE % Related Terms
Mercantile Investment Trust (The) 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.
For the Asset Management subindustry, Mercantile Investment Trust (The)'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.
Mercantile Investment Trust (The) 3-Year RORE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Mercantile Investment Trust (The)'s 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Mercantile Investment Trust (The)'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 Jan. 2026 and 3-year before.
Mercantile Investment Trust (The) (LSE:MRC) has a 3-Year RORE % of 42.67 as of Jan. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Mercantile Investment Trust (The) and its competitors. According to the industry distribution chart, Mercantile Investment Trust (The) ranks #534 out of 1533 companies in the Asset Management industry, placing it in the top 34.8%.
Is Mercantile Investment Trust (The)'s 3-Year RORE % too high?
Mercantile Investment Trust (The)'s current 3-Year RORE % is 42.67. The Asset Management industry median 3-Year RORE % is 12.50. Mercantile Investment Trust (The)'s value of 42.67 is 241.4% above this industry median. Based on the distribution chart, Mercantile Investment Trust (The) ranks #534 out of 1533 companies in the Asset Management industry, which is above the industry midpoint. Overall, Mercantile Investment Trust (The) has a GF Score™ of 50/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mercantile Investment Trust (The)'s 3-Year RORE % compare to BLK and BX?
According to the Asset Management industry distribution chart, Mercantile Investment Trust (The) ranks #534 out of 1533 companies for 3-Year RORE %. This puts Mercantile Investment Trust (The) in the upper half of its industry. The industry median 3-Year RORE % is 12.50. Mercantile Investment Trust (The)'s value of 42.67 is 241.4% 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 Asset Management company?
The median 3-Year RORE % among Asset Management companies is 12.50, based on 1,533 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. Mercantile Investment Trust (The)'s current 3-Year RORE % of 42.67 is 241.4% 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 Mercantile Investment Trust (The) and its competitors. For the Asset Management industry, the median 3-Year RORE % is 12.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mercantile Investment Trust (The)'s current 3-Year RORE % is 42.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercantile Investment Trust (The) stock overvalued right now?
Based on GuruFocus' analysis, Mercantile Investment Trust (The) (LSE:MRC) is currently considered Significantly Undervalued. The stock's GF Value™ is £7.21, compared to a current price of £2.72 — trading 62.3% below its estimated fair value. The current 3-Year RORE % is 42.67 and 241.4% above the Asset Management industry median of 12.50. Mercantile Investment Trust (The)'s overall GF Score™ is 50/100 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 Mercantile Investment Trust (The) (LSE:MRC), the current 3-Year RORE % is 42.67 as of Jan. 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 Mercantile Investment Trust (The) (LSE:MRC) Overvalued in 2026?
Based on GuruFocus' analysis, Mercantile Investment Trust (The) stock appears to be undervalued.
The current stock price of £2.72 is trading 62.3% below its estimated GF Value™ of £7.21.
GuruFocus considers Mercantile Investment Trust (The) to be Significantly Undervalued.
Key valuation signals for LSE:MRC:
3-Year RORE %: 42.67
GF Value™: £7.21 vs. price of £2.72 (62.3% below fair value)
Industry Position: 241.4% above the Asset Management median (#534 of 1533)
No single metric tells the full story. See the LSE:MRC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mercantile Investment Trust (The) Business Description
Mercantile Investment Trust (The) PLC is an investment trust managed by JP Morgan Funds Limited. It aims to achieve capital growth through investing in a diversified portfolio of UK medium and smaller companies. The trust's investment portfolio consists of securities of companies from various sectors such as Consumer Services, Financials, Industrial, Technology, Health Care, Basic Materials, Telecommunications, Utilities, Consumer Goods, Real Estate, and Oil & Gas.
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