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.
Honkarakenne Oyj's 3-Year RORE % for the quarter that ended in Dec. 2025 was 40.49%.
The industry rank for Honkarakenne Oyj's 3-Year RORE % or its related term are showing as below:
LTS:0EPR's 3-Year RORE % is ranked better than 84.62% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 2.02
vs LTS:0EPR: 40.49
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.
Honkarakenne Oyj 3-Year RORE % Related Terms
Honkarakenne Oyj 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Honkarakenne Oyj'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.
LTS:0EPR vs DHI, PHM, LEN: 3-Year RORE % Comparison
For the Residential Construction subindustry, Honkarakenne Oyj'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.
Honkarakenne Oyj 3-Year RORE % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Honkarakenne Oyj's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Honkarakenne Oyj'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.
Honkarakenne Oyj (LTS:0EPR) has a 3-Year RORE % of 40.49 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 Honkarakenne Oyj and its competitors. According to the industry distribution chart, Honkarakenne Oyj ranks #14 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 15.4%.
Is Honkarakenne Oyj's 3-Year RORE % too high?
Honkarakenne Oyj's current 3-Year RORE % is 40.49. The Homebuilding & Construction industry median 3-Year RORE % is 2.02. Honkarakenne Oyj's value of 40.49 is 1904.5% above this industry median. Based on the distribution chart, Honkarakenne Oyj ranks #14 out of 91 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Honkarakenne Oyj has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Honkarakenne Oyj's 3-Year RORE % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Honkarakenne Oyj ranks #14 out of 91 companies for 3-Year RORE %. This places Honkarakenne Oyj in the top 15% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 2.02. Honkarakenne Oyj's value of 40.49 is 1904.5% 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 Homebuilding & Construction company?
The median 3-Year RORE % among Homebuilding & Construction companies is 2.02, based on 91 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. Honkarakenne Oyj's current 3-Year RORE % of 40.49 is 1904.5% 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 Honkarakenne Oyj and its competitors. For the Homebuilding & Construction industry, the median 3-Year RORE % is 2.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honkarakenne Oyj's current 3-Year RORE % is 40.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honkarakenne Oyj stock overvalued right now?
Honkarakenne Oyj (LTS:0EPR) has a current 3-Year RORE % of 40.49. The stock's GF Value™ is €2.54, compared to a current price of €2.44 — trading 3.9% below its estimated fair value. The current 3-Year RORE % is 40.49 and 1904.5% above the Homebuilding & Construction industry median of 2.02. Honkarakenne Oyj's overall GF Score™ is 68/100 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 Honkarakenne Oyj (LTS:0EPR), the current 3-Year RORE % is 40.49 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 Honkarakenne Oyj (LTS:0EPR) Overvalued in 2026?
Based on GuruFocus' analysis, Honkarakenne Oyj stock appears to be undervalued.
The current stock price of €2.44 is trading 3.9% below its estimated GF Value™ of €2.54.
Key valuation signals for LTS:0EPR:
3-Year RORE %: 40.49
GF Value™: €2.54 vs. price of €2.44 (3.9% below fair value)
Industry Position: 1904.5% above the Homebuilding & Construction median (#14 of 91)
No single metric tells the full story. See the LTS:0EPR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honkarakenne Oyj is a Finnish company engaged in the manufacture and sales of log houses in Finland and abroad. It supplies contemporary log homes, traditional log homes, holiday lodges and log cabins for organic, healthy and ecological living. The company also offers services including Honka design service, building service, and extension services. Its business is divided into two geographical operating segments including Finland and Export. The company derives a majority of its revenue from Finland. The Group sells and manufactures log and solid-wood house packages as well as related design and construction services. The sales income related to company's primary business activities is presented as revenue.
68GF Score
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