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.
Robinhood Markets's 3-Year RORE % for the quarter that ended in Mar. 2026 was 46.93%.
The industry rank for Robinhood Markets's 3-Year RORE % or its related term are showing as below:
MEX:HOOD's 3-Year RORE % is ranked better than 75% of 764
companies
in the Capital Markets industry
Industry Median: 15.015
vs MEX:HOOD: 46.93
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.
Robinhood Markets 3-Year RORE % Related Terms
Robinhood Markets 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Robinhood Markets'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.
MEX:HOOD vs IBKR, LPLA, SCHW: 3-Year RORE % Comparison
For the Capital Markets subindustry, Robinhood Markets'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.
Robinhood Markets 3-Year RORE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Robinhood Markets's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Robinhood Markets'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 Mar. 2026 and 3-year before.
Robinhood Markets (MEX:HOOD) has a 3-Year RORE % of 46.93 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Robinhood Markets and its competitors. According to the industry distribution chart, Robinhood Markets ranks #191 out of 764 companies in the Capital Markets industry, placing it in the top 25%.
Is Robinhood Markets' 3-Year RORE % too high?
Robinhood Markets' current 3-Year RORE % is 46.93. The Capital Markets industry median 3-Year RORE % is 15.02. Robinhood Markets' value of 46.93 is 212.6% above this industry median. Based on the distribution chart, Robinhood Markets ranks #191 out of 764 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Robinhood Markets has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Robinhood Markets' 3-Year RORE % compare to IBKR and LPLA?
According to the Capital Markets industry distribution chart, Robinhood Markets ranks #191 out of 764 companies for 3-Year RORE %. This places Robinhood Markets in the top 25% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 15.02. Robinhood Markets' value of 46.93 is 212.6% 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 a Capital Markets company?
The median 3-Year RORE % among Capital Markets companies is 15.02, based on 764 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. Robinhood Markets's current 3-Year RORE % of 46.93 is 212.6% 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 Robinhood Markets and its competitors. For the Capital Markets industry, the median 3-Year RORE % is 15.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Robinhood Markets's current 3-Year RORE % is 46.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Robinhood Markets stock overvalued right now?
Based on GuruFocus' analysis, Robinhood Markets (MEX:HOOD) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN1,082.68, compared to a current price of MXN1,955.00 — trading 80.6% above its estimated fair value. The current 3-Year RORE % is 46.93 and 212.6% above the Capital Markets industry median of 15.02. Robinhood Markets' overall GF Score™ is 57/100 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 Robinhood Markets (MEX:HOOD), the current 3-Year RORE % is 46.93 as of Mar. 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 Robinhood Markets (MEX:HOOD) Overvalued in 2026?
Based on GuruFocus' analysis, Robinhood Markets stock appears to be overvalued.
The current stock price of MXN1,955.00 is trading 80.6% above its estimated GF Value™ of MXN1,082.68.
GuruFocus considers Robinhood Markets to be Significantly Overvalued.
Key valuation signals for MEX:HOOD:
3-Year RORE %: 46.93
GF Value™: MXN1,082.68 vs. price of MXN1,955.00 (80.6% above fair value)
Industry Position: 212.6% above the Capital Markets median (#191 of 764)
No single metric tells the full story. See the MEX:HOOD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Robinhood is a diversified financial services provider best known for its retail brokerage platform, which historically caters to a young, risk-seeking clientele that trades heavily on margin and in higher-risk asset classes like options, futures, cryptocurrencies, and more recently, in prediction markets. As those customers' financial needs have begun to mature, Robinhood has rolled out a suite of more conventional products, from retirement accounts to high-yield cash sweep accounts to nascent advisory services (Robinhood Strategies). With $322 billion in customer assets and 27 million active accounts at year-end 2025, the firm has emerged as a significant player in the large, quickly growing US brokerage market.
57GF Score
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