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.
Sensient Technologies's 3-Year RORE % for the quarter that ended in Mar. 2026 was 37.40%.
The industry rank for Sensient Technologies's 3-Year RORE % or its related term are showing as below:
MEX:SXT's 3-Year RORE % is ranked better than 73.39% of 1518
companies
in the Chemicals industry
Industry Median: 6.23
vs MEX:SXT: 37.40
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.
Sensient Technologies 3-Year RORE % Related Terms
Sensient Technologies 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Sensient Technologies'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:SXT vs CBT, BCPC, PRM: 3-Year RORE % Comparison
For the Specialty Chemicals subindustry, Sensient Technologies'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.
Sensient Technologies 3-Year RORE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sensient Technologies's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Sensient Technologies'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.
Sensient Technologies (MEX:SXT) has a 3-Year RORE % of 37.40 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 Sensient Technologies and its competitors. According to the industry distribution chart, Sensient Technologies ranks #404 out of 1518 companies in the Chemicals industry, placing it in the top 26.6%.
Is Sensient Technologies' 3-Year RORE % too high?
Sensient Technologies' current 3-Year RORE % is 37.40. The Chemicals industry median 3-Year RORE % is 6.23. Sensient Technologies' value of 37.40 is 500.3% above this industry median. Based on the distribution chart, Sensient Technologies ranks #404 out of 1518 companies in the Chemicals industry, which is above the industry midpoint. Overall, Sensient Technologies has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Sensient Technologies' 3-Year RORE % compare to CBT and BCPC?
According to the Chemicals industry distribution chart, Sensient Technologies ranks #404 out of 1518 companies for 3-Year RORE %. This puts Sensient Technologies in the upper half of its industry. The industry median 3-Year RORE % is 6.23. Sensient Technologies' value of 37.40 is 500.3% 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 Chemicals company?
The median 3-Year RORE % among Chemicals companies is 6.23, based on 1,518 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. Sensient Technologies's current 3-Year RORE % of 37.40 is 500.3% 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 Sensient Technologies and its competitors. For the Chemicals industry, the median 3-Year RORE % is 6.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sensient Technologies's current 3-Year RORE % is 37.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sensient Technologies stock overvalued right now?
Sensient Technologies (MEX:SXT) has a current 3-Year RORE % of 37.40. The stock's GF Value™ is MXN965.35, compared to a current price of MXN1,400.00 — trading 45% above its estimated fair value. The current 3-Year RORE % is 37.40 and 500.3% above the Chemicals industry median of 6.23. Sensient Technologies' overall GF Score™ is 81/100 with 8 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 Sensient Technologies (MEX:SXT), the current 3-Year RORE % is 37.40 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 Sensient Technologies (MEX:SXT) Overvalued in 2026?
Based on GuruFocus' analysis, Sensient Technologies stock appears to be overvalued.
The current stock price of MXN1,400.00 is trading 45% above its estimated GF Value™ of MXN965.35.
Key valuation signals for MEX:SXT:
3-Year RORE %: 37.40
GF Value™: MXN965.35 vs. price of MXN1,400.00 (45% above fair value)
Industry Position: 500.3% above the Chemicals median (#404 of 1518)
No single metric tells the full story. See the MEX:SXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sensient Technologies Corp manufactures and markets natural and synthetic colors, flavors, and other specialty ingredients. Sensient's offerings are predominantly applied to consumer-facing products, including food and beverage, cosmetics and pharmaceuticals, nutraceuticals, and personal care industries. Its principal products are flavors, flavor enhancers, ingredients, extracts, and bionutrients, essential oils, dehydrated vegetables and other food ingredients, natural and synthetic food and beverage colors, and others. The company's reportable segments are: Flavors & Extracts, which derive key revenue, Color, Asia Pacific, and Corporate and Other. Geographically, the company generates maximum revenue from North America, followed by Europe, Asia-Pacific, and other regions.
81GF Score
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