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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.
Ermenegildo Zegna NV's 3-Year RORE % for the quarter that ended in Dec. 2025 was -3.92%.
The industry rank for Ermenegildo Zegna NV's 3-Year RORE % or its related term are showing as below:
MEX:ZGNN's 3-Year RORE % is ranked worse than 60.8% of 1005
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.72
vs MEX:ZGNN: -3.92
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.
Ermenegildo Zegna NV 3-Year RORE % Related Terms
Ermenegildo Zegna NV 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Ermenegildo Zegna NV'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:ZGNN vs PVH, COLM, KTB: 3-Year RORE % Comparison
For the Apparel Manufacturing subindustry, Ermenegildo Zegna NV'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.
Ermenegildo Zegna NV 3-Year RORE % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ermenegildo Zegna NV's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Ermenegildo Zegna NV'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.
Ermenegildo Zegna NV (MEX:ZGNN) has a 3-Year RORE % of -3.92 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 Ermenegildo Zegna NV and its competitors. According to the industry distribution chart, Ermenegildo Zegna NV ranks #611 out of 1005 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 60.8%.
Is Ermenegildo Zegna NV's 3-Year RORE % too high?
Ermenegildo Zegna NV's current 3-Year RORE % is -3.92. Based on the distribution chart, Ermenegildo Zegna NV ranks #611 out of 1005 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Ermenegildo Zegna NV has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Ermenegildo Zegna NV's 3-Year RORE % compare to PVH and COLM?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Ermenegildo Zegna NV ranks #611 out of 1005 companies for 3-Year RORE %. This places Ermenegildo Zegna NV in the lower half of its industry. The industry median 3-Year RORE % is 1.72. 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 Manufacturing - Apparel & Accessories company?
The median 3-Year RORE % among Manufacturing - Apparel & Accessories companies is 1.72, based on 1,005 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. 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 Ermenegildo Zegna NV and its competitors. For the Manufacturing - Apparel & Accessories industry, the median 3-Year RORE % is 1.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ermenegildo Zegna NV's current 3-Year RORE % is -3.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ermenegildo Zegna NV stock overvalued right now?
Ermenegildo Zegna NV (MEX:ZGNN) has a current 3-Year RORE % of -3.92. The stock's GF Value™ is MXN119.69, compared to a current price of MXN156.75 — trading 31% above its estimated fair value. The current 3-Year RORE % is -3.92. Ermenegildo Zegna NV's overall GF Score™ is 84/100 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 Ermenegildo Zegna NV (MEX:ZGNN), the current 3-Year RORE % is -3.92 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 Ermenegildo Zegna NV (MEX:ZGNN) Overvalued in 2026?
Based on GuruFocus' analysis, Ermenegildo Zegna NV stock appears to be overvalued.
The current stock price of MXN156.75 is trading 31% above its estimated GF Value™ of MXN119.69.
Key valuation signals for MEX:ZGNN:
3-Year RORE %: -3.92
GF Value™: MXN119.69 vs. price of MXN156.75 (31% above fair value)
No single metric tells the full story. See the MEX:ZGNN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ermenegildo Zegna NV designs creates, and distributes luxury menswear and accessories under the Zegna brand, as well as womenswear, menswear, and accessories under the Thom Browne brand. The company operates in three segments: the Zegna segment (comprising three product lines: Zegna Branded Products, Textile, and Third Party Brands); the Thom Browne segment, and the Tom Ford Fashion segment. The company generates the majority of revenue from the Zegna segment.
84GF Score
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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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