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.
TXT e-solutions SpA's 3-Year RORE % for the quarter that ended in Mar. 2026 was 11.53%.
The industry rank for TXT e-solutions SpA's 3-Year RORE % or its related term are showing as below:
MIL:TXT's 3-Year RORE % is ranked better than 59.18% of 2538
companies
in the Software industry
Industry Median: 2.99
vs MIL:TXT: 11.53
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.
TXT e-solutions SpA 3-Year RORE % Related Terms
TXT e-solutions SpA 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for TXT e-solutions SpA'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.
MIL:TXT vs UBER, SHOP, CRM: 3-Year RORE % Comparison
For the Software - Application subindustry, TXT e-solutions SpA'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.
TXT e-solutions SpA 3-Year RORE % vs Software Industry
For the Software industry and Technology sector, TXT e-solutions SpA's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where TXT e-solutions SpA'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.
TXT e-solutions SpA (MIL:TXT) has a 3-Year RORE % of 11.53 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 TXT e-solutions SpA and its competitors. According to the industry distribution chart, TXT e-solutions SpA ranks #1036 out of 2538 companies in the Software industry, placing it in the top 40.8%.
Is TXT e-solutions SpA's 3-Year RORE % too high?
TXT e-solutions SpA's current 3-Year RORE % is 11.53. The Software industry median 3-Year RORE % is 2.99. TXT e-solutions SpA's value of 11.53 is 285.6% above this industry median. Based on the distribution chart, TXT e-solutions SpA ranks #1036 out of 2538 companies in the Software industry, which is above the industry midpoint. Overall, TXT e-solutions SpA has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does TXT e-solutions SpA's 3-Year RORE % compare to UBER and SHOP?
According to the Software industry distribution chart, TXT e-solutions SpA ranks #1036 out of 2538 companies for 3-Year RORE %. This puts TXT e-solutions SpA in the upper half of its industry. The industry median 3-Year RORE % is 2.99. TXT e-solutions SpA's value of 11.53 is 285.6% 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 Software company?
The median 3-Year RORE % among Software companies is 2.99, based on 2,538 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. TXT e-solutions SpA's current 3-Year RORE % of 11.53 is 285.6% 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 TXT e-solutions SpA and its competitors. For the Software industry, the median 3-Year RORE % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TXT e-solutions SpA's current 3-Year RORE % is 11.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TXT e-solutions SpA stock overvalued right now?
Based on GuruFocus' analysis, TXT e-solutions SpA (MIL:TXT) is currently considered Fairly Valued. The stock's GF Value™ is €39.41, compared to a current price of €43.00 — trading 9.1% above its estimated fair value. The current 3-Year RORE % is 11.53 and 285.6% above the Software industry median of 2.99. TXT e-solutions SpA's overall GF Score™ is 93/100 with 7 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 TXT e-solutions SpA (MIL:TXT), the current 3-Year RORE % is 11.53 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 TXT e-solutions SpA (MIL:TXT) Overvalued in 2026?
Based on GuruFocus' analysis, TXT e-solutions SpA stock appears to be overvalued.
The current stock price of €43.00 is trading 9.1% above its estimated GF Value™ of €39.41.
GuruFocus considers TXT e-solutions SpA to be Fairly Valued.
Key valuation signals for MIL:TXT:
3-Year RORE %: 11.53
GF Value™: €39.41 vs. price of €43.00 (9.1% above fair value)
Industry Position: 285.6% above the Software median (#1036 of 2538)
No single metric tells the full story. See the MIL:TXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TXT e-solutions SpA is an Italy-based company. The company provides three operating segments: Smart Solutions, Software Engineering, and Digital Advisory. The smart solution segment includes the activities of TXT Risk Solutions, Assiopay, and Working Capital Solution. D.M. Management and Consulting, etc. Software Engineering includes e-tech Srl, Ennova Group, TXT e-swiss, and Fascode S.P.A. Digital Advisory includes companies such as HSPI, PGMD Consulting, Tlogos, etc. The majority of revenue is from Software Engineering. Geographically, it has a presence in Italy, Germany, the United Kingdom, France, Switzerland, and the USA.
93GF Score
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