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.
Firstrand's 3-Year RORE % for the quarter that ended in Dec. 2025 was 12.03%.
The industry rank for Firstrand's 3-Year RORE % or its related term are showing as below:
NAM:FST's 3-Year RORE % is ranked better than 54.39% of 1469
companies
in the Banks industry
Industry Median: 9.89
vs NAM:FST: 12.03
Firstrand (NAM:FST) 3-Year RORE % Explanation
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.
Firstrand 3-Year RORE % Related Terms
Firstrand 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Firstrand'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.
NAM:FST vs JPM, BAC, WFC: 3-Year RORE % Comparison
For the Banks - Diversified subindustry, Firstrand'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.
Firstrand 3-Year RORE % vs Banks Industry
For the Banks industry and Financial Services sector, Firstrand's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Firstrand'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.
Firstrand (NAM:FST) has a 3-Year RORE % of 12.03 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 Firstrand and its competitors. According to the industry distribution chart, Firstrand ranks #670 out of 1469 companies in the Banks industry, placing it in the top 45.6%.
Is Firstrand's 3-Year RORE % too high?
Firstrand's current 3-Year RORE % is 12.03. The Banks industry median 3-Year RORE % is 9.89. Firstrand's value of 12.03 is 21.6% above this industry median. Based on the distribution chart, Firstrand ranks #670 out of 1469 companies in the Banks industry, which is above the industry midpoint. Overall, Firstrand has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Firstrand's 3-Year RORE % compare to JPM and BAC?
According to the Banks industry distribution chart, Firstrand ranks #670 out of 1469 companies for 3-Year RORE %. This puts Firstrand in the upper half of its industry. The industry median 3-Year RORE % is 9.89. Firstrand's value of 12.03 is 21.6% 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 Banks company?
The median 3-Year RORE % among Banks companies is 9.89, based on 1,469 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. Firstrand's current 3-Year RORE % of 12.03 is 21.6% 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 Firstrand and its competitors. For the Banks industry, the median 3-Year RORE % is 9.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Firstrand's current 3-Year RORE % is 12.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Firstrand stock overvalued right now?
Based on GuruFocus' analysis, Firstrand (NAM:FST) is currently considered Modestly Overvalued. The stock's GF Value™ is R84.36, compared to a current price of R96.23 — trading 14.1% above its estimated fair value. The current 3-Year RORE % is 12.03 and 21.6% above the Banks industry median of 9.89. Firstrand's overall GF Score™ is 85/100 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 Firstrand (NAM:FST), the current 3-Year RORE % is 12.03 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 Firstrand (NAM:FST) Overvalued in 2026?
Based on GuruFocus' analysis, Firstrand stock appears to be overvalued.
The current stock price of R96.23 is trading 14.1% above its estimated GF Value™ of R84.36.
GuruFocus considers Firstrand to be Modestly Overvalued.
Key valuation signals for NAM:FST:
3-Year RORE %: 12.03
GF Value™: R84.36 vs. price of R96.23 (14.1% above fair value)
Industry Position: 21.6% above the Banks median (#670 of 1469)
No single metric tells the full story. See the NAM:FST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Firstrand Ltd wholly owns FirstRand Bank, a full-service bank providing a comprehensive range of retail, commercial, corporate and investment banking services in South Africa and offers niche products. The bank has three divisions, which are separately branded: First National Bank (FNB), WesBank and Rand Merchant Bank (RMB). The firm's reportable segment includes Retail and commercial segment, Corporate and institutional segment, Centre (including group treasury), Firstrand Bank Normalised, and Normalised adjustments.
85GF Score
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