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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.
Newgen Software Technologies's 3-Year RORE % for the quarter that ended in Jun. 2026 was 6.21%.
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.
Newgen Software Technologies 3-Year RORE % Related Terms
Newgen Software Technologies 3-Year RORE % Historical Data
* 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.
NSE:NEWGEN vs MSFT, ORCL, PLTR: 3-Year RORE % Comparison
For the Software - Infrastructure subindustry, Newgen Software 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.
Newgen Software Technologies 3-Year RORE % vs Software Industry
For the Software industry and Technology sector, Newgen Software Technologies's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Newgen Software 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 Jun. 2026 and 3-year before.
Newgen Software Technologies (NSE:NEWGEN) has a 3-Year RORE % of 6.21 as of Jun. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Newgen Software Technologies and its competitors. According to the industry distribution chart, Newgen Software Technologies ranks #1195 out of 2547 companies in the Software industry, placing it in the top 46.9%.
Is Newgen Software Technologies' 3-Year RORE % too high?
Newgen Software Technologies' current 3-Year RORE % is 6.21. The Software industry median 3-Year RORE % is 2.90. Newgen Software Technologies' value of 6.21 is 114.1% above this industry median. Based on the distribution chart, Newgen Software Technologies ranks #1195 out of 2547 companies in the Software industry, which is above the industry midpoint. Overall, Newgen Software Technologies has a GF Score™ of 92/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Newgen Software Technologies' 3-Year RORE % compare to MSFT and ORCL?
According to the Software industry distribution chart, Newgen Software Technologies ranks #1195 out of 2547 companies for 3-Year RORE %. This puts Newgen Software Technologies in the upper half of its industry. The industry median 3-Year RORE % is 2.90. Newgen Software Technologies' value of 6.21 is 114.1% 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 2.90, based on 2,547 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. Newgen Software Technologies's current 3-Year RORE % of 6.21 is 114.1% 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 Newgen Software Technologies and its competitors. For the Software industry, the median 3-Year RORE % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Newgen Software Technologies's current 3-Year RORE % is 6.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newgen Software Technologies stock overvalued right now?
Based on GuruFocus' analysis, Newgen Software Technologies (NSE:NEWGEN) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,059.16, compared to a current price of ₹533.15 — trading 49.7% below its estimated fair value. The current 3-Year RORE % is 6.21 and 114.1% above the Software industry median of 2.90. Newgen Software Technologies' overall GF Score™ is 92/100 with 1 warning sign 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 Newgen Software Technologies (NSE:NEWGEN), the current 3-Year RORE % is 6.21 as of Jun. 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 Newgen Software Technologies (NSE:NEWGEN) Overvalued in 2026?
Based on GuruFocus' analysis, Newgen Software Technologies stock appears to be undervalued.
The current stock price of ₹533.15 is trading 49.7% below its estimated GF Value™ of ₹1,059.16.
GuruFocus considers Newgen Software Technologies to be Significantly Undervalued.
Key valuation signals for NSE:NEWGEN:
3-Year RORE %: 6.21
GF Value™: ₹1,059.16 vs. price of ₹533.15 (49.7% below fair value)
Industry Position: 114.1% above the Software median (#1195 of 2547)
No single metric tells the full story. See the NSE:NEWGEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Newgen Software Technologies Ltd is a software company. It is engaged in software product development including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow automation to Document management to imaging. The entity's geographical segments are India; USA, and Africa (EMEA); Asia Pacific (APAC); and the United States of America (USA). It generates key revenue from India and the EMEA region. The company's NewgenONE Platform is a unified low-code platform for end-to-end automation at scale for enterprises. The platform offerings include Contextual Content Services (ECM), Intelligent Process Automation (BPM), Omnichannel Customer Engagement (CCM), and Low Code Application Development.
92GF Score
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