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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.
Principal Financial Group's 3-Year RORE % for the quarter that ended in Mar. 2026 was 20.22%.
The industry rank for Principal Financial Group's 3-Year RORE % or its related term are showing as below:
PFG's 3-Year RORE % is ranked better than 54.77% of 1532
companies
in the Asset Management industry
Industry Median: 12.18
vs PFG: 20.22
Principal Financial Group (NAS:PFG) 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.
Principal Financial Group 3-Year RORE % Related Terms
Principal Financial Group 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.
For the Asset Management subindustry, Principal Financial Group'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.
Principal Financial Group 3-Year RORE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Principal Financial Group's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Principal Financial Group'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.
Principal Financial Group (PFG) has a 3-Year RORE % of 20.22 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 Principal Financial Group and its competitors. According to the industry distribution chart, Principal Financial Group ranks #693 out of 1532 companies in the Asset Management industry, placing it in the top 45.2%.
Is Principal Financial Group's 3-Year RORE % too high?
Principal Financial Group's current 3-Year RORE % is 20.22. The Asset Management industry median 3-Year RORE % is 12.18. Principal Financial Group's value of 20.22 is 66% above this industry median. Based on the distribution chart, Principal Financial Group ranks #693 out of 1532 companies in the Asset Management industry, which is above the industry midpoint. Overall, Principal Financial Group has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Principal Financial Group's 3-Year RORE % compare to TROW and ARES?
According to the Asset Management industry distribution chart, Principal Financial Group ranks #693 out of 1532 companies for 3-Year RORE %. This puts Principal Financial Group in the upper half of its industry. The industry median 3-Year RORE % is 12.18. Principal Financial Group's value of 20.22 is 66% 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 an Asset Management company?
The median 3-Year RORE % among Asset Management companies is 12.18, based on 1,532 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. Principal Financial Group's current 3-Year RORE % of 20.22 is 66% 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 Principal Financial Group and its competitors. For the Asset Management industry, the median 3-Year RORE % is 12.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Principal Financial Group's current 3-Year RORE % is 20.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Principal Financial Group stock overvalued right now?
Based on GuruFocus' analysis, Principal Financial Group (PFG) is currently considered Modestly Overvalued. The stock's GF Value™ is $91.08, compared to a current price of $113.91 — trading 25.1% above its estimated fair value. The current 3-Year RORE % is 20.22 and 66% above the Asset Management industry median of 12.18. Principal Financial Group's overall GF Score™ is 70/100 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 Principal Financial Group (PFG), the current 3-Year RORE % is 20.22 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 Principal Financial Group (PFG) Overvalued in 2026?
Based on GuruFocus' analysis, Principal Financial Group stock appears to be overvalued.
The current stock price of $113.91 is trading 25.1% above its estimated GF Value™ of $91.08.
GuruFocus considers Principal Financial Group to be Modestly Overvalued.
Key valuation signals for PFG:
3-Year RORE %: 20.22
GF Value™: $91.08 vs. price of $113.91 (25.1% above fair value)
Industry Position: 66% above the Asset Management median (#693 of 1532)
No single metric tells the full story. See the PFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Principal Financial Group Inc is a financial services provider. It offers various financial products and services including retirement, asset management, and workplace benefits and protection solutions to individuals and institutional clients. The company, along with its subsidiaries, operates in the following reportable segments; Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection. Maximum revenue is generated from the Retirement and Income Solutions segment which provides workplace savings and retirement solutions, banking, trust and custodial services, individual variable annuities (including RILAs), pension risk transfer, and investment services to businesses, their employees, and other individuals.
70GF 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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