Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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.
Redwood Financial's 3-Year RORE % for the quarter that ended in Dec. 2025 was 26.60%.
The industry rank for Redwood Financial's 3-Year RORE % or its related term are showing as below:
REDW's 3-Year RORE % is ranked better than 78.91% of 1470
companies
in the Banks industry
Industry Median: 9.98
vs REDW: 26.60
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.
Redwood Financial 3-Year RORE % Related Terms
Redwood Financial 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Redwood Financial'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.
REDW vs FSEA, PBKX, FBSI: 3-Year RORE % Comparison
For the Banks - Regional subindustry, Redwood Financial'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.
Redwood Financial 3-Year RORE % vs Banks Industry
For the Banks industry and Financial Services sector, Redwood Financial's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Redwood Financial'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.
Redwood Financial (REDW) has a 3-Year RORE % of 26.60 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 Redwood Financial and its competitors. According to the industry distribution chart, Redwood Financial ranks #310 out of 1470 companies in the Banks industry, placing it in the top 21.1%.
Is Redwood Financial's 3-Year RORE % too high?
Redwood Financial's current 3-Year RORE % is 26.60. The Banks industry median 3-Year RORE % is 9.98. Redwood Financial's value of 26.60 is 166.5% above this industry median. Based on the distribution chart, Redwood Financial ranks #310 out of 1470 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Redwood Financial has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Redwood Financial's 3-Year RORE % compare to FSEA and PBKX?
According to the Banks industry distribution chart, Redwood Financial ranks #310 out of 1470 companies for 3-Year RORE %. This places Redwood Financial in the top 21% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 9.98. Redwood Financial's value of 26.60 is 166.5% 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 9.98, based on 1,470 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. Redwood Financial's current 3-Year RORE % of 26.60 is 166.5% 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 Redwood Financial and its competitors. For the Banks industry, the median 3-Year RORE % is 9.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redwood Financial's current 3-Year RORE % is 26.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood Financial stock overvalued right now?
Based on GuruFocus' analysis, Redwood Financial (REDW) is currently considered Fairly Valued. The stock's GF Value™ is $190.51, compared to a current price of $185.25 — trading 2.8% below its estimated fair value. The current 3-Year RORE % is 26.60 and 166.5% above the Banks industry median of 9.98. Redwood Financial's overall GF Score™ is 63/100 with 3 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 Redwood Financial (REDW), the current 3-Year RORE % is 26.60 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 Redwood Financial (REDW) Overvalued in 2026?
Based on GuruFocus' analysis, Redwood Financial stock appears to be undervalued.
The current stock price of $185.25 is trading 2.8% below its estimated GF Value™ of $190.51.
GuruFocus considers Redwood Financial to be Fairly Valued.
Key valuation signals for REDW:
3-Year RORE %: 26.60
GF Value™: $190.51 vs. price of $185.25 (2.8% below fair value)
Industry Position: 166.5% above the Banks median (#310 of 1470)
No single metric tells the full story. See the REDW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Redwood Financial Inc is a state-chartered bank. The Bank provides a variety of financial services to the areas of south central and south western Minnesota, and the south metropolitan area, including mortgage, commercial, agricultural, and consumer lending products and various deposit and savings plans.
63GF Score
Get the complete analysis for REDW
3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
REDW has been successfully added to your 
