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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.
Taiwan Semiconductor Co's 3-Year RORE % for the quarter that ended in Mar. 2026 was 4.35%.
The industry rank for Taiwan Semiconductor Co's 3-Year RORE % or its related term are showing as below:
ROCO:5425's 3-Year RORE % is ranked worse than 56.67% of 967
companies
in the Semiconductors industry
Industry Median: 13.03
vs ROCO:5425: 4.35
Taiwan Semiconductor Co (ROCO:5425) 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.
Taiwan Semiconductor Co 3-Year RORE % Related Terms
Taiwan Semiconductor Co 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.
ROCO:5425 vs NVDA, AVGO, MU: 3-Year RORE % Comparison
For the Semiconductors subindustry, Taiwan Semiconductor Co'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.
Taiwan Semiconductor Co 3-Year RORE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Co'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.
Taiwan Semiconductor Co (ROCO:5425) has a 3-Year RORE % of 4.35 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 Taiwan Semiconductor Co and its competitors. According to the industry distribution chart, Taiwan Semiconductor Co ranks #548 out of 967 companies in the Semiconductors industry, placing it in the top 56.7%.
Is Taiwan Semiconductor Co's 3-Year RORE % too high?
Taiwan Semiconductor Co's current 3-Year RORE % is 4.35. The Semiconductors industry median 3-Year RORE % is 13.03. Taiwan Semiconductor Co's value of 4.35 is 66.6% below this industry median. Based on the distribution chart, Taiwan Semiconductor Co ranks #548 out of 967 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Taiwan Semiconductor Co has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Co's 3-Year RORE % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Co ranks #548 out of 967 companies for 3-Year RORE %. This places Taiwan Semiconductor Co in the lower half of its industry. The industry median 3-Year RORE % is 13.03. Taiwan Semiconductor Co's value of 4.35 is 66.6% below 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 Semiconductors company?
The median 3-Year RORE % among Semiconductors companies is 13.03, based on 967 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. Taiwan Semiconductor Co's current 3-Year RORE % of 4.35 is 66.6% below 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 Taiwan Semiconductor Co and its competitors. For the Semiconductors industry, the median 3-Year RORE % is 13.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Co's current 3-Year RORE % is 4.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Semiconductor Co stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Semiconductor Co (ROCO:5425) is currently considered Fairly Valued. The stock's GF Value™ is NT$80.94, compared to a current price of NT$82.50 — trading 1.9% above its estimated fair value. The current 3-Year RORE % is 4.35 and 66.6% below the Semiconductors industry median of 13.03. Taiwan Semiconductor Co's overall GF Score™ is 77/100 with 5 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 Taiwan Semiconductor Co (ROCO:5425), the current 3-Year RORE % is 4.35 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 Taiwan Semiconductor Co (ROCO:5425) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Semiconductor Co stock appears to be overvalued.
The current stock price of NT$82.50 is trading 1.9% above its estimated GF Value™ of NT$80.94.
GuruFocus considers Taiwan Semiconductor Co to be Fairly Valued.
Key valuation signals for ROCO:5425:
3-Year RORE %: 4.35
GF Value™: NT$80.94 vs. price of NT$82.50 (1.9% above fair value)
Industry Position: 66.6% below the Semiconductors median (#548 of 967)
No single metric tells the full story. See the ROCO:5425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Semiconductor Co Ltd is a company that is mainly engaged in the manufacturing and sale of semiconductor devices. The company's segment includes Rectifiers and Bar Code Printers. It generates maximum revenue from the Rectifiers segment. Its product portfolio includes Bridge Rectifier, Diode, DIAC and Thyristor, ESD Protection, Photocoupler, Transistor, Hall Effect Sensors, Voltage Reference, Switching Regulator, Linear Voltage Regulator, Amplifier and Comparator, and others.
77GF Score
Get the complete analysis for ROCO:5425
3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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