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.
Sage Group (The)'s 3-Year RORE % for the quarter that ended in Mar. 2026 was 41.15%.
The industry rank for Sage Group (The)'s 3-Year RORE % or its related term are showing as below:
SGPYY's 3-Year RORE % is ranked better than 77.57% of 2541
companies
in the Software industry
Industry Median: 2.73
vs SGPYY: 41.15
Sage Group (The) (OTCPK:SGPYY) 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.
Sage Group (The) 3-Year RORE % Related Terms
Sage Group (The) 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Sage Group (The)'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.
SGPYY vs UBER, SHOP, CRM: 3-Year RORE % Comparison
For the Software - Application subindustry, Sage Group (The)'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.
Sage Group (The) 3-Year RORE % vs Software Industry
For the Software industry and Technology sector, Sage Group (The)'s 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Sage Group (The)'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.
Sage Group (The) (SGPYY) has a 3-Year RORE % of 41.15 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 Sage Group (The) and its competitors. According to the industry distribution chart, Sage Group (The) ranks #570 out of 2541 companies in the Software industry, placing it in the top 22.4%.
Is Sage Group (The)'s 3-Year RORE % too high?
Sage Group (The)'s current 3-Year RORE % is 41.15. The Software industry median 3-Year RORE % is 2.73. Sage Group (The)'s value of 41.15 is 1407.3% above this industry median. Based on the distribution chart, Sage Group (The) ranks #570 out of 2541 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Sage Group (The) has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sage Group (The)'s 3-Year RORE % compare to UBER and SHOP?
According to the Software industry distribution chart, Sage Group (The) ranks #570 out of 2541 companies for 3-Year RORE %. This places Sage Group (The) in the top 22% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 2.73. Sage Group (The)'s value of 41.15 is 1407.3% 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 2.73, based on 2,541 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. Sage Group (The)'s current 3-Year RORE % of 41.15 is 1407.3% 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 Sage Group (The) and its competitors. For the Software industry, the median 3-Year RORE % is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sage Group (The)'s current 3-Year RORE % is 41.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sage Group (The) stock overvalued right now?
Based on GuruFocus' analysis, Sage Group (The) (SGPYY) is currently considered Significantly Undervalued. The stock's GF Value™ is $73.47, compared to a current price of $44.99 — trading 38.8% below its estimated fair value. The current 3-Year RORE % is 41.15 and 1407.3% above the Software industry median of 2.73. Sage Group (The)'s overall GF Score™ is 84/100 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 Sage Group (The) (SGPYY), the current 3-Year RORE % is 41.15 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 Sage Group (The) (SGPYY) Overvalued in 2026?
Based on GuruFocus' analysis, Sage Group (The) stock appears to be undervalued.
The current stock price of $44.99 is trading 38.8% below its estimated GF Value™ of $73.47.
GuruFocus considers Sage Group (The) to be Significantly Undervalued.
Key valuation signals for SGPYY:
3-Year RORE %: 41.15
GF Value™: $73.47 vs. price of $44.99 (38.8% below fair value)
Industry Position: 1407.3% above the Software median (#570 of 2541)
No single metric tells the full story. See the SGPYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Sage Group is a UK-based provider of accounting and enterprise resource planning software, predominantly to customers in the US and Europe. The company was founded in 1981 and historically sold on-premises software products with perpetual software licenses. However, the company is transitioning toward cloud-connected and cloud native products, sold via software-as-a-service contracts. Sage's main cloud-native products include Sage Accounting, for small businesses, and Sage Intacct, which Sage acquired in 2017, for midsize businesses.
84GF Score
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