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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.
Shandong Donghong Pipe Industry Co's 3-Year RORE % for the quarter that ended in Mar. 2026 was 20.00%.
Shandong Donghong Pipe Industry Co (SHSE:603856) 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.
Shandong Donghong Pipe Industry Co 3-Year RORE % Related Terms
Shandong Donghong Pipe Industry 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.
Shandong Donghong Pipe Industry Co 3-Year RORE % Chart
SHSE:603856 vs TT, JCI, CARR: 3-Year RORE % Comparison
For the Building Products & Equipment subindustry, Shandong Donghong Pipe Industry 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.
Shandong Donghong Pipe Industry Co 3-Year RORE % vs Construction Industry
For the Construction industry and Industrials sector, Shandong Donghong Pipe Industry Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Shandong Donghong Pipe Industry 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.
Shandong Donghong Pipe Industry Co (SHSE:603856) has a 3-Year RORE % of 20.00 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 Shandong Donghong Pipe Industry Co and its competitors. According to the industry distribution chart, Shandong Donghong Pipe Industry Co ranks #643 out of 1645 companies in the Construction industry, placing it in the top 39.1%.
Is Shandong Donghong Pipe Industry Co's 3-Year RORE % too high?
Shandong Donghong Pipe Industry Co's current 3-Year RORE % is 20.00. The Construction industry median 3-Year RORE % is 7.35. Shandong Donghong Pipe Industry Co's value of 20.00 is 172.1% above this industry median. Based on the distribution chart, Shandong Donghong Pipe Industry Co ranks #643 out of 1645 companies in the Construction industry, which is above the industry midpoint. Overall, Shandong Donghong Pipe Industry Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Donghong Pipe Industry Co's 3-Year RORE % compare to TT and JCI?
According to the Construction industry distribution chart, Shandong Donghong Pipe Industry Co ranks #643 out of 1645 companies for 3-Year RORE %. This puts Shandong Donghong Pipe Industry Co in the upper half of its industry. The industry median 3-Year RORE % is 7.35. Shandong Donghong Pipe Industry Co's value of 20.00 is 172.1% 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 Construction company?
The median 3-Year RORE % among Construction companies is 7.35, based on 1,645 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. Shandong Donghong Pipe Industry Co's current 3-Year RORE % of 20.00 is 172.1% 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 Shandong Donghong Pipe Industry Co and its competitors. For the Construction industry, the median 3-Year RORE % is 7.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Donghong Pipe Industry Co's current 3-Year RORE % is 20.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Donghong Pipe Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Donghong Pipe Industry Co (SHSE:603856) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥8.94, compared to a current price of ¥11.38 — trading 27.3% above its estimated fair value. The current 3-Year RORE % is 20.00 and 172.1% above the Construction industry median of 7.35. Shandong Donghong Pipe Industry Co's overall GF Score™ is 76/100 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 Shandong Donghong Pipe Industry Co (SHSE:603856), the current 3-Year RORE % is 20.00 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 Shandong Donghong Pipe Industry Co (SHSE:603856) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Donghong Pipe Industry Co stock appears to be overvalued.
The current stock price of ¥11.38 is trading 27.3% above its estimated GF Value™ of ¥8.94.
GuruFocus considers Shandong Donghong Pipe Industry Co to be Modestly Overvalued.
Key valuation signals for SHSE:603856:
3-Year RORE %: 20.00
GF Value™: ¥8.94 vs. price of ¥11.38 (27.3% above fair value)
Industry Position: 172.1% above the Construction median (#643 of 1645)
No single metric tells the full story. See the SHSE:603856 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Donghong Pipe Industry Co Ltd is engaged in the research and development, manufacturing and service of an intelligent pipeline system in China. Its products line includes steel mesh skeleton plastic composite pipes, super wear-resisting composite pipes, HDPE gas pipes, plastic-coated steel pipes, polyethylene pipes for underground coal mining, and other products.
76GF 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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