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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.
Xiamen Leading Optics Co's 3-Year RORE % for the quarter that ended in Mar. 2026 was 58.53%.
The industry rank for Xiamen Leading Optics Co's 3-Year RORE % or its related term are showing as below:
SHSE:605118's 3-Year RORE % is ranked better than 82.17% of 2383
companies
in the Hardware industry
Industry Median: 6.59
vs SHSE:605118: 58.53
Xiamen Leading Optics Co (SHSE:605118) 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.
Xiamen Leading Optics Co 3-Year RORE % Related Terms
Xiamen Leading Optics 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.
SHSE:605118 vs APH, GLW, TEL: 3-Year RORE % Comparison
For the Electronic Components subindustry, Xiamen Leading Optics 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.
Xiamen Leading Optics Co 3-Year RORE % vs Hardware Industry
For the Hardware industry and Technology sector, Xiamen Leading Optics Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Xiamen Leading Optics 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.
Xiamen Leading Optics Co (SHSE:605118) has a 3-Year RORE % of 58.53 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 Xiamen Leading Optics Co and its competitors. According to the industry distribution chart, Xiamen Leading Optics Co ranks #425 out of 2383 companies in the Hardware industry, placing it in the top 17.8%.
Is Xiamen Leading Optics Co's 3-Year RORE % too high?
Xiamen Leading Optics Co's current 3-Year RORE % is 58.53. The Hardware industry median 3-Year RORE % is 6.59. Xiamen Leading Optics Co's value of 58.53 is 788.2% above this industry median. Based on the distribution chart, Xiamen Leading Optics Co ranks #425 out of 2383 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Xiamen Leading Optics Co has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Xiamen Leading Optics Co's 3-Year RORE % compare to APH and GLW?
According to the Hardware industry distribution chart, Xiamen Leading Optics Co ranks #425 out of 2383 companies for 3-Year RORE %. This places Xiamen Leading Optics Co in the top 18% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 6.59. Xiamen Leading Optics Co's value of 58.53 is 788.2% 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 Hardware company?
The median 3-Year RORE % among Hardware companies is 6.59, based on 2,383 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. Xiamen Leading Optics Co's current 3-Year RORE % of 58.53 is 788.2% 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 Xiamen Leading Optics Co and its competitors. For the Hardware industry, the median 3-Year RORE % is 6.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiamen Leading Optics Co's current 3-Year RORE % is 58.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen Leading Optics Co stock overvalued right now?
Based on GuruFocus' analysis, Xiamen Leading Optics Co (SHSE:605118) is currently considered Fairly Valued. The stock's GF Value™ is ¥28.34, compared to a current price of ¥29.01 — trading 2.4% above its estimated fair value. The current 3-Year RORE % is 58.53 and 788.2% above the Hardware industry median of 6.59. Xiamen Leading Optics Co's overall GF Score™ is 90/100 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 Xiamen Leading Optics Co (SHSE:605118), the current 3-Year RORE % is 58.53 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 Xiamen Leading Optics Co (SHSE:605118) Overvalued in 2026?
Based on GuruFocus' analysis, Xiamen Leading Optics Co stock appears to be overvalued.
The current stock price of ¥29.01 is trading 2.4% above its estimated GF Value™ of ¥28.34.
GuruFocus considers Xiamen Leading Optics Co to be Fairly Valued.
Key valuation signals for SHSE:605118:
3-Year RORE %: 58.53
GF Value™: ¥28.34 vs. price of ¥29.01 (2.4% above fair value)
Industry Position: 788.2% above the Hardware median (#425 of 2383)
No single metric tells the full story. See the SHSE:605118 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiamen Leading Optics Co Ltd is engaged in design, production and sales of optical lenses. The company's products include Surveillance Lens; Automotives Lens; Machine Vision Lens; ITS Lens; Low Distortion Lens; Consumer Imaging; and Panoramic Lens. Its products are used in multiple fields of application including security surveillance, medical and biological studies and researches, intelligent traffic systems, video conference, intelligent home security, sports camera and many more.
90GF Score
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