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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.
Showa System Engineering's 3-Year RORE % for the quarter that ended in Mar. 2026 was 8.61%.
The industry rank for Showa System Engineering's 3-Year RORE % or its related term are showing as below:
TSE:4752's 3-Year RORE % is ranked better than 56.05% of 2544
companies
in the Software industry
Industry Median: 3.08
vs TSE:4752: 8.61
Showa System Engineering (TSE:4752) 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.
Showa System Engineering 3-Year RORE % Related Terms
Showa System Engineering 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.
TSE:4752 vs IBM, ACN, FISV: 3-Year RORE % Comparison
For the Information Technology Services subindustry, Showa System Engineering'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.
Showa System Engineering 3-Year RORE % vs Software Industry
For the Software industry and Technology sector, Showa System Engineering's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Showa System Engineering'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.
Showa System Engineering (TSE:4752) has a 3-Year RORE % of 8.61 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 Showa System Engineering and its competitors. According to the industry distribution chart, Showa System Engineering ranks #1118 out of 2544 companies in the Software industry, placing it in the top 43.9%.
Is Showa System Engineering's 3-Year RORE % too high?
Showa System Engineering's current 3-Year RORE % is 8.61. The Software industry median 3-Year RORE % is 3.08. Showa System Engineering's value of 8.61 is 179.5% above this industry median. Based on the distribution chart, Showa System Engineering ranks #1118 out of 2544 companies in the Software industry, which is above the industry midpoint. Overall, Showa System Engineering has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Showa System Engineering's 3-Year RORE % compare to IBM and ACN?
According to the Software industry distribution chart, Showa System Engineering ranks #1118 out of 2544 companies for 3-Year RORE %. This puts Showa System Engineering in the upper half of its industry. The industry median 3-Year RORE % is 3.08. Showa System Engineering's value of 8.61 is 179.5% 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 Software company?
The median 3-Year RORE % among Software companies is 3.08, based on 2,544 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. Showa System Engineering's current 3-Year RORE % of 8.61 is 179.5% 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 Showa System Engineering and its competitors. For the Software industry, the median 3-Year RORE % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Showa System Engineering's current 3-Year RORE % is 8.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Showa System Engineering stock overvalued right now?
Based on GuruFocus' analysis, Showa System Engineering (TSE:4752) is currently considered Fairly Valued. The stock's GF Value™ is 円1,593.84, compared to a current price of 円1,559.00 — trading 2.2% below its estimated fair value. The current 3-Year RORE % is 8.61 and 179.5% above the Software industry median of 3.08. Showa System Engineering's overall GF Score™ is 75/100. 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 Showa System Engineering (TSE:4752), the current 3-Year RORE % is 8.61 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 Showa System Engineering (TSE:4752) Overvalued in 2026?
Based on GuruFocus' analysis, Showa System Engineering stock appears to be undervalued.
The current stock price of 円1,559.00 is trading 2.2% below its estimated GF Value™ of 円1,593.84.
GuruFocus considers Showa System Engineering to be Fairly Valued.
Key valuation signals for TSE:4752:
3-Year RORE %: 8.61
GF Value™: 円1,593.84 vs. price of 円1,559.00 (2.2% below fair value)
Industry Position: 179.5% above the Software median (#1118 of 2544)
No single metric tells the full story. See the TSE:4752 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Showa System Engineering Corp is engaged in development of information systems, system integration, consulting, software design, and development related to corporate computer systems. The company also provides business support services to various industries, such as administrative services for financial institutions, medical checkup reservations, and scanning services.
75GF Score
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