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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.
Arcs Co's 3-Year RORE % for the quarter that ended in May. 2026 was 5.63%.
The industry rank for Arcs Co's 3-Year RORE % or its related term are showing as below:
TSE:9948's 3-Year RORE % is ranked better than 51.19% of 1053
companies
in the Retail - Cyclical industry
Industry Median: 4.09
vs TSE:9948: 5.63
Arcs Co (TSE:9948) 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.
Arcs Co 3-Year RORE % Related Terms
Arcs Co 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Arcs Co'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.
For the Department Stores subindustry, Arcs 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.
Arcs Co 3-Year RORE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Arcs Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Arcs 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 May. 2026 and 3-year before.
Arcs Co (TSE:9948) has a 3-Year RORE % of 5.63 as of May. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Arcs Co and its competitors. According to the industry distribution chart, Arcs Co ranks #514 out of 1053 companies in the Retail - Cyclical industry, placing it in the top 48.8%.
Is Arcs Co's 3-Year RORE % too high?
Arcs Co's current 3-Year RORE % is 5.63. The Retail - Cyclical industry median 3-Year RORE % is 4.09. Arcs Co's value of 5.63 is 37.7% above this industry median. Based on the distribution chart, Arcs Co ranks #514 out of 1053 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Arcs Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arcs Co's 3-Year RORE % compare to DDS?
According to the Retail - Cyclical industry distribution chart, Arcs Co ranks #514 out of 1053 companies for 3-Year RORE %. This puts Arcs Co in the upper half of its industry. The industry median 3-Year RORE % is 4.09. Arcs Co's value of 5.63 is 37.7% 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 Retail - Cyclical company?
The median 3-Year RORE % among Retail - Cyclical companies is 4.09, based on 1,053 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. Arcs Co's current 3-Year RORE % of 5.63 is 37.7% 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 Arcs Co and its competitors. For the Retail - Cyclical industry, the median 3-Year RORE % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arcs Co's current 3-Year RORE % is 5.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arcs Co stock overvalued right now?
Based on GuruFocus' analysis, Arcs Co (TSE:9948) is currently considered Fairly Valued. The stock's GF Value™ is 円3,173.08, compared to a current price of 円3,490.00 — trading 10% above its estimated fair value. The current 3-Year RORE % is 5.63 and 37.7% above the Retail - Cyclical industry median of 4.09. Arcs Co's overall GF Score™ is 85/100 with 3 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 Arcs Co (TSE:9948), the current 3-Year RORE % is 5.63 as of May. 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 Arcs Co (TSE:9948) Overvalued in 2026?
Based on GuruFocus' analysis, Arcs Co stock appears to be overvalued.
The current stock price of 円3,490.00 is trading 10% above its estimated GF Value™ of 円3,173.08.
GuruFocus considers Arcs Co to be Fairly Valued.
Key valuation signals for TSE:9948:
3-Year RORE %: 5.63
GF Value™: 円3,173.08 vs. price of 円3,490.00 (10% above fair value)
Industry Position: 37.7% above the Retail - Cyclical median (#514 of 1053)
No single metric tells the full story. See the TSE:9948 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arcs Co Ltd is a Japan-based company principally engaged in the supermarket business. The company also operates other businesses through subsidiaries, including tourism, building maintenance, real estate leasing, property and casualty insurance, life insurance agency, wholesale, food manufacturing, industrial and general waste collection, and construction businesses. The group operates in a single segment related to retail.
85GF Score
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