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.
Algoma Steel Group's 3-Year RORE % for the quarter that ended in Mar. 2026 was 85.16%.
The industry rank for Algoma Steel Group's 3-Year RORE % or its related term are showing as below:
TSX:ASTL's 3-Year RORE % is ranked better than 85.67% of 600
companies
in the Steel industry
Industry Median: 0.57
vs TSX:ASTL: 85.16
Algoma Steel Group (TSX:ASTL) 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.
Algoma Steel Group 3-Year RORE % Related Terms
Algoma Steel Group 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Algoma Steel Group'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.
TSX:ASTL vs NUE, STLD, RS: 3-Year RORE % Comparison
For the Steel subindustry, Algoma Steel Group'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.
Algoma Steel Group 3-Year RORE % vs Steel Industry
For the Steel industry and Basic Materials sector, Algoma Steel Group's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Algoma Steel Group'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.
Algoma Steel Group (TSX:ASTL) has a 3-Year RORE % of 85.16 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 Algoma Steel Group and its competitors. According to the industry distribution chart, Algoma Steel Group ranks #86 out of 600 companies in the Steel industry, placing it in the top 14.3%.
Is Algoma Steel Group's 3-Year RORE % too high?
Algoma Steel Group's current 3-Year RORE % is 85.16. The Steel industry median 3-Year RORE % is 0.57. Algoma Steel Group's value of 85.16 is 14840.4% above this industry median. Based on the distribution chart, Algoma Steel Group ranks #86 out of 600 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Algoma Steel Group has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Algoma Steel Group's 3-Year RORE % compare to NUE and STLD?
According to the Steel industry distribution chart, Algoma Steel Group ranks #86 out of 600 companies for 3-Year RORE %. This places Algoma Steel Group in the top 14% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 0.57. Algoma Steel Group's value of 85.16 is 14840.4% 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 Steel company?
The median 3-Year RORE % among Steel companies is 0.57, based on 600 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. Algoma Steel Group's current 3-Year RORE % of 85.16 is 14840.4% 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 Algoma Steel Group and its competitors. For the Steel industry, the median 3-Year RORE % is 0.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Algoma Steel Group's current 3-Year RORE % is 85.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Algoma Steel Group stock overvalued right now?
Based on GuruFocus' analysis, Algoma Steel Group (TSX:ASTL) is currently considered Possible Value Trap. The stock's GF Value™ is C$7.80, compared to a current price of C$5.35 — trading 31.4% below its estimated fair value. The current 3-Year RORE % is 85.16 and 14840.4% above the Steel industry median of 0.57. Algoma Steel Group's overall GF Score™ is 59/100 with 7 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 Algoma Steel Group (TSX:ASTL), the current 3-Year RORE % is 85.16 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 Algoma Steel Group (TSX:ASTL) Overvalued in 2026?
Based on GuruFocus' analysis, Algoma Steel Group stock appears to be undervalued.
The current stock price of C$5.35 is trading 31.4% below its estimated GF Value™ of C$7.80.
GuruFocus considers Algoma Steel Group to be Possible Value Trap.
Key valuation signals for TSX:ASTL:
3-Year RORE %: 85.16
GF Value™: C$7.80 vs. price of C$5.35 (31.4% below fair value)
Industry Position: 14840.4% above the Steel median (#86 of 600)
No single metric tells the full story. See the TSX:ASTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Algoma Steel Group Inc is a fully integrated steel producer of hot and cold rolled steel products, including coiled sheet and plate, strategically located. The firm operates in a single segment of basic steel production including sheets, plates, slabs, and freights. The company's revenue is generated from contracts to produce, ship, and deliver steel products Geographically it serves Canada, the United States, and the rest of the world, whilst driving key revenue from United States. The company generates the majority of its revenue from the sale of Steel sheets and strips.
59GF Score
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