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.
Vanda Pharmaceuticals's 3-Year RORE % for the quarter that ended in Mar. 2026 was 81.43%.
The industry rank for Vanda Pharmaceuticals's 3-Year RORE % or its related term are showing as below:
VNDA's 3-Year RORE % is ranked better than 94.33% of 1288
companies
in the Biotechnology industry
Industry Median: -11.54
vs VNDA: 81.43
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.
Vanda Pharmaceuticals 3-Year RORE % Related Terms
Vanda Pharmaceuticals 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Vanda Pharmaceuticals'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.
VNDA vs AVIR, OABI, TENX: 3-Year RORE % Comparison
For the Biotechnology subindustry, Vanda Pharmaceuticals'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.
Vanda Pharmaceuticals 3-Year RORE % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vanda Pharmaceuticals's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Vanda Pharmaceuticals'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.
Vanda Pharmaceuticals (VNDA) has a 3-Year RORE % of 81.43 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 Vanda Pharmaceuticals and its competitors. According to the industry distribution chart, Vanda Pharmaceuticals ranks #73 out of 1288 companies in the Biotechnology industry, placing it in the top 5.7%.
Is Vanda Pharmaceuticals' 3-Year RORE % too high?
Vanda Pharmaceuticals' current 3-Year RORE % is 81.43. Based on the distribution chart, Vanda Pharmaceuticals ranks #73 out of 1288 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Vanda Pharmaceuticals has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vanda Pharmaceuticals' 3-Year RORE % compare to AVIR and OABI?
According to the Biotechnology industry distribution chart, Vanda Pharmaceuticals ranks #73 out of 1288 companies for 3-Year RORE %. This places Vanda Pharmaceuticals in the top 6% of its industry — outperforming the majority of peers. 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 Biotechnology company?
A good 3-Year RORE % depends on the Biotechnology industry context. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Vanda Pharmaceuticals and its competitors. Vanda Pharmaceuticals's current 3-Year RORE % is 81.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vanda Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Vanda Pharmaceuticals (VNDA) is currently considered Modestly Overvalued. The stock's GF Value™ is $5.53, compared to a current price of $6.38 — trading 15.4% above its estimated fair value. The current 3-Year RORE % is 81.43. Vanda Pharmaceuticals' overall GF Score™ is 73/100 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 Vanda Pharmaceuticals (VNDA), the current 3-Year RORE % is 81.43 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 Vanda Pharmaceuticals (VNDA) Overvalued in 2026?
Based on GuruFocus' analysis, Vanda Pharmaceuticals stock appears to be overvalued.
The current stock price of $6.38 is trading 15.4% above its estimated GF Value™ of $5.53.
GuruFocus considers Vanda Pharmaceuticals to be Modestly Overvalued.
Key valuation signals for VNDA:
3-Year RORE %: 81.43
GF Value™: $5.53 vs. price of $6.38 (15.4% above fair value)
No single metric tells the full story. See the VNDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vanda Pharmaceuticals Inc is a biopharmaceutical company engaged in the development and commercialization of therapies to address high unmet medical needs and improve the lives of patients. Its commercial portfolio comprises three products; HETLIOZ for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) & nighttime sleep disturbances in Smith-Magenis Syndrome (SMS); Fanapt for the treatment of schizophrenia; and PONVORY. Its other products include ASO Molecules, VQW-765, Tradipitant, and VTR-297. The maximum of revenue is derived from the Fanapt product sales. Geographically, the company sells its product predominantly in the United States, and also in Israel, Europe, and Canada.
73GF Score
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