XPXP -0.12%71 3-Year RORE % is 11.53 as of Mar. 2026. GuruFocus rates XP with a GF Score™ of 71/100 and a GF Value™ of $34.38 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 764 Capital Markets companies, XP ranks worse than 53.53% on this metric.
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.
XP's 3-Year RORE % for the quarter that ended in Mar. 2026 was 11.53%.
The industry rank for XP's 3-Year RORE % or its related term are showing as below:
XP's 3-Year RORE % is ranked worse than 53.53% of 764
companies
in the Capital Markets industry
Industry Median: 15.115
vs XP: 11.53
XP (NAS:XP) 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.
XP 3-Year RORE % Related Terms
XP 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for XP'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 Capital Markets subindustry, XP'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.
XP 3-Year RORE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, XP's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where XP'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.
XP (XP) has a 3-Year RORE % of 11.53 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 XP and its competitors. According to the industry distribution chart, XP ranks #409 out of 764 companies in the Capital Markets industry, placing it in the top 53.5%.
Is XP's 3-Year RORE % too high?
XP's current 3-Year RORE % is 11.53. The Capital Markets industry median 3-Year RORE % is 15.12. XP's value of 11.53 is 23.7% below this industry median. Based on the distribution chart, XP ranks #409 out of 764 companies in the Capital Markets industry, which is below the industry midpoint. Overall, XP has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does XP's 3-Year RORE % compare to BMNR and HLI?
According to the Capital Markets industry distribution chart, XP ranks #409 out of 764 companies for 3-Year RORE %. This places XP in the lower half of its industry. The industry median 3-Year RORE % is 15.12. XP's value of 11.53 is 23.7% below 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 Capital Markets company?
The median 3-Year RORE % among Capital Markets companies is 15.12, based on 764 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. XP's current 3-Year RORE % of 11.53 is 23.7% below 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 XP and its competitors. For the Capital Markets industry, the median 3-Year RORE % is 15.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. XP's current 3-Year RORE % is 11.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XP stock overvalued right now?
Based on GuruFocus' analysis, XP (XP) is currently considered Possible Value Trap. The stock's GF Value™ is $34.38, compared to a current price of $16.16 — trading 53% below its estimated fair value. The current 3-Year RORE % is 11.53 and 23.7% below the Capital Markets industry median of 15.12. XP's overall GF Score™ is 71/100 with 6 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 XP (XP), the current 3-Year RORE % is 11.53 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 XP (XP) Overvalued in 2026?
Based on GuruFocus' analysis, XP stock appears to be undervalued.
The current stock price of $16.16 is trading 53% below its estimated GF Value™ of $34.38.
GuruFocus considers XP to be Possible Value Trap.
Key valuation signals for XP:
3-Year RORE %: 11.53
GF Value™: $34.38 vs. price of $16.16 (53% below fair value)
Industry Position: 23.7% below the Capital Markets median (#409 of 764)
No single metric tells the full story. See the XP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
XP Inc is a Cayman Island-based technology-driven financial services platform. It is a provider of low-fee financial products and services in Brazil. The company evaluates its business through a single segment such as monitoring operations, making decisions on fund allocation, and evaluating the performance. It generates revenue through the Brokerage commission. Geographically, the company derives maximum revenue from Brazil and also has its presence in other countries.
71GF Score
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