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.
Cisco Systems's 3-Year RORE % for the quarter that ended in Apr. 2026 was -2.69%.
The industry rank for Cisco Systems's 3-Year RORE % or its related term are showing as below:
XSWX:CSCO's 3-Year RORE % is ranked worse than 51.99% of 2383
companies
in the Hardware industry
Industry Median: 5.1
vs XSWX:CSCO: -2.69
Cisco Systems (XSWX:CSCO) 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.
Cisco Systems 3-Year RORE % Related Terms
Cisco Systems 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Cisco Systems'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.
XSWX:CSCO vs CIEN, MSI, LITE: 3-Year RORE % Comparison
For the Communication Equipment subindustry, Cisco Systems'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.
Cisco Systems 3-Year RORE % vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Cisco Systems'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 Apr. 2026 and 3-year before.
Cisco Systems (XSWX:CSCO) has a 3-Year RORE % of -2.69 as of Apr. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Cisco Systems and its competitors. According to the industry distribution chart, Cisco Systems ranks #1239 out of 2383 companies in the Hardware industry, placing it in the top 52%.
Is Cisco Systems' 3-Year RORE % too high?
Cisco Systems' current 3-Year RORE % is -2.69. Based on the distribution chart, Cisco Systems ranks #1239 out of 2383 companies in the Hardware industry, which is below the industry midpoint. Overall, Cisco Systems has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' 3-Year RORE % compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #1239 out of 2383 companies for 3-Year RORE %. This places Cisco Systems in the lower half of its industry. The industry median 3-Year RORE % is 5.10. 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 Hardware company?
The median 3-Year RORE % among Hardware companies is 5.10, based on 2,383 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. 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 Cisco Systems and its competitors. For the Hardware industry, the median 3-Year RORE % is 5.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current 3-Year RORE % is -2.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cisco Systems stock overvalued right now?
Cisco Systems (XSWX:CSCO) has a current 3-Year RORE % of -2.69. The stock's GF Value™ is CHF55.06, compared to a current price of CHF94.69 — trading 72% above its estimated fair value. The current 3-Year RORE % is -2.69. Cisco Systems' overall GF Score™ is 81/100 with 9 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 Cisco Systems (XSWX:CSCO), the current 3-Year RORE % is -2.69 as of Apr. 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 Cisco Systems (XSWX:CSCO) Overvalued in 2026?
Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued.
The current stock price of CHF94.69 is trading 72% above its estimated GF Value™ of CHF55.06.
Key valuation signals for XSWX:CSCO:
3-Year RORE %: -2.69
GF Value™: CHF55.06 vs. price of CHF94.69 (72% above fair value)
No single metric tells the full story. See the XSWX:CSCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software such as firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employs 80,000 people and sells its products globally.
81GF Score
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3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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