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.
Knorr-Bremse AG's 3-Year RORE % for the quarter that ended in Mar. 2026 was -2.85%.
The industry rank for Knorr-Bremse AG's 3-Year RORE % or its related term are showing as below:
XSWX:KBX's 3-Year RORE % is ranked worse than 57.85% of 1255
companies
in the Vehicles & Parts industry
Industry Median: 3.88
vs XSWX:KBX: -2.85
Knorr-Bremse AG (XSWX:KBX) 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.
Knorr-Bremse AG 3-Year RORE % Related Terms
Knorr-Bremse AG 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Knorr-Bremse AG'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 Auto Parts subindustry, Knorr-Bremse AG'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.
Knorr-Bremse AG 3-Year RORE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Knorr-Bremse AG's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Knorr-Bremse AG'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.
Knorr-Bremse AG (XSWX:KBX) has a 3-Year RORE % of -2.85 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 Knorr-Bremse AG and its competitors. According to the industry distribution chart, Knorr-Bremse AG ranks #726 out of 1255 companies in the Vehicles & Parts industry, placing it in the top 57.8%.
Is Knorr-Bremse AG's 3-Year RORE % too high?
Knorr-Bremse AG's current 3-Year RORE % is -2.85. Based on the distribution chart, Knorr-Bremse AG ranks #726 out of 1255 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Knorr-Bremse AG has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Knorr-Bremse AG's 3-Year RORE % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Knorr-Bremse AG ranks #726 out of 1255 companies for 3-Year RORE %. This places Knorr-Bremse AG in the lower half of its industry. The industry median 3-Year RORE % is 3.88. 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 Vehicles & Parts company?
The median 3-Year RORE % among Vehicles & Parts companies is 3.88, based on 1,255 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 Knorr-Bremse AG and its competitors. For the Vehicles & Parts industry, the median 3-Year RORE % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Knorr-Bremse AG's current 3-Year RORE % is -2.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Knorr-Bremse AG stock overvalued right now?
Knorr-Bremse AG (XSWX:KBX) has a current 3-Year RORE % of -2.85. The stock's GF Value™ is CHF68.68, compared to a current price of CHF93.35 — trading 35.9% above its estimated fair value. The current 3-Year RORE % is -2.85. Knorr-Bremse AG's overall GF Score™ is 84/100 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 Knorr-Bremse AG (XSWX:KBX), the current 3-Year RORE % is -2.85 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 Knorr-Bremse AG (XSWX:KBX) Overvalued in 2026?
Based on GuruFocus' analysis, Knorr-Bremse AG stock appears to be overvalued.
The current stock price of CHF93.35 is trading 35.9% above its estimated GF Value™ of CHF68.68.
Key valuation signals for XSWX:KBX:
3-Year RORE %: -2.85
GF Value™: CHF68.68 vs. price of CHF93.35 (35.9% above fair value)
No single metric tells the full story. See the XSWX:KBX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Knorr-Bremse AG is engaged in the development, production, marketing, and servicing of Automotive parts. It operates its business activities in two divisions: Rail Vehicle Systems and Commercial Vehicle Systems. Its product portfolio comprises Braking, entrance, and HVAC systems; power electric and control technology; digital solutions; couplers; signal systems; pneumatic braking systems; energy supply and distribution systems; wiper and wash systems; and others. Maximum of revenue is from Rail Vehicle System. Its geographical segments are Europe/Africa, North America, South America, and Asia-Pacific. The majority of its revenue is from Europe/Africa.
84GF Score
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