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.
Philip Morris International's 3-Year RORE % for the quarter that ended in Mar. 2026 was 204.67%.
XSWX:PMI's 3-Year RORE % is ranked better than 95.35% of 43
companies
in the Tobacco Products industry
Industry Median: 2.44
vs XSWX:PMI: 204.67
Philip Morris International (XSWX:PMI) 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.
Philip Morris International 3-Year RORE % Related Terms
Philip Morris International 3-Year RORE % Historical Data
* 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:PMI vs MO, TPB, UVV: 3-Year RORE % Comparison
For the Tobacco subindustry, Philip Morris International'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.
Philip Morris International 3-Year RORE % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Philip Morris International'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.
Philip Morris International (XSWX:PMI) has a 3-Year RORE % of 204.67 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 Philip Morris International and its competitors. According to the industry distribution chart, Philip Morris International ranks #2 out of 43 companies in the Tobacco Products industry, placing it in the top 4.7%.
Is Philip Morris International's 3-Year RORE % too high?
Philip Morris International's current 3-Year RORE % is 204.67. The Tobacco Products industry median 3-Year RORE % is 2.44. Philip Morris International's value of 204.67 is 8288.1% above this industry median. Based on the distribution chart, Philip Morris International ranks #2 out of 43 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, Philip Morris International has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Philip Morris International's 3-Year RORE % compare to MO and TPB?
According to the Tobacco Products industry distribution chart, Philip Morris International ranks #2 out of 43 companies for 3-Year RORE %. This places Philip Morris International in the top 5% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 2.44. Philip Morris International's value of 204.67 is 8288.1% 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 Tobacco Products company?
The median 3-Year RORE % among Tobacco Products companies is 2.44, based on 43 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. Philip Morris International's current 3-Year RORE % of 204.67 is 8288.1% 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 Philip Morris International and its competitors. For the Tobacco Products industry, the median 3-Year RORE % is 2.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Philip Morris International's current 3-Year RORE % is 204.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Philip Morris International stock overvalued right now?
Based on GuruFocus' analysis, Philip Morris International (XSWX:PMI) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF113.86, compared to a current price of CHF145.00 — trading 27.3% above its estimated fair value. The current 3-Year RORE % is 204.67 and 8288.1% above the Tobacco Products industry median of 2.44. Philip Morris International's overall GF Score™ is 86/100 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 Philip Morris International (XSWX:PMI), the current 3-Year RORE % is 204.67 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 Philip Morris International (XSWX:PMI) Overvalued in 2026?
Based on GuruFocus' analysis, Philip Morris International stock appears to be overvalued.
The current stock price of CHF145.00 is trading 27.3% above its estimated GF Value™ of CHF113.86.
GuruFocus considers Philip Morris International to be Modestly Overvalued.
Key valuation signals for XSWX:PMI:
3-Year RORE %: 204.67
GF Value™: CHF113.86 vs. price of CHF145.00 (27.3% above fair value)
Industry Position: 8288.1% above the Tobacco Products median (#2 of 43)
No single metric tells the full story. See the XSWX:PMI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Created from the international operations of Altria in 2008, Philip Morris International sells cigarettes and reduced-risk products, including heat sticks, vapes, and oral nicotine offerings, primarily outside of the US. With the 2023 acquisition of Swedish Match, a leading manufacturer of traditional oral tobacco products and nicotine pouches primarily in the US and Scandinavia, PMI is not only dominant in smokable products but also has the Iqos and Zyn brands, which respectively dominate heated tobacco and nicotine pouches in most markets. It also owns the Veev brand in vapes.
86GF Score
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