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.
Hermes International's 3-Year RORE % for the quarter that ended in Dec. 2025 was 0.68%.
The industry rank for Hermes International's 3-Year RORE % or its related term are showing as below:
XSWX:RMS's 3-Year RORE % is ranked worse than 52.43% of 1051
companies
in the Retail - Cyclical industry
Industry Median: 4.8
vs XSWX:RMS: 0.68
Hermes International (XSWX:RMS) 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.
Hermes International 3-Year RORE % Related Terms
Hermes International 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Hermes International'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 Luxury Goods subindustry, Hermes 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.
Hermes International 3-Year RORE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Hermes International's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Hermes 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 Dec. 2025 and 3-year before.
Hermes International (XSWX:RMS) has a 3-Year RORE % of 0.68 as of Dec. 2025. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Hermes International and its competitors. According to the industry distribution chart, Hermes International ranks #551 out of 1051 companies in the Retail - Cyclical industry, placing it in the top 52.4%.
Is Hermes International's 3-Year RORE % too high?
Hermes International's current 3-Year RORE % is 0.68. The Retail - Cyclical industry median 3-Year RORE % is 4.80. Hermes International's value of 0.68 is 85.8% below this industry median. Based on the distribution chart, Hermes International ranks #551 out of 1051 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Hermes International has a GF Score™ of 98/100, reflecting its overall financial health beyond just this single metric.
How does Hermes International's 3-Year RORE % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Hermes International ranks #551 out of 1051 companies for 3-Year RORE %. This places Hermes International in the lower half of its industry. The industry median 3-Year RORE % is 4.80. Hermes International's value of 0.68 is 85.8% 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 Retail - Cyclical company?
The median 3-Year RORE % among Retail - Cyclical companies is 4.80, based on 1,051 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. Hermes International's current 3-Year RORE % of 0.68 is 85.8% 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 Hermes International and its competitors. For the Retail - Cyclical industry, the median 3-Year RORE % is 4.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hermes International's current 3-Year RORE % is 0.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hermes International stock overvalued right now?
Hermes International (XSWX:RMS) has a current 3-Year RORE % of 0.68. The stock's GF Value™ is CHF2,497.81, compared to a current price of CHF1,621.50 — trading 35.1% below its estimated fair value. The current 3-Year RORE % is 0.68 and 85.8% below the Retail - Cyclical industry median of 4.80. Hermes International's overall GF Score™ is 98/100 with 1 warning sign 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 Hermes International (XSWX:RMS), the current 3-Year RORE % is 0.68 as of Dec. 2025. 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 Hermes International (XSWX:RMS) Overvalued in 2026?
Based on GuruFocus' analysis, Hermes International stock appears to be undervalued.
The current stock price of CHF1,621.50 is trading 35.1% below its estimated GF Value™ of CHF2,497.81.
Key valuation signals for XSWX:RMS:
3-Year RORE %: 0.68
GF Value™: CHF2,497.81 vs. price of CHF1,621.50 (35.1% below fair value)
Industry Position: 85.8% below the Retail - Cyclical median (#551 of 1051)
No single metric tells the full story. See the XSWX:RMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hermès is over 180-year-old family controlled luxury goods company best known for its Birkin and Kelly bags. Its biggest segments are leather goods and saddlery, accounting for over 40% of revenue; clothes and accessories (28% of sales); silk and textiles (6%); and other products such as perfumes, watches, jewellery, and home furnishings. Hermès has about 300 stores globally.
98GF Score
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