CertaraCERT +8.46%54 5-Year RORE % is 3.97 as of Mar. 2026. GuruFocus rates CERT with a GF Score™ of 54/100 and a GF Value™ of $13.40 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 508 Healthcare Providers & Services companies, Certara ranks better than 51.18% 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.
Certara's 5-Year RORE % for the quarter that ended in Mar. 2026 was 3.97%.
The industry rank for Certara's 5-Year RORE % or its related term are showing as below:
CERT's 5-Year RORE % is ranked better than 51.18% of 508
companies
in the Healthcare Providers & Services industry
Industry Median: 2.845
vs CERT: 3.97
Certara (NAS:CERT) 5-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, 5-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.
Certara 5-Year RORE % Related Terms
Certara 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Certara's 5-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.
CERT vs TALK, GDRX, HSTM: 5-Year RORE % Comparison
For the Health Information Services subindustry, Certara's 5-Year RORE %, along with its competitors' market caps and 5-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.
Certara 5-Year RORE % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Certara's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Certara's 5-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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
Certara (CERT) has a 5-Year RORE % of 3.97 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Certara and its competitors. According to the industry distribution chart, Certara ranks #248 out of 508 companies in the Healthcare Providers & Services industry, placing it in the top 48.8%.
Is Certara's 5-Year RORE % too high?
Certara's current 5-Year RORE % is 3.97. The Healthcare Providers & Services industry median 5-Year RORE % is 2.85. Certara's value of 3.97 is 39.5% above this industry median. Based on the distribution chart, Certara ranks #248 out of 508 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Certara has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Certara's 5-Year RORE % compare to TALK and GDRX?
According to the Healthcare Providers & Services industry distribution chart, Certara ranks #248 out of 508 companies for 5-Year RORE %. This puts Certara in the upper half of its industry. The industry median 5-Year RORE % is 2.85. Certara's value of 3.97 is 39.5% 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 5-Year RORE % for a Healthcare Providers & Services company?
The median 5-Year RORE % among Healthcare Providers & Services companies is 2.85, based on 508 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Certara's current 5-Year RORE % of 3.97 is 39.5% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Certara and its competitors. For the Healthcare Providers & Services industry, the median 5-Year RORE % is 2.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Certara's current 5-Year RORE % is 3.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Certara stock overvalued right now?
Based on GuruFocus' analysis, Certara (CERT) is currently considered Possible Value Trap. The stock's GF Value™ is $13.40, compared to a current price of $6.29 — trading 53.1% below its estimated fair value. The current 5-Year RORE % is 3.97 and 39.5% above the Healthcare Providers & Services industry median of 2.85. Certara's overall GF Score™ is 54/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Certara (CERT), the current 5-Year RORE % is 3.97 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 Certara (CERT) Overvalued in 2026?
Based on GuruFocus' analysis, Certara stock appears to be undervalued.
The current stock price of $6.29 is trading 53.1% below its estimated GF Value™ of $13.40.
GuruFocus considers Certara to be Possible Value Trap.
Key valuation signals for CERT:
5-Year RORE %: 3.97
GF Value™: $13.40 vs. price of $6.29 (53.1% below fair value)
Industry Position: 39.5% above the Healthcare Providers & Services median (#248 of 508)
No single metric tells the full story. See the CERT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Certara Inc accelerates medicines to patients using biosimulation software and technology to transform traditional drug discovery and development. It provides modeling and simulation, regulatory science, and assessment software and services to help clients reduce clinical trials, accelerate regulatory approval, and increase patient access to medicines. The company has its business presence in the Americas, which is also its key revenue-generating market, EMEA, and the Asia Pacific region.
54GF Score
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