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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.
Erie Indemnity Co's 5-Year RORE % for the quarter that ended in Mar. 2026 was 28.38%.
The industry rank for Erie Indemnity Co's 5-Year RORE % or its related term are showing as below:
ERIE's 5-Year RORE % is ranked better than 72.04% of 447
companies
in the Insurance industry
Industry Median: 11.21
vs ERIE: 28.38
Erie Indemnity Co (NAS:ERIE) 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.
Erie Indemnity Co 5-Year RORE % Related Terms
Erie Indemnity Co 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Erie Indemnity Co'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.
For the Insurance Brokers subindustry, Erie Indemnity Co'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.
Erie Indemnity Co 5-Year RORE % vs Insurance Industry
For the Insurance industry and Financial Services sector, Erie Indemnity Co's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Erie Indemnity Co'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.
Erie Indemnity Co (ERIE) has a 5-Year RORE % of 28.38 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 Erie Indemnity Co and its competitors. According to the industry distribution chart, Erie Indemnity Co ranks #125 out of 447 companies in the Insurance industry, placing it in the top 28%.
Is Erie Indemnity Co's 5-Year RORE % too high?
Erie Indemnity Co's current 5-Year RORE % is 28.38. The Insurance industry median 5-Year RORE % is 11.21. Erie Indemnity Co's value of 28.38 is 153.2% above this industry median. Based on the distribution chart, Erie Indemnity Co ranks #125 out of 447 companies in the Insurance industry, which is above the industry midpoint. Overall, Erie Indemnity Co has a GF Score™ of 63/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Erie Indemnity Co's 5-Year RORE % compare to NP and BRO?
According to the Insurance industry distribution chart, Erie Indemnity Co ranks #125 out of 447 companies for 5-Year RORE %. This puts Erie Indemnity Co in the upper half of its industry. The industry median 5-Year RORE % is 11.21. Erie Indemnity Co's value of 28.38 is 153.2% 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 an Insurance company?
The median 5-Year RORE % among Insurance companies is 11.21, based on 447 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. Erie Indemnity Co's current 5-Year RORE % of 28.38 is 153.2% 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 Erie Indemnity Co and its competitors. For the Insurance industry, the median 5-Year RORE % is 11.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Erie Indemnity Co's current 5-Year RORE % is 28.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Erie Indemnity Co stock overvalued right now?
Based on GuruFocus' analysis, Erie Indemnity Co (ERIE) is currently considered Significantly Undervalued. The stock's GF Value™ is $344.35, compared to a current price of $223.55 — trading 35.1% below its estimated fair value. The current 5-Year RORE % is 28.38 and 153.2% above the Insurance industry median of 11.21. Erie Indemnity Co's overall GF Score™ is 63/100 with 1 warning sign 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 Erie Indemnity Co (ERIE), the current 5-Year RORE % is 28.38 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 Erie Indemnity Co (ERIE) Overvalued in 2026?
Based on GuruFocus' analysis, Erie Indemnity Co stock appears to be undervalued.
The current stock price of $223.55 is trading 35.1% below its estimated GF Value™ of $344.35.
GuruFocus considers Erie Indemnity Co to be Significantly Undervalued.
Key valuation signals for ERIE:
5-Year RORE %: 28.38
GF Value™: $344.35 vs. price of $223.55 (35.1% below fair value)
Industry Position: 153.2% above the Insurance median (#125 of 447)
No single metric tells the full story. See the ERIE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Erie Indemnity Co mainly performs services on behalf of the Erie Insurance Exchange relating to sales, underwriting, and issuance of policies. Erie Indemnity's results are tied to the performance of the Insurance Exchange, which principally provides automobile and homeowners insurance for individuals, along with multiperil, workers' compensation, and commercial automobile insurance for its commercial clients. The company operates exclusively in the United States.
63GF Score
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5-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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