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.
Rai Way SpA's 5-Year RORE % for the quarter that ended in Mar. 2026 was 78.57%.
The industry rank for Rai Way SpA's 5-Year RORE % or its related term are showing as below:
FRA:4RW's 5-Year RORE % is ranked better than 88.63% of 1495
companies
in the Construction industry
Industry Median: 5.97
vs FRA:4RW: 78.57
Rai Way SpA (FRA:4RW) 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.
Rai Way SpA 5-Year RORE % Related Terms
Rai Way SpA 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Rai Way SpA'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.
FRA:4RW vs PWR, FIX, EME: 5-Year RORE % Comparison
For the Engineering & Construction subindustry, Rai Way SpA'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.
Rai Way SpA 5-Year RORE % vs Construction Industry
For the Construction industry and Industrials sector, Rai Way SpA's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Rai Way SpA'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.
Rai Way SpA (FRA:4RW) has a 5-Year RORE % of 78.57 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 Rai Way SpA and its competitors. According to the industry distribution chart, Rai Way SpA ranks #170 out of 1495 companies in the Construction industry, placing it in the top 11.4%.
Is Rai Way SpA's 5-Year RORE % too high?
Rai Way SpA's current 5-Year RORE % is 78.57. The Construction industry median 5-Year RORE % is 5.97. Rai Way SpA's value of 78.57 is 1216.1% above this industry median. Based on the distribution chart, Rai Way SpA ranks #170 out of 1495 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Rai Way SpA has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rai Way SpA's 5-Year RORE % compare to PWR and FIX?
According to the Construction industry distribution chart, Rai Way SpA ranks #170 out of 1495 companies for 5-Year RORE %. This places Rai Way SpA in the top 11% of its industry — outperforming the majority of peers. The industry median 5-Year RORE % is 5.97. Rai Way SpA's value of 78.57 is 1216.1% 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 5-Year RORE % for a Construction company?
The median 5-Year RORE % among Construction companies is 5.97, based on 1,495 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. Rai Way SpA's current 5-Year RORE % of 78.57 is 1216.1% 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 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 Rai Way SpA and its competitors. For the Construction industry, the median 5-Year RORE % is 5.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rai Way SpA's current 5-Year RORE % is 78.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rai Way SpA stock overvalued right now?
Based on GuruFocus' analysis, Rai Way SpA (FRA:4RW) is currently considered Modestly Undervalued. The stock's GF Value™ is €5.61, compared to a current price of €4.50 — trading 19.8% below its estimated fair value. The current 5-Year RORE % is 78.57 and 1216.1% above the Construction industry median of 5.97. Rai Way SpA's overall GF Score™ is 88/100 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 Rai Way SpA (FRA:4RW), the current 5-Year RORE % is 78.57 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 Rai Way SpA (FRA:4RW) Overvalued in 2026?
Based on GuruFocus' analysis, Rai Way SpA stock appears to be undervalued.
The current stock price of €4.50 is trading 19.8% below its estimated GF Value™ of €5.61.
GuruFocus considers Rai Way SpA to be Modestly Undervalued.
Key valuation signals for FRA:4RW:
5-Year RORE %: 78.57
GF Value™: €5.61 vs. price of €4.50 (19.8% below fair value)
Industry Position: 1216.1% above the Construction median (#170 of 1495)
No single metric tells the full story. See the FRA:4RW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rai Way SpA is an Italy-based company which operates activity of signal transmission and a broadcasting network of RAI group. The services provided by the company include broadcasting services, transmission services, tower Rental Services and network Services. The company serves its customer by providing implementation and management of the main broadcasting processes which include analog and digital, terrestrial and satellite, for audio, video and data signals, television signals through connecting network. The company allows its clients to have the availability of tower and civil infrastructures to install radio transmitters, planning, construction, installation, management of electronic and telecommunications networks. It provides services throughout Italy.
88GF 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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