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.
Medondo Holding AG's 5-Year RORE % for the quarter that ended in Dec. 2025 was 14.75%.
The industry rank for Medondo Holding AG's 5-Year RORE % or its related term are showing as below:
FRA:AMI's 5-Year RORE % is ranked better than 65.39% of 2213
companies
in the Software industry
Industry Median: 2.52
vs FRA:AMI: 14.75
Medondo Holding AG (FRA:AMI) 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.
Medondo Holding AG 5-Year RORE % Related Terms
Medondo Holding AG 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Medondo Holding AG'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:AMI vs IBM, ACN, FISV: 5-Year RORE % Comparison
For the Information Technology Services subindustry, Medondo Holding AG'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.
Medondo Holding AG 5-Year RORE % vs Software Industry
For the Software industry and Technology sector, Medondo Holding AG's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Medondo Holding AG'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 Dec. 2025 and 5-year before.
Medondo Holding AG (FRA:AMI) has a 5-Year RORE % of 14.75 as of Dec. 2025. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Medondo Holding AG and its competitors. According to the industry distribution chart, Medondo Holding AG ranks #766 out of 2213 companies in the Software industry, placing it in the top 34.6%.
Is Medondo Holding AG's 5-Year RORE % too high?
Medondo Holding AG's current 5-Year RORE % is 14.75. The Software industry median 5-Year RORE % is 2.52. Medondo Holding AG's value of 14.75 is 485.3% above this industry median. Based on the distribution chart, Medondo Holding AG ranks #766 out of 2213 companies in the Software industry, which is above the industry midpoint. Overall, Medondo Holding AG has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Medondo Holding AG's 5-Year RORE % compare to IBM and ACN?
According to the Software industry distribution chart, Medondo Holding AG ranks #766 out of 2213 companies for 5-Year RORE %. This puts Medondo Holding AG in the upper half of its industry. The industry median 5-Year RORE % is 2.52. Medondo Holding AG's value of 14.75 is 485.3% 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 Software company?
The median 5-Year RORE % among Software companies is 2.52, based on 2,213 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. Medondo Holding AG's current 5-Year RORE % of 14.75 is 485.3% 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 Medondo Holding AG and its competitors. For the Software industry, the median 5-Year RORE % is 2.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Medondo Holding AG's current 5-Year RORE % is 14.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Medondo Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Medondo Holding AG (FRA:AMI) is currently considered Possible Value Trap. The stock's GF Value™ is €0.42, compared to a current price of €0.13 — trading 69.3% below its estimated fair value. The current 5-Year RORE % is 14.75 and 485.3% above the Software industry median of 2.52. Medondo Holding AG's overall GF Score™ is 43/100 with 8 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 Medondo Holding AG (FRA:AMI), the current 5-Year RORE % is 14.75 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 Medondo Holding AG (FRA:AMI) Overvalued in 2026?
Based on GuruFocus' analysis, Medondo Holding AG stock appears to be undervalued.
The current stock price of €0.13 is trading 69.3% below its estimated GF Value™ of €0.42.
GuruFocus considers Medondo Holding AG to be Possible Value Trap.
Key valuation signals for FRA:AMI:
5-Year RORE %: 14.75
GF Value™: €0.42 vs. price of €0.13 (69.3% below fair value)
Industry Position: 485.3% above the Software median (#766 of 2213)
No single metric tells the full story. See the FRA:AMI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Medondo Holding AG is a management holding company based in Germany. Along with its subsidiaries, the company is involved in the provision of integrated, cloud-based software solutions for medical specialties, with a particular focus on secure and efficient patient communication. The group offers a cloud-based, integrated practice management software, Medondo Manager, which digitizes the different processes of medical practice. The software is provided to clients on a subscription-based model and features various capabilities, including a dedicated portal for each patient, an online appointment calendar, digital anamnesis, digital self-check-in, digital documents, and the generation of digital invoices, among other features.
43GF Score
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