Ratos ABFRA:RAZC +0.71%41 5-Year RORE % is 14.17 as of Mar. 2026. GuruFocus rates FRA:RAZC with a GF Score™ of 41/100 and a GF Value™ of €2.01 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,496 Construction companies, Ratos AB ranks better than 67.25% 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.
Ratos AB's 5-Year RORE % for the quarter that ended in Mar. 2026 was 14.17%.
The industry rank for Ratos AB's 5-Year RORE % or its related term are showing as below:
FRA:RAZC's 5-Year RORE % is ranked better than 67.25% of 1496
companies
in the Construction industry
Industry Median: 6.2
vs FRA:RAZC: 14.17
Ratos AB (FRA:RAZC) 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.
Ratos AB 5-Year RORE % Related Terms
Ratos AB 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Ratos AB'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:RAZC vs PWR, FIX, EME: 5-Year RORE % Comparison
For the Engineering & Construction subindustry, Ratos AB'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.
Ratos AB 5-Year RORE % vs Construction Industry
For the Construction industry and Industrials sector, Ratos AB's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Ratos AB'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.
Ratos AB (FRA:RAZC) has a 5-Year RORE % of 14.17 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 Ratos AB and its competitors. According to the industry distribution chart, Ratos AB ranks #490 out of 1496 companies in the Construction industry, placing it in the top 32.8%.
Is Ratos AB's 5-Year RORE % too high?
Ratos AB's current 5-Year RORE % is 14.17. The Construction industry median 5-Year RORE % is 6.20. Ratos AB's value of 14.17 is 128.5% above this industry median. Based on the distribution chart, Ratos AB ranks #490 out of 1496 companies in the Construction industry, which is above the industry midpoint. Overall, Ratos AB has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ratos AB's 5-Year RORE % compare to PWR and FIX?
According to the Construction industry distribution chart, Ratos AB ranks #490 out of 1496 companies for 5-Year RORE %. This puts Ratos AB in the upper half of its industry. The industry median 5-Year RORE % is 6.20. Ratos AB's value of 14.17 is 128.5% 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 Construction company?
The median 5-Year RORE % among Construction companies is 6.20, based on 1,496 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. Ratos AB's current 5-Year RORE % of 14.17 is 128.5% 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 Ratos AB and its competitors. For the Construction industry, the median 5-Year RORE % is 6.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ratos AB's current 5-Year RORE % is 14.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ratos AB stock overvalued right now?
Based on GuruFocus' analysis, Ratos AB (FRA:RAZC) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.01, compared to a current price of €2.83 — trading 40.8% above its estimated fair value. The current 5-Year RORE % is 14.17 and 128.5% above the Construction industry median of 6.20. Ratos AB's overall GF Score™ is 41/100 with 3 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 Ratos AB (FRA:RAZC), the current 5-Year RORE % is 14.17 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 Ratos AB (FRA:RAZC) Overvalued in 2026?
Based on GuruFocus' analysis, Ratos AB stock appears to be overvalued.
The current stock price of €2.83 is trading 40.8% above its estimated GF Value™ of €2.01.
GuruFocus considers Ratos AB to be Significantly Overvalued.
Key valuation signals for FRA:RAZC:
5-Year RORE %: 14.17
GF Value™: €2.01 vs. price of €2.83 (40.8% above fair value)
Industry Position: 128.5% above the Construction median (#490 of 1496)
No single metric tells the full story. See the FRA:RAZC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ratos AB is an investment company that owns and develops unlisted medium-and small-sized Nordic companies. The company focuses on technological and infrastructure solutions and comprises two business segment; Construction & Services and Consumer. Majority of the revenue is generated from its Construction & Services segment which predominantly includes maintenance of infrastructure within railway, road, energy solutions, and construction of new critical buildings such as hospitals, schools, police stations and governmental buildings in the Nordics. Geographically, the company generates majority of its revenue from Norway and rest from Sweden and other regions.
41GF Score
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