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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.
Bread Financial Holdings's 5-Year RORE % for the quarter that ended in Mar. 2026 was -4.82%.
The industry rank for Bread Financial Holdings's 5-Year RORE % or its related term are showing as below:
LTS:0HCR's 5-Year RORE % is ranked worse than 63.66% of 487
companies
in the Credit Services industry
Industry Median: 7.56
vs LTS:0HCR: -4.82
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.
Bread Financial Holdings 5-Year RORE % Related Terms
Bread Financial Holdings 5-Year RORE % Historical Data
* 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.
LTS:0HCR vs SLM, NNI, UPST: 5-Year RORE % Comparison
For the Credit Services subindustry, Bread Financial Holdings'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.
Bread Financial Holdings 5-Year RORE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Bread Financial Holdings's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Bread Financial Holdings'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.
Bread Financial Holdings (LTS:0HCR) has a 5-Year RORE % of -4.82 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 Bread Financial Holdings and its competitors. According to the industry distribution chart, Bread Financial Holdings ranks #310 out of 487 companies in the Credit Services industry, placing it in the top 63.7%.
Is Bread Financial Holdings' 5-Year RORE % too high?
Bread Financial Holdings' current 5-Year RORE % is -4.82. Based on the distribution chart, Bread Financial Holdings ranks #310 out of 487 companies in the Credit Services industry, which is below the industry midpoint. Overall, Bread Financial Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bread Financial Holdings' 5-Year RORE % compare to SLM and NNI?
According to the Credit Services industry distribution chart, Bread Financial Holdings ranks #310 out of 487 companies for 5-Year RORE %. This places Bread Financial Holdings in the lower half of its industry. The industry median 5-Year RORE % is 7.56. 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 Credit Services company?
The median 5-Year RORE % among Credit Services companies is 7.56, based on 487 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. 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 Bread Financial Holdings and its competitors. For the Credit Services industry, the median 5-Year RORE % is 7.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bread Financial Holdings's current 5-Year RORE % is -4.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bread Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Bread Financial Holdings (LTS:0HCR) is currently considered Significantly Overvalued. The stock's GF Value™ is $57.89, compared to a current price of $98.88 — trading 70.8% above its estimated fair value. The current 5-Year RORE % is -4.82. Bread Financial Holdings' overall GF Score™ is 62/100 with 5 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 Bread Financial Holdings (LTS:0HCR), the current 5-Year RORE % is -4.82 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 Bread Financial Holdings (LTS:0HCR) Overvalued in 2026?
Based on GuruFocus' analysis, Bread Financial Holdings stock appears to be overvalued.
The current stock price of $98.88 is trading 70.8% above its estimated GF Value™ of $57.89.
GuruFocus considers Bread Financial Holdings to be Significantly Overvalued.
Key valuation signals for LTS:0HCR:
5-Year RORE %: -4.82
GF Value™: $57.89 vs. price of $98.88 (70.8% above fair value)
No single metric tells the full story. See the LTS:0HCR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formed by a combination of JCPenney's credit card processing unit and The Limited's credit card bank business, Bread Financial is a provider of private-label and co-branded credit cards, loyalty programs, and marketing services. The company's most financially significant unit is its credit card business that partners with retailers to jointly market Bread's credit cards to their customers. The company also retains a minority interest in spun-off LoyaltyOne, which operates the largest airline miles loyalty program in Canada and offers marketing services to grocery chains in Europe and Asia.
62GF Score
Get the complete analysis for LTS:0HCR
5-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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