LegrandMEX:LR 84 5-Year RORE % is 8.96 as of Mar. 2026. GuruFocus rates MEX:LR with a GF Score™ of 84/100 and a GF Value™ of MXN1,920.26 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,665 Industrial Products companies, Legrand ranks better than 59.81% 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.
Legrand's 5-Year RORE % for the quarter that ended in Mar. 2026 was 8.96%.
The industry rank for Legrand's 5-Year RORE % or its related term are showing as below:
MEX:LR's 5-Year RORE % is ranked better than 59.81% of 2665
companies
in the Industrial Products industry
Industry Median: 4.91
vs MEX:LR: 8.96
Legrand (MEX:LR) 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.
Legrand 5-Year RORE % Related Terms
Legrand 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Legrand'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 Electrical Equipment & Parts subindustry, Legrand'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.
Legrand 5-Year RORE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Legrand's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Legrand'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.
Legrand (MEX:LR) has a 5-Year RORE % of 8.96 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 Legrand and its competitors. According to the industry distribution chart, Legrand ranks #1071 out of 2665 companies in the Industrial Products industry, placing it in the top 40.2%.
Is Legrand's 5-Year RORE % too high?
Legrand's current 5-Year RORE % is 8.96. The Industrial Products industry median 5-Year RORE % is 4.91. Legrand's value of 8.96 is 82.5% above this industry median. Based on the distribution chart, Legrand ranks #1071 out of 2665 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Legrand has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Legrand's 5-Year RORE % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Legrand ranks #1071 out of 2665 companies for 5-Year RORE %. This puts Legrand in the upper half of its industry. The industry median 5-Year RORE % is 4.91. Legrand's value of 8.96 is 82.5% 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 an Industrial Products company?
The median 5-Year RORE % among Industrial Products companies is 4.91, based on 2,665 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. Legrand's current 5-Year RORE % of 8.96 is 82.5% 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 Legrand and its competitors. For the Industrial Products industry, the median 5-Year RORE % is 4.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Legrand's current 5-Year RORE % is 8.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Legrand stock overvalued right now?
Based on GuruFocus' analysis, Legrand (MEX:LR) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN1,920.26, compared to a current price of MXN3,065.30 — trading 59.6% above its estimated fair value. The current 5-Year RORE % is 8.96 and 82.5% above the Industrial Products industry median of 4.91. Legrand's overall GF Score™ is 84/100 with 4 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 Legrand (MEX:LR), the current 5-Year RORE % is 8.96 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 Legrand (MEX:LR) Overvalued in 2026?
Based on GuruFocus' analysis, Legrand stock appears to be overvalued.
The current stock price of MXN3,065.30 is trading 59.6% above its estimated GF Value™ of MXN1,920.26.
GuruFocus considers Legrand to be Significantly Overvalued.
Key valuation signals for MEX:LR:
5-Year RORE %: 8.96
GF Value™: MXN1,920.26 vs. price of MXN3,065.30 (59.6% above fair value)
Industry Position: 82.5% above the Industrial Products median (#1071 of 2665)
No single metric tells the full story. See the MEX:LR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Legrand is a global manufacturer of low-voltage electrical components, which are mostly used in residential (40%) and commercial (40%) buildings, as well as data centers. Its products include wiring devices, cable management, lighting, and audio visual equipment, sold under approximately 80 brands across 180 countries. Its products are sold primarily through specialist distributors that subsequently sell to installers/electricians. Legrand is a major supplier to global electrical equipment distributors. North America and Europe each account for 40% of group sales.
84GF Score
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