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.
Circle SpA's 5-Year RORE % for the quarter that ended in Dec. 2025 was 29.05%.
The industry rank for Circle SpA's 5-Year RORE % or its related term are showing as below:
MIL:CIRC's 5-Year RORE % is ranked better than 77.41% of 2209
companies
in the Software industry
Industry Median: 2.51
vs MIL:CIRC: 29.05
Circle SpA (MIL:CIRC) 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.
Circle SpA 5-Year RORE % Related Terms
Circle SpA 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Circle 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.
MIL:CIRC vs IBM, ACN, FISV: 5-Year RORE % Comparison
For the Information Technology Services subindustry, Circle 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.
Circle SpA 5-Year RORE % vs Software Industry
For the Software industry and Technology sector, Circle SpA's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Circle 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 Dec. 2025 and 5-year before.
Circle SpA (MIL:CIRC) has a 5-Year RORE % of 29.05 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 Circle SpA and its competitors. According to the industry distribution chart, Circle SpA ranks #499 out of 2209 companies in the Software industry, placing it in the top 22.6%.
Is Circle SpA's 5-Year RORE % too high?
Circle SpA's current 5-Year RORE % is 29.05. The Software industry median 5-Year RORE % is 2.51. Circle SpA's value of 29.05 is 1057.4% above this industry median. Based on the distribution chart, Circle SpA ranks #499 out of 2209 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Circle SpA has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Circle SpA's 5-Year RORE % compare to IBM and ACN?
According to the Software industry distribution chart, Circle SpA ranks #499 out of 2209 companies for 5-Year RORE %. This places Circle SpA in the top 23% of its industry — outperforming the majority of peers. The industry median 5-Year RORE % is 2.51. Circle SpA's value of 29.05 is 1057.4% 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 2.51, based on 2,209 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. Circle SpA's current 5-Year RORE % of 29.05 is 1057.4% 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 Circle SpA and its competitors. For the Software industry, the median 5-Year RORE % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Circle SpA's current 5-Year RORE % is 29.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Circle SpA stock overvalued right now?
Based on GuruFocus' analysis, Circle SpA (MIL:CIRC) is currently considered Modestly Overvalued. The stock's GF Value™ is €12.24, compared to a current price of €13.70 — trading 11.9% above its estimated fair value. The current 5-Year RORE % is 29.05 and 1057.4% above the Software industry median of 2.51. Circle SpA's overall GF Score™ is 83/100 with 7 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 Circle SpA (MIL:CIRC), the current 5-Year RORE % is 29.05 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 Circle SpA (MIL:CIRC) Overvalued in 2026?
Based on GuruFocus' analysis, Circle SpA stock appears to be overvalued.
The current stock price of €13.70 is trading 11.9% above its estimated GF Value™ of €12.24.
GuruFocus considers Circle SpA to be Modestly Overvalued.
Key valuation signals for MIL:CIRC:
5-Year RORE %: 29.05
GF Value™: €12.24 vs. price of €13.70 (11.9% above fair value)
Industry Position: 1057.4% above the Software median (#499 of 2209)
No single metric tells the full story. See the MIL:CIRC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Circle SpA is engaged in providing consulting services, technological solutions, and digital marketing services to companies operating predominantly in the logistics and transportation sectors. It provides strategic consulting services in the fields of port management, logistics, and transport, and also develops software solutions to optimize flow management and improve logistics processes. The company's service offerings in the digital marketing sector include; services for the analysis, identification, and use of multi-channel communication tools for the implementation of digital marketing strategies.
83GF 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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