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.
Koninklijke Philips NV's 5-Year RORE % for the quarter that ended in Mar. 2026 was 398.27%.
The industry rank for Koninklijke Philips NV's 5-Year RORE % or its related term are showing as below:
RYLPF's 5-Year RORE % is ranked better than 97.17% of 706
companies
in the Medical Devices & Instruments industry
Industry Median: -5.13
vs RYLPF: 398.27
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.
Koninklijke Philips NV 5-Year RORE % Related Terms
Koninklijke Philips NV 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.
For the Medical Devices subindustry, Koninklijke Philips NV'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.
Koninklijke Philips NV 5-Year RORE % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Koninklijke Philips NV's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Koninklijke Philips NV'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.
Koninklijke Philips NV (RYLPF) has a 5-Year RORE % of 398.27 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 Koninklijke Philips NV and its competitors. According to the industry distribution chart, Koninklijke Philips NV ranks #20 out of 706 companies in the Medical Devices & Instruments industry, placing it in the top 2.8%.
Is Koninklijke Philips NV's 5-Year RORE % too high?
Koninklijke Philips NV's current 5-Year RORE % is 398.27. Based on the distribution chart, Koninklijke Philips NV ranks #20 out of 706 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Koninklijke Philips NV has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Koninklijke Philips NV's 5-Year RORE % compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Koninklijke Philips NV ranks #20 out of 706 companies for 5-Year RORE %. This places Koninklijke Philips NV in the top 3% of its industry — outperforming the majority of peers. 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 Medical Devices & Instruments company?
A good 5-Year RORE % depends on the Medical Devices & Instruments industry context. 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 Koninklijke Philips NV and its competitors. Koninklijke Philips NV's current 5-Year RORE % is 398.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Koninklijke Philips NV stock overvalued right now?
Based on GuruFocus' analysis, Koninklijke Philips NV (RYLPF) is currently considered Fairly Valued. The stock's GF Value™ is $26.00, compared to a current price of $28.01 — trading 7.7% above its estimated fair value. The current 5-Year RORE % is 398.27. Koninklijke Philips NV's overall GF Score™ is 70/100 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 Koninklijke Philips NV (RYLPF), the current 5-Year RORE % is 398.27 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 Koninklijke Philips NV (RYLPF) Overvalued in 2026?
Based on GuruFocus' analysis, Koninklijke Philips NV stock appears to be overvalued.
The current stock price of $28.01 is trading 7.7% above its estimated GF Value™ of $26.00.
GuruFocus considers Koninklijke Philips NV to be Fairly Valued.
Key valuation signals for RYLPF:
5-Year RORE %: 398.27
GF Value™: $26.00 vs. price of $28.01 (7.7% above fair value)
No single metric tells the full story. See the RYLPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Koninklijke Philips is a diversified global healthcare company operating in three segments: diagnosis and treatment, connected care, and personal health. Nearly 50% of the company's revenue comes from the diagnosis and treatment segment, which features imaging systems, ultrasound and X-ray equipment, and image-guided therapy solutions. The connected care segment (under 30% of revenue) encompasses monitoring and analytics systems for hospitals, informatics business, and also houses the sleep and respiratory care segment. Personal health business (remainder of revenue) is mainly oral health and personal care product lines, which include electric toothbrushes and men's grooming and personal-care products.
70GF 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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