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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.
Nihon Falcom's 5-Year RORE % for the quarter that ended in Mar. 2026 was 14.75%.
The industry rank for Nihon Falcom's 5-Year RORE % or its related term are showing as below:
TSE:3723's 5-Year RORE % is ranked better than 62.24% of 490
companies
in the Interactive Media industry
Industry Median: 4.21
vs TSE:3723: 14.75
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.
Nihon Falcom 5-Year RORE % Related Terms
Nihon Falcom 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Nihon Falcom'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.
TSE:3723 vs NTES, EA, TTWO: 5-Year RORE % Comparison
For the Electronic Gaming & Multimedia subindustry, Nihon Falcom'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.
Nihon Falcom 5-Year RORE % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Nihon Falcom's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Nihon Falcom'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.
Nihon Falcom (TSE:3723) has a 5-Year RORE % of 14.75 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 Nihon Falcom and its competitors. According to the industry distribution chart, Nihon Falcom ranks #185 out of 490 companies in the Interactive Media industry, placing it in the top 37.8%.
Is Nihon Falcom's 5-Year RORE % too high?
Nihon Falcom's current 5-Year RORE % is 14.75. The Interactive Media industry median 5-Year RORE % is 4.21. Nihon Falcom's value of 14.75 is 250.4% above this industry median. Based on the distribution chart, Nihon Falcom ranks #185 out of 490 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Nihon Falcom has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Falcom's 5-Year RORE % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Nihon Falcom ranks #185 out of 490 companies for 5-Year RORE %. This puts Nihon Falcom in the upper half of its industry. The industry median 5-Year RORE % is 4.21. Nihon Falcom's value of 14.75 is 250.4% 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 an Interactive Media company?
The median 5-Year RORE % among Interactive Media companies is 4.21, based on 490 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. Nihon Falcom's current 5-Year RORE % of 14.75 is 250.4% 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 Nihon Falcom and its competitors. For the Interactive Media industry, the median 5-Year RORE % is 4.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Falcom's current 5-Year RORE % is 14.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Falcom stock overvalued right now?
Based on GuruFocus' analysis, Nihon Falcom (TSE:3723) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,730.49, compared to a current price of 円2,695.00 — trading 55.7% above its estimated fair value. The current 5-Year RORE % is 14.75 and 250.4% above the Interactive Media industry median of 4.21. Nihon Falcom's overall GF Score™ is 69/100 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 Nihon Falcom (TSE:3723), the current 5-Year RORE % is 14.75 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 Nihon Falcom (TSE:3723) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Falcom stock appears to be overvalued.
The current stock price of 円2,695.00 is trading 55.7% above its estimated GF Value™ of 円1,730.49.
GuruFocus considers Nihon Falcom to be Significantly Overvalued.
Key valuation signals for TSE:3723:
5-Year RORE %: 14.75
GF Value™: 円1,730.49 vs. price of 円2,695.00 (55.7% above fair value)
Industry Position: 250.4% above the Interactive Media median (#185 of 490)
No single metric tells the full story. See the TSE:3723 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Falcom Corp is a Japan-based company engages in the development and sale of game software. It produces music titles/video titles; plans game software; sells game software and related products; and provides various licenses. It offers role-playing game software and Japanese version of overseas game software as well as home-use game software, among others.
69GF Score
Get the complete analysis for TSE:3723
5-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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