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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.
Faes Farma's 5-Year RORE % for the quarter that ended in Dec. 2025 was -0.70%.
The industry rank for Faes Farma's 5-Year RORE % or its related term are showing as below:
XMAD:FAE's 5-Year RORE % is ranked worse than 54.1% of 878
companies
in the Drug Manufacturers industry
Industry Median: 1.35
vs XMAD:FAE: -0.70
Faes Farma (XMAD:FAE) 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.
Faes Farma 5-Year RORE % Related Terms
Faes Farma 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Faes Farma'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.
XMAD:FAE vs ZTS, UTHR, VTRS: 5-Year RORE % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Faes Farma'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.
Faes Farma 5-Year RORE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Faes Farma's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Faes Farma'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.
Faes Farma (XMAD:FAE) has a 5-Year RORE % of -0.70 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 Faes Farma and its competitors. According to the industry distribution chart, Faes Farma ranks #475 out of 878 companies in the Drug Manufacturers industry, placing it in the top 54.1%.
Is Faes Farma's 5-Year RORE % too high?
Faes Farma's current 5-Year RORE % is -0.70. Based on the distribution chart, Faes Farma ranks #475 out of 878 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Faes Farma has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Faes Farma's 5-Year RORE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Faes Farma ranks #475 out of 878 companies for 5-Year RORE %. This places Faes Farma in the lower half of its industry. The industry median 5-Year RORE % is 1.35. 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 Drug Manufacturers company?
The median 5-Year RORE % among Drug Manufacturers companies is 1.35, based on 878 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 Faes Farma and its competitors. For the Drug Manufacturers industry, the median 5-Year RORE % is 1.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Faes Farma's current 5-Year RORE % is -0.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Faes Farma stock overvalued right now?
Based on GuruFocus' analysis, Faes Farma (XMAD:FAE) is currently considered Modestly Undervalued. The stock's GF Value™ is €5.18, compared to a current price of €4.35 — trading 16.1% below its estimated fair value. The current 5-Year RORE % is -0.70. Faes Farma's overall GF Score™ is 93/100 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 Faes Farma (XMAD:FAE), the current 5-Year RORE % is -0.70 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 Faes Farma (XMAD:FAE) Overvalued in 2026?
Based on GuruFocus' analysis, Faes Farma stock appears to be undervalued.
The current stock price of €4.35 is trading 16.1% below its estimated GF Value™ of €5.18.
GuruFocus considers Faes Farma to be Modestly Undervalued.
Key valuation signals for XMAD:FAE:
5-Year RORE %: -0.70
GF Value™: €5.18 vs. price of €4.35 (16.1% below fair value)
No single metric tells the full story. See the XMAD:FAE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Faes Farma SA purpose is manufacturing and selling all kinds of chemical and pharmaceutical products, foodstuffs, cosmetics, dietetics and medicinal plants, as well as acquiring, purchasing, disposing of, investing in, holding, using, managing, administering, marketing and leasing corporations, securities and real estate, patents, trademarks and registered brands and equity interests. It is mainly engaged in the manufacture and sale of pharmaceutical products, as well as in the manufacture and sale of animal nutrition and health products. Its segments are Pharmaceutical and healthcare specialities, Animal nutrition and health, and Other segments. It generates majority of revenue from Pharmaceutical and healthcare specialities. It operates mainly in domestic and international markets.
93GF 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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