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.
Abbott Laboratories's 5-Year RORE % for the quarter that ended in Mar. 2026 was -10.76%.
The industry rank for Abbott Laboratories's 5-Year RORE % or its related term are showing as below:
XSWX:ABT's 5-Year RORE % is ranked worse than 52.12% of 706
companies
in the Medical Devices & Instruments industry
Industry Median: -5.13
vs XSWX:ABT: -10.76
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.
Abbott Laboratories 5-Year RORE % Related Terms
Abbott Laboratories 5-Year RORE % Historical Data
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The historical data trend for Abbott Laboratories'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.
XSWX:ABT vs SYK, MDT, BSX: 5-Year RORE % Comparison
For the Medical Devices subindustry, Abbott Laboratories'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.
Abbott Laboratories 5-Year RORE % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Abbott Laboratories's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Abbott Laboratories'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.
Abbott Laboratories (XSWX:ABT) has a 5-Year RORE % of -10.76 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 Abbott Laboratories and its competitors. According to the industry distribution chart, Abbott Laboratories ranks #368 out of 706 companies in the Medical Devices & Instruments industry, placing it in the top 52.1%.
Is Abbott Laboratories' 5-Year RORE % too high?
Abbott Laboratories' current 5-Year RORE % is -10.76. Based on the distribution chart, Abbott Laboratories ranks #368 out of 706 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, Abbott Laboratories has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Abbott Laboratories' 5-Year RORE % compare to SYK and MDT?
According to the Medical Devices & Instruments industry distribution chart, Abbott Laboratories ranks #368 out of 706 companies for 5-Year RORE %. This places Abbott Laboratories in the lower half of its industry. 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 Abbott Laboratories and its competitors. Abbott Laboratories's current 5-Year RORE % is -10.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abbott Laboratories stock overvalued right now?
Abbott Laboratories (XSWX:ABT) has a current 5-Year RORE % of -10.76. The stock's GF Value™ is CHF105.05, compared to a current price of CHF74.50 — trading 29.1% below its estimated fair value. The current 5-Year RORE % is -10.76. Abbott Laboratories' overall GF Score™ is 80/100. 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 Abbott Laboratories (XSWX:ABT), the current 5-Year RORE % is -10.76 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 Abbott Laboratories (XSWX:ABT) Overvalued in 2026?
Based on GuruFocus' analysis, Abbott Laboratories stock appears to be undervalued.
The current stock price of CHF74.50 is trading 29.1% below its estimated GF Value™ of CHF105.05.
Key valuation signals for XSWX:ABT:
5-Year RORE %: -10.76
GF Value™: CHF105.05 vs. price of CHF74.50 (29.1% below fair value)
No single metric tells the full story. See the XSWX:ABT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abbott manufactures and markets cardiovascular and diabetes devices, adult and pediatric nutritional products, diagnostic equipment and testing kits, and branded generic drugs. Products include pacemakers, implantable cardioverter defibrillators, neuromodulation devices, coronary stents, catheters, infant formula, nutritional liquids for adults, continuous glucose monitors, and immunoassays and point-of-care diagnostic equipment. Abbott derives roughly 60% of sales outside the United States.
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