AAC Technologies HoldingsAACAY +0.53%92 ROE % is 13.87% as of Dec. 2025, which is 48% above its 10-year median of 9.40. GuruFocus rates AACAY with a GF Score™ of 92/100 and a GF Value™ of $5.86 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,423 Hardware companies, AAC Technologies Holdings ranks better than 72.97% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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 Communication Equipment subindustry, AAC Technologies Holdings's ROE %, along with its competitors' market caps and ROE % 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.
AAC Technologies Holdings ROE % vs Hardware Industry
For the Hardware industry and Technology sector, AAC Technologies Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where AAC Technologies Holdings's ROE % 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 annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
AAC Technologies Holdings (AACAY) has a ROE % of 13.87% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on AAC Technologies Holdings and its competitors. This is 48% above median its historical median of 9.40. Over the past decade, AAC Technologies Holdings' ROE % has ranged from 3.37 to 34.38. According to the industry distribution chart, AAC Technologies Holdings ranks #655 out of 2423 companies in the Hardware industry, placing it in the top 27%.
Is AAC Technologies Holdings' ROE % too high?
AAC Technologies Holdings' current ROE % of 13.87% is 48% above median its 10-year median of 9.40. Over the past 10 years, this metric has ranged from a low of 3.37 to a high of 34.38. The Hardware industry median ROE % is 4.61. AAC Technologies Holdings' value of 13.87% is 200.9% above this industry median. Based on the distribution chart, AAC Technologies Holdings ranks #655 out of 2423 companies in the Hardware industry, which is above the industry midpoint. Overall, AAC Technologies Holdings has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AAC Technologies Holdings' ROE % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, AAC Technologies Holdings ranks #655 out of 2423 companies for ROE %. This puts AAC Technologies Holdings in the upper half of its industry. The industry median ROE % is 4.61. AAC Technologies Holdings' value of 13.87% is 200.9% above this benchmark. Historically, AAC Technologies Holdings' own ROE % has ranged from 3.37 to 34.38 over the past decade. While the company's 10-year median is 9.40 vs. the industry median of 4.61, AAC Technologies Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Hardware company?
The median ROE % among Hardware companies is 4.61, based on 2,423 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AAC Technologies Holdings's current ROE % of 13.87% is 200.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on AAC Technologies Holdings and its competitors. For the Hardware industry, the median ROE % is 4.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAC Technologies Holdings's current ROE % is 13.87%, which is 48% above median its own 10-year median of 9.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AAC Technologies Holdings stock overvalued right now?
Based on GuruFocus' analysis, AAC Technologies Holdings (AACAY) is currently considered Fairly Valued. The stock's GF Value™ is $5.86, compared to a current price of $5.85 — trading 0.2% below its estimated fair value. The current ROE % is 13.87%, which is 48% above median its 10-year median of 9.40 and 200.9% above the Hardware industry median of 4.61. AAC Technologies Holdings' overall GF Score™ is 92/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For AAC Technologies Holdings (AACAY), the current ROE % is 13.87% 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 AAC Technologies Holdings (AACAY) Overvalued in 2026?
Based on GuruFocus' analysis, AAC Technologies Holdings stock appears to be undervalued.
The current stock price of $5.85 is trading 0.2% below its estimated GF Value™ of $5.86.
GuruFocus considers AAC Technologies Holdings to be Fairly Valued.
Key valuation signals for AACAY:
ROE %: 13.87% (48% above median its 10-year median of 9.40)
GF Value™: $5.86 vs. price of $5.85 (0.2% below fair value)
Industry Position: 200.9% above the Hardware median (#655 of 2423)
No single metric tells the full story. See the AACAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AAC Technologies is one of the world's largest manufacturers of miniature acoustic components, such as speakers and receivers, primarily for smartphones. Founded in 1993, the company has since expanded into the production of other handset components, such as electromagnetic drives (haptics), precision mechanical, lenses and camera modules, sensors, and MEMS microphones. AAC is headquartered in Shenzhen, China, and runs factories in China, Vietnam, Czechia, and Malaysia. It employed 44,181 people as at June 30, 2025.
92GF Score
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