Embark Early EducationASX:EVO 25 ROE % is 13.93% as of Dec. 2025, which is 169% above its 10-year median of 5.18. GuruFocus rates ASX:EVO with a GF Score™ of 25/100 and a GF Value™ of A$0.90 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 263 Education companies, Embark Early Education ranks better than 60.46% on this metric.
The historical rank and industry rank for Embark Early Education's ROE % or its related term are showing as below:
ASX:EVO'
s ROE % Range Over the Past 10 Years
Min: -99.84 Med: 5.18 Max: 11.15
Current: 11.15
During the past 10 years, Embark Early Education's highest ROE % was 11.15%. The lowest was -99.84%. And the median was 5.18%.
ASX:EVO's ROE % is ranked better than 60.46% of 263
companies
in the Education industry
Industry Median: 7.31
vs ASX:EVO: 11.15
Embark Early Education (ASX:EVO) ROE % Explanation
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 Education & Training Services subindustry, Embark Early Education'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.
Embark Early Education ROE % vs Education Industry
For the Education industry and Consumer Defensive sector, Embark Early Education's ROE % distribution charts can be found below:
* The bar in red indicates where Embark Early Education'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.
Embark Early Education (ASX:EVO) has a ROE % of 13.93% 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 Embark Early Education and its competitors. This is 169% above median its historical median of 5.18. According to the industry distribution chart, Embark Early Education ranks #104 out of 263 companies in the Education industry, placing it in the top 39.5%.
Is Embark Early Education's ROE % too high?
Embark Early Education's current ROE % of 13.93% is 169% above median its 10-year median of 5.18. The Education industry median ROE % is 7.31. Embark Early Education's value of 13.93% is 90.6% above this industry median. Based on the distribution chart, Embark Early Education ranks #104 out of 263 companies in the Education industry, which is above the industry midpoint. Overall, Embark Early Education has a GF Score™ of 25/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Embark Early Education's ROE % compare to EDU and TAL?
According to the Education industry distribution chart, Embark Early Education ranks #104 out of 263 companies for ROE %. This puts Embark Early Education in the upper half of its industry. The industry median ROE % is 7.31. Embark Early Education's value of 13.93% is 90.6% above this benchmark. While the company's 10-year median is 5.18 vs. the industry median of 7.31, Embark Early Education 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 an Education company?
The median ROE % among Education companies is 7.31, based on 263 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. Embark Early Education's current ROE % of 13.93% is 90.6% 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 Embark Early Education and its competitors. For the Education industry, the median ROE % is 7.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Embark Early Education's current ROE % is 13.93%, which is 169% above median its own 10-year median of 5.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Embark Early Education stock overvalued right now?
Based on GuruFocus' analysis, Embark Early Education (ASX:EVO) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.90, compared to a current price of A$0.40 — trading 55.6% below its estimated fair value. The current ROE % is 13.93%, which is 169% above median its 10-year median of 5.18 and 90.6% above the Education industry median of 7.31. Embark Early Education's overall GF Score™ is 25/100 with 7 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 Embark Early Education (ASX:EVO), the current ROE % is 13.93% 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 Embark Early Education (ASX:EVO) Overvalued in 2026?
Based on GuruFocus' analysis, Embark Early Education stock appears to be undervalued.
The current stock price of A$0.40 is trading 55.6% below its estimated GF Value™ of A$0.90.
GuruFocus considers Embark Early Education to be Possible Value Trap.
Key valuation signals for ASX:EVO:
ROE %: 13.93% (169% above median its 10-year median of 5.18)
GF Value™: A$0.90 vs. price of A$0.40 (55.6% below fair value)
Industry Position: 90.6% above the Education median (#104 of 263)
No single metric tells the full story. See the ASX:EVO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Embark Early Education Ltd is a company that is engaged in the provision and management of an early childhood education service that gives parents and caregivers the option of which service suits their child's learning and care needs. The company is engaged in operation of childcare centres in Australia. The company owns and operates childcare centers. It has centers in Queensland, Victoria, New South Wales, Tasmania and South Australia.
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