HMC CapitalASX:HMC 65 ROE % is 0.70% as of Dec. 2025, which is 88% below its 10-year median of 5.97. GuruFocus rates ASX:HMC with a GF Score™ of 65/100 and a GF Value™ of A$14.14 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 933 REITs companies, HMC Capital ranks worse than 91.1% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. HMC Capital's annualized net income for the quarter that ended in Dec. 2025 was A$11.6 Mil. HMC Capital's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was A$1,653.6 Mil. Therefore, HMC Capital's annualized ROE % for the quarter that ended in Dec. 2025 was 0.70%.
The historical rank and industry rank for HMC Capital's ROE % or its related term are showing as below:
ASX:HMC'
s ROE % Range Over the Past 10 Years
Min: -12.53 Med: 5.97 Max: 10.22
Current: -7.28
During the past 7 years, HMC Capital's highest ROE % was 10.22%. The lowest was -12.53%. And the median was 5.97%.
ASX:HMC's ROE % is ranked worse than 91.1% of 933
companies
in the REITs industry
Industry Median: 6.2
vs ASX:HMC: -7.28
HMC Capital (ASX:HMC) 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.
HMC Capital ROE % Related Terms
HMC Capital ROE % Historical Data
* Premium members only.
The historical data trend for HMC Capital's ROE % 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.
For the REIT - Diversified subindustry, HMC Capital'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.
HMC Capital ROE % vs REITs Industry
For the REITs industry and Real Estate sector, HMC Capital's ROE % distribution charts can be found below:
* The bar in red indicates where HMC Capital'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.
HMC Capital (ASX:HMC) has a ROE % of 0.70% 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 HMC Capital and its competitors. This is 88% below median its historical median of 5.97. According to the industry distribution chart, HMC Capital ranks #850 out of 933 companies in the REITs industry, placing it in the top 91.1%.
Is HMC Capital's ROE % too high?
HMC Capital's current ROE % of 0.70% is 88% below median its 10-year median of 5.97. The REITs industry median ROE % is 6.20. HMC Capital's value of 0.70% is 88.7% below this industry median. Based on the distribution chart, HMC Capital ranks #850 out of 933 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, HMC Capital has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HMC Capital's ROE % compare to VICI and WPC?
According to the REITs industry distribution chart, HMC Capital ranks #850 out of 933 companies for ROE %. This places HMC Capital in the lower half of its industry. The industry median ROE % is 6.20. HMC Capital's value of 0.70% is 88.7% below this benchmark. While the company's 10-year median is 5.97 vs. the industry median of 6.20, HMC Capital has consistently been below 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 REITs company?
The median ROE % among REITs companies is 6.20, based on 933 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. HMC Capital's current ROE % of 0.70% is 88.7% below 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 HMC Capital and its competitors. For the REITs industry, the median ROE % is 6.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HMC Capital's current ROE % is 0.70%, which is 88% below median its own 10-year median of 5.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HMC Capital stock overvalued right now?
Based on GuruFocus' analysis, HMC Capital (ASX:HMC) is currently considered Possible Value Trap. The stock's GF Value™ is A$14.14, compared to a current price of A$2.95 — trading 79.1% below its estimated fair value. The current ROE % is 0.70%, which is 88% below median its 10-year median of 5.97 and 88.7% below the REITs industry median of 6.20. HMC Capital's overall GF Score™ is 65/100 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 HMC Capital (ASX:HMC), the current ROE % 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 HMC Capital (ASX:HMC) Overvalued in 2026?
Based on GuruFocus' analysis, HMC Capital stock appears to be undervalued.
The current stock price of A$2.95 is trading 79.1% below its estimated GF Value™ of A$14.14.
GuruFocus considers HMC Capital to be Possible Value Trap.
Key valuation signals for ASX:HMC:
ROE %: 0.70% (88% below median its 10-year median of 5.97)
GF Value™: A$14.14 vs. price of A$2.95 (79.1% below fair value)
Industry Position: 88.7% below the REITs median (#850 of 933)
No single metric tells the full story. See the ASX:HMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HMC Capital Ltd is a property group focused on ownership, development, and management. The company's operating segment includes Real Estate which comprises of HMC Capital managed HomeCo Daily Needs REIT, HealthCo Healthcare and Wellness REIT, HMC Wholesale Healthcare Fund and the Last Mile Logistics Fund; Private Equity which includes the HMC Capital Partners Fund I, a high conviction strategic stakes fund; and Corporate properties which includes unallocated costs and Capital Solutions activities which includes short term investments undertaken relating to non-HMC managed funds. It generates maximum revenue from the Real Estate segment. The company portfolio comprises mainly retail and services centers.
65GF Score
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