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Latitude Group HoldingsASX:LFS +1.12%21 ROE % is 9.00% as of Dec. 2025, which is 261% above its 10-year median of 2.49. GuruFocus rates ASX:LFS with a GF Score™ of 21/100. The stock has 1 warning sign investors should review. Among 530 Credit Services companies, Latitude Group Holdings ranks better than 54.53% on this metric.
The historical rank and industry rank for Latitude Group Holdings's ROE % or its related term are showing as below:
ASX:LFS'
s ROE % Range Over the Past 10 Years
Min: -11.63 Med: 2.49 Max: 11.53
Current: 7.71
During the past 6 years, Latitude Group Holdings's highest ROE % was 11.53%. The lowest was -11.63%. And the median was 2.49%.
ASX:LFS's ROE % is ranked better than 54.53% of 530
companies
in the Credit Services industry
Industry Median: 6.64
vs ASX:LFS: 7.71
Latitude Group Holdings (ASX:LFS) 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 Credit Services subindustry, Latitude Group 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.
Latitude Group Holdings ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Latitude Group Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Latitude Group 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.
Latitude Group Holdings (ASX:LFS) has a ROE % of 9.00% 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 Latitude Group Holdings and its competitors. This is 261% above median its historical median of 2.49. According to the industry distribution chart, Latitude Group Holdings ranks #241 out of 530 companies in the Credit Services industry, placing it in the top 45.5%.
Is Latitude Group Holdings' ROE % too high?
Latitude Group Holdings' current ROE % of 9.00% is 261% above median its 10-year median of 2.49. The Credit Services industry median ROE % is 6.64. Latitude Group Holdings' value of 9.00% is 35.5% above this industry median. Based on the distribution chart, Latitude Group Holdings ranks #241 out of 530 companies in the Credit Services industry, which is above the industry midpoint. Overall, Latitude Group Holdings has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Latitude Group Holdings' ROE % compare to V and MA?
According to the Credit Services industry distribution chart, Latitude Group Holdings ranks #241 out of 530 companies for ROE %. This puts Latitude Group Holdings in the upper half of its industry. The industry median ROE % is 6.64. Latitude Group Holdings' value of 9.00% is 35.5% above this benchmark. While the company's 10-year median is 2.49 vs. the industry median of 6.64, Latitude Group 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 Credit Services company?
The median ROE % among Credit Services companies is 6.64, based on 530 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. Latitude Group Holdings's current ROE % of 9.00% is 35.5% 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 Latitude Group Holdings and its competitors. For the Credit Services industry, the median ROE % is 6.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Latitude Group Holdings's current ROE % is 9.00%, which is 261% above median its own 10-year median of 2.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Latitude Group Holdings stock overvalued right now?
Latitude Group Holdings (ASX:LFS) has a current ROE % of 9.00%. The current ROE % is 9.00%, which is 261% above median its 10-year median of 2.49 and 35.5% above the Credit Services industry median of 6.64. Latitude Group Holdings' overall GF Score™ is 21/100 with 1 warning sign 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 Latitude Group Holdings (ASX:LFS), the current ROE % is 9.00% 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.
Latitude Group Holdings Ltd is engaged in the instalments and lending business. Its segments include Australia and New Zealand Pay (A&NZ Pay), Australia and New Zealand Money (A&NZ Money), and Other. The A&NZ Pay segment provides sales finance and credit cards. The A&NZ Money segment offers personal loans and motor loans. The Other segment includes other business activities. It provides payment and finance solutions to merchants and their customers. Customers are provided choice and flexibility, ranging from small everyday purchases to monthly or flexible payment plans for bigger purchases and travel credit cards. These services are offered in Australia, New Zealand, and Asia.
21GF Score
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