Michael Hill InternationalASX:MHJ +3.13%59 ROE % is 24.83% as of Dec. 2025, which is 149% above its 10-year median of 9.97. GuruFocus rates ASX:MHJ with a GF Score™ of 59/100 and a GF Value™ of A$0.57 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,097 Retail - Cyclical companies, Michael Hill International ranks worse than 59.98% on this metric.
The historical rank and industry rank for Michael Hill International's ROE % or its related term are showing as below:
ASX:MHJ'
s ROE % Range Over the Past 10 Years
Min: -0.27 Med: 9.97 Max: 26.1
Current: 4
During the past 13 years, Michael Hill International's highest ROE % was 26.10%. The lowest was -0.27%. And the median was 9.97%.
ASX:MHJ's ROE % is ranked worse than 59.98% of 1097
companies
in the Retail - Cyclical industry
Industry Median: 6.46
vs ASX:MHJ: 4.00
Michael Hill International (ASX:MHJ) 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 Luxury Goods subindustry, Michael Hill International'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.
Michael Hill International ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Michael Hill International's ROE % distribution charts can be found below:
* The bar in red indicates where Michael Hill International'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.
Michael Hill International (ASX:MHJ) has a ROE % of 24.83% 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 Michael Hill International and its competitors. This is 149% above median its historical median of 9.97. According to the industry distribution chart, Michael Hill International ranks #658 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 60%.
Is Michael Hill International's ROE % too high?
Michael Hill International's current ROE % of 24.83% is 149% above median its 10-year median of 9.97. The Retail - Cyclical industry median ROE % is 6.46. Michael Hill International's value of 24.83% is 284.4% above this industry median. Based on the distribution chart, Michael Hill International ranks #658 out of 1097 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Michael Hill International has a GF Score™ of 59/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Michael Hill International's ROE % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Michael Hill International ranks #658 out of 1097 companies for ROE %. This places Michael Hill International in the lower half of its industry. The industry median ROE % is 6.46. Michael Hill International's value of 24.83% is 284.4% above this benchmark. While the company's 10-year median is 9.97 vs. the industry median of 6.46, Michael Hill International 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 Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.46, based on 1,097 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. Michael Hill International's current ROE % of 24.83% is 284.4% 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 Michael Hill International and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Michael Hill International's current ROE % is 24.83%, which is 149% above median its own 10-year median of 9.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Michael Hill International stock overvalued right now?
Based on GuruFocus' analysis, Michael Hill International (ASX:MHJ) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.57, compared to a current price of A$0.33 — trading 42.1% below its estimated fair value. The current ROE % is 24.83%, which is 149% above median its 10-year median of 9.97 and 284.4% above the Retail - Cyclical industry median of 6.46. Michael Hill International's overall GF Score™ is 59/100 with 4 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 Michael Hill International (ASX:MHJ), the current ROE % is 24.83% 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 Michael Hill International (ASX:MHJ) Overvalued in 2026?
Based on GuruFocus' analysis, Michael Hill International stock appears to be undervalued.
The current stock price of A$0.33 is trading 42.1% below its estimated GF Value™ of A$0.57.
GuruFocus considers Michael Hill International to be Significantly Undervalued.
Key valuation signals for ASX:MHJ:
ROE %: 24.83% (149% above median its 10-year median of 9.97)
GF Value™: A$0.57 vs. price of A$0.33 (42.1% below fair value)
Industry Position: 284.4% above the Retail - Cyclical median (#658 of 1097)
No single metric tells the full story. See the ASX:MHJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Michael Hill International Ltd is an Australia based specialist retail jewellery chain engaged in the sale of jewellery and related services. It operates stores in Australia, New Zealand and Canada. It derives prime revenue from Australia. The product portfolio of the company includes Rings, Earrings, Pendants and Necklaces, Bracelets, Bangles and other products.
59GF Score
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