Motorcycle HoldingsASX:MTO -0.81%85 ROE % is 10.73% as of Dec. 2025, which is 8% below its 10-year median of 11.66. GuruFocus rates ASX:MTO with a GF Score™ of 85/100 and a GF Value™ of A$2.64 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,308 Vehicles & Parts companies, Motorcycle Holdings ranks better than 61.93% on this metric.
The historical rank and industry rank for Motorcycle Holdings's ROE % or its related term are showing as below:
ASX:MTO'
s ROE % Range Over the Past 10 Years
Min: -7.02 Med: 11.66 Max: 24
Current: 9.52
During the past 10 years, Motorcycle Holdings's highest ROE % was 24.00%. The lowest was -7.02%. And the median was 11.66%.
ASX:MTO's ROE % is ranked better than 61.93% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 6.62
vs ASX:MTO: 9.52
Motorcycle Holdings (ASX:MTO) 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.
Motorcycle Holdings ROE % Related Terms
Motorcycle Holdings ROE % Historical Data
* Premium members only.
The historical data trend for Motorcycle Holdings'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 Auto & Truck Dealerships subindustry, Motorcycle 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.
Motorcycle Holdings ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Motorcycle Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Motorcycle 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.
Motorcycle Holdings (ASX:MTO) has a ROE % of 10.73% 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 Motorcycle Holdings and its competitors. This is near median its historical median of 11.66. According to the industry distribution chart, Motorcycle Holdings ranks #498 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 38.1%.
Is Motorcycle Holdings' ROE % too high?
Motorcycle Holdings' current ROE % of 10.73% is near median its 10-year median of 11.66. The Vehicles & Parts industry median ROE % is 6.62. Motorcycle Holdings' value of 10.73% is 62.1% above this industry median. Based on the distribution chart, Motorcycle Holdings ranks #498 out of 1308 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Motorcycle Holdings has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Motorcycle Holdings' ROE % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Motorcycle Holdings ranks #498 out of 1308 companies for ROE %. This puts Motorcycle Holdings in the upper half of its industry. The industry median ROE % is 6.62. Motorcycle Holdings' value of 10.73% is 62.1% above this benchmark. While the company's 10-year median is 11.66 vs. the industry median of 6.62, Motorcycle 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 Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 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. Motorcycle Holdings's current ROE % of 10.73% is 62.1% 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 Motorcycle Holdings and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorcycle Holdings's current ROE % is 10.73%, which is near median its own 10-year median of 11.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motorcycle Holdings stock overvalued right now?
Based on GuruFocus' analysis, Motorcycle Holdings (ASX:MTO) is currently considered Fairly Valued. The stock's GF Value™ is A$2.64, compared to a current price of A$2.45 — trading 7.2% below its estimated fair value. The current ROE % is 10.73%, which is near median its 10-year median of 11.66 and 62.1% above the Vehicles & Parts industry median of 6.62. Motorcycle Holdings' overall GF Score™ is 85/100 with 5 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 Motorcycle Holdings (ASX:MTO), the current ROE % is 10.73% 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 Motorcycle Holdings (ASX:MTO) Overvalued in 2026?
Based on GuruFocus' analysis, Motorcycle Holdings stock appears to be undervalued.
The current stock price of A$2.45 is trading 7.2% below its estimated GF Value™ of A$2.64.
GuruFocus considers Motorcycle Holdings to be Fairly Valued.
Key valuation signals for ASX:MTO:
ROE %: 10.73% (near median its 10-year median of 11.66)
GF Value™: A$2.64 vs. price of A$2.45 (7.2% below fair value)
Industry Position: 62.1% above the Vehicles & Parts median (#498 of 1308)
No single metric tells the full story. See the ASX:MTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Motorcycle Holdings Ltd is a motorcycle dealer in Australia. It has two reporting segments. First, Motorcycle Retailing, which offers a range of motorcycle products and services to the general public in Australia, including the sale of new and used motorcycles, parts, servicing, accessories, and MPPs. The segment also facilitates insurance and financing for motorcycle purchases through third-party sources. Second, the Motorcycle and Accessories Wholesaling segment, which imports and distributes a range of motorcycles, ATVs, scooters, and motorcycle parts and accessories to wholesale customers in Australia and New Zealand, including the Group's own retail outlets.
85GF Score
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