Nido Education (ASX:NDO) ROE %: 7.11% (As of Dec. 2025) — 29% Above Median


ASX:NDO Nido Education Ltd ASX:NDO
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What is Nido Education ROE %?

Nido Education ASX:NDO +6.06% 15 ROE % is 7.11% as of Dec. 2025, which is 29% above its 10-year median of 5.50. GuruFocus rates ASX:NDO with a GF Score™ of 15/100. The stock has 8 warning signs investors should review. Among 263 Education companies, Nido Education ranks worse than 55.89% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Nido Education's annualized net income for the quarter that ended in Dec. 2025 was A$8.0 Mil. Nido Education's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was A$112.4 Mil. Therefore, Nido Education's annualized ROE % for the quarter that ended in Dec. 2025 was 7.11%.

The historical rank and industry rank for Nido Education's ROE % or its related term are showing as below:

ASX:NDO' s ROE % Range Over the Past 10 Years
Min: -16.37   Med: 5.5   Max: 12.57
Current: 5.59

During the past 4 years, Nido Education's highest ROE % was 12.57%. The lowest was -16.37%. And the median was 5.50%.

ASX:NDO's ROE % is ranked worse than
55.89% of 263 companies
in the Education industry
Industry Median: 7.31 vs ASX:NDO: 5.59

Nido Education  (ASX:NDO) 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:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=7.99/112.389
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(7.99 / 177.416)*(177.416 / 334.509)*(334.509 / 112.389)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.5 %*0.5304*2.9763
=ROA %*Equity Multiplier
=2.39 %*2.9763
=7.11 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=7.99/112.389
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (7.99 / 11.75) * (11.75 / 27.05) * (27.05 / 177.416) * (177.416 / 334.509) * (334.509 / 112.389)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.68 * 0.4344 * 15.25 % * 0.5304 * 2.9763
=7.11 %

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.


Nido Education ROE % Related Terms


Nido Education ROE % Historical Data

* Premium members only.

The historical data trend for Nido Education'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.

Nido Education ROE % Chart

Nido Education Annual Data
Trend Dec22 Dec23 Dec24 Dec25
ROE %
0.00 -16.37 12.57 5.50

Nido Education Semi-Annual Data
Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROE % Get a 7-Day Free Trial -59.89 6.03 19.10 4.23 7.11

ASX:NDO vs EDU, TAL, GHC: ROE % Comparison

For the Education & Training Services subindustry, Nido 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.


Nido Education ROE % vs Education Industry

For the Education industry and Consumer Defensive sector, Nido Education's ROE % distribution charts can be found below:

* The bar in red indicates where Nido Education's ROE % falls into.


ASX:NDO
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Nido Education Ltd ASX:NDO
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Nido Education ROE % Calculation

Nido Education's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=6.494/( (123.679+112.29)/ 2 )
=6.494/117.9845
=5.50 %

Nido Education's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Jun. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=7.99/( (112.488+112.29)/ 2 )
=7.99/112.389
=7.11 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 7.11% mean?
Nido Education (ASX:NDO) has a ROE % of 7.11% 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 Nido Education and its competitors. This is 29% above median its historical median of 5.50. According to the industry distribution chart, Nido Education ranks #147 out of 263 companies in the Education industry, placing it in the top 55.9%.
Is Nido Education's ROE % too high?
Nido Education's current ROE % of 7.11% is 29% above median its 10-year median of 5.50. The Education industry median ROE % is 7.31. Nido Education's value of 7.11% is 2.7% below this industry median. Based on the distribution chart, Nido Education ranks #147 out of 263 companies in the Education industry, which is below the industry midpoint. Overall, Nido Education has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Nido Education's ROE % compare to EDU and TAL?
According to the Education industry distribution chart, Nido Education ranks #147 out of 263 companies for ROE %. This places Nido Education in the lower half of its industry. The industry median ROE % is 7.31. Nido Education's value of 7.11% is 2.7% below this benchmark. While the company's 10-year median is 5.50 vs. the industry median of 7.31, Nido Education 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 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. Nido Education's current ROE % of 7.11% is 2.7% 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 Nido 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. Nido Education's current ROE % is 7.11%, which is 29% above median its own 10-year median of 5.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nido Education stock overvalued right now?
Nido Education (ASX:NDO) has a current ROE % of 7.11%. The current ROE % is 7.11%, which is 29% above median its 10-year median of 5.50 and 2.7% below the Education industry median of 7.31. Nido Education's overall GF Score™ is 15/100 with 8 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 Nido Education (ASX:NDO), the current ROE % is 7.11% 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.

Nido Education Business Description

Address 1 Park Avenue, Suite 3, Drummoyne, NSW, AUS, 2047
Nido Education Ltd is a national owner, operator and manager of long-day early childhood education and care services. It offers exceptional education and care for children, from six weeks, through to school age, in a safe, comfortable, nurturing and peaceful environment. The Group operates in one segment being child care services.
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