WatercoASX:WAT 86 ROE % is 9.38% as of Dec. 2025, which is 14% above its 10-year median of 8.21. GuruFocus rates ASX:WAT with a GF Score™ of 86/100 and a GF Value™ of A$7.63 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 3,009 Industrial Products companies, Waterco ranks better than 56.46% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Waterco's annualized net income for the quarter that ended in Dec. 2025 was A$13.5 Mil. Waterco's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was A$143.8 Mil. Therefore, Waterco's annualized ROE % for the quarter that ended in Dec. 2025 was 9.38%.
The historical rank and industry rank for Waterco's ROE % or its related term are showing as below:
ASX:WAT'
s ROE % Range Over the Past 10 Years
Min: 2.33 Med: 8.21 Max: 17.63
Current: 7.35
During the past 13 years, Waterco's highest ROE % was 17.63%. The lowest was 2.33%. And the median was 8.21%.
ASX:WAT's ROE % is ranked better than 56.46% of 3009
companies
in the Industrial Products industry
Industry Median: 5.91
vs ASX:WAT: 7.35
Waterco (ASX:WAT) 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.
Waterco ROE % Related Terms
Waterco ROE % Historical Data
* Premium members only.
The historical data trend for Waterco'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 Pollution & Treatment Controls subindustry, Waterco'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.
Waterco ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Waterco's ROE % distribution charts can be found below:
* The bar in red indicates where Waterco'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.
Waterco (ASX:WAT) has a ROE % of 9.38% 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 Waterco and its competitors. This is 14% above median its historical median of 8.21. Over the past decade, Waterco's ROE % has ranged from 2.33 to 17.63. According to the industry distribution chart, Waterco ranks #1310 out of 3009 companies in the Industrial Products industry, placing it in the top 43.5%.
Is Waterco's ROE % too high?
Waterco's current ROE % of 9.38% is 14% above median its 10-year median of 8.21. Over the past 10 years, this metric has ranged from a low of 2.33 to a high of 17.63. The Industrial Products industry median ROE % is 5.91. Waterco's value of 9.38% is 58.7% above this industry median. Based on the distribution chart, Waterco ranks #1310 out of 3009 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Waterco has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Waterco's ROE % compare to VLTO and ZWS?
According to the Industrial Products industry distribution chart, Waterco ranks #1310 out of 3009 companies for ROE %. This puts Waterco in the upper half of its industry. The industry median ROE % is 5.91. Waterco's value of 9.38% is 58.7% above this benchmark. Historically, Waterco's own ROE % has ranged from 2.33 to 17.63 over the past decade. While the company's 10-year median is 8.21 vs. the industry median of 5.91, Waterco 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 an Industrial Products company?
The median ROE % among Industrial Products companies is 5.91, based on 3,009 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. Waterco's current ROE % of 9.38% is 58.7% 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 Waterco and its competitors. For the Industrial Products industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Waterco's current ROE % is 9.38%, which is 14% above median its own 10-year median of 8.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Waterco stock overvalued right now?
Based on GuruFocus' analysis, Waterco (ASX:WAT) is currently considered Significantly Undervalued. The stock's GF Value™ is A$7.63, compared to a current price of A$5.20 — trading 31.8% below its estimated fair value. The current ROE % is 9.38%, which is 14% above median its 10-year median of 8.21 and 58.7% above the Industrial Products industry median of 5.91. Waterco's overall GF Score™ is 86/100 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 Waterco (ASX:WAT), the current ROE % is 9.38% 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 Waterco (ASX:WAT) Overvalued in 2026?
Based on GuruFocus' analysis, Waterco stock appears to be undervalued.
The current stock price of A$5.20 is trading 31.8% below its estimated GF Value™ of A$7.63.
GuruFocus considers Waterco to be Significantly Undervalued.
Key valuation signals for ASX:WAT:
ROE %: 9.38% (14% above median its 10-year median of 8.21)
GF Value™: A$7.63 vs. price of A$5.20 (31.8% below fair value)
Industry Position: 58.7% above the Industrial Products median (#1310 of 3009)
No single metric tells the full story. See the ASX:WAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Waterco Ltd designs, manufactures, and distributes filtration and sanitisation products for swimming pools, spas, aquaculture, and water purification sectors. The company serves residential, commercial, and industrial markets in various countries. Waterco operates manufacturing and R&D facilities in Australia, New Zealand, Malaysia, China, and other countries. It also franchises Swimart, a pool and spa retail network in Australia and New Zealand, and is the exclusive distributor of Zane Solar Pool Heating systems. Waterco's product range includes pool equipment, water treatment systems, chemicals, and solar heating solutions. The company generates revenue predominantly through the sales of pool and spa equipment, water treatment systems, and franchising operations.
86GF Score
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