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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 four times the quarterly (Feb. 2025) net income data. The Revenue data used here is four times the quarterly (Feb. 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.
Bright Scholar Education Holdings ROE % Related Terms
Bright Scholar Education Holdings ROE % Historical Data
* 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 Education & Training Services subindustry, Bright Scholar Education 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.
Bright Scholar Education Holdings ROE % vs Education Industry
For the Education industry and Consumer Defensive sector, Bright Scholar Education Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Bright Scholar Education 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 four times the quarterly (Feb. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Bright Scholar Education Holdings (BEDU) has a ROE % of 21.44% as of Feb. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Bright Scholar Education Holdings and its competitors.
Is Bright Scholar Education Holdings' ROE % too high?
Bright Scholar Education Holdings' current ROE % is 21.44%. The Education industry median ROE % is 7.31. Bright Scholar Education Holdings' value of 21.44% is 193.3% above this industry median. Overall, Bright Scholar Education Holdings has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Bright Scholar Education Holdings' ROE % compare to SKIL and GNS?
Bright Scholar Education Holdings' ROE % of 21.44% can be compared against companies in the Education industry. The industry median ROE % is 7.31. Bright Scholar Education Holdings' value of 21.44% is 193.3% above this benchmark. 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 259 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. Bright Scholar Education Holdings's current ROE % of 21.44% is 193.3% 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 Bright Scholar Education Holdings 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. Bright Scholar Education Holdings's current ROE % is 21.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bright Scholar Education Holdings stock overvalued right now?
Bright Scholar Education Holdings (BEDU) has a current ROE % of 21.44%. The current ROE % is 21.44% and 193.3% above the Education industry median of 7.31. Bright Scholar Education Holdings' overall GF Score™ is 48/100. 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 Bright Scholar Education Holdings (BEDU), the current ROE % is 21.44% as of Feb. 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.
Bright Scholar Education Holdings Business Description
Bright Scholar Education Holdings Ltd operates as an education service provider. It is engaged in the provision of education services, including complementary education services, operation services for domestic schools, and education programs and services including independent schools and colleges in United Kingdom and the United States. It nearly eight overseas school located in the United Kingdom and the United States. It has three reportable segments, including Overseas Schools, Complementary Education Services, and K-12 Operation Services. Key revenue is generated from Overseas Schools. From a geographical perspective: Key revenue is generated from China following UK, U.S., Canada and Singapore.
48GF Score
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