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Luohe Letone Hydraulics Technology Co (BJSE:920225) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) 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.
Luohe Letone Hydraulics Technology Co ROE % Related Terms
Luohe Letone Hydraulics Technology Co 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 Oil & Gas Equipment & Services subindustry, Luohe Letone Hydraulics Technology Co'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.
Luohe Letone Hydraulics Technology Co ROE % vs Oil & Gas Industry
* 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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Luohe Letone Hydraulics Technology Co (BJSE:920225) has a ROE % of 5.16% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Luohe Letone Hydraulics Technology Co and its competitors. This is 60% below median its historical median of 13.05. Over the past decade, Luohe Letone Hydraulics Technology Co's ROE % has ranged from 7.94 to 25.02. According to the industry distribution chart, Luohe Letone Hydraulics Technology Co ranks #448 out of 965 companies in the Oil & Gas industry, placing it in the top 46.4%.
Is Luohe Letone Hydraulics Technology Co's ROE % too high?
Luohe Letone Hydraulics Technology Co's current ROE % of 5.16% is 60% below median its 10-year median of 13.05. Over the past 10 years, this metric has ranged from a low of 7.94 to a high of 25.02. The Oil & Gas industry median ROE % is 6.81. Luohe Letone Hydraulics Technology Co's value of 5.16% is 24.2% below this industry median. Based on the distribution chart, Luohe Letone Hydraulics Technology Co ranks #448 out of 965 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Luohe Letone Hydraulics Technology Co has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Luohe Letone Hydraulics Technology Co's ROE % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Luohe Letone Hydraulics Technology Co ranks #448 out of 965 companies for ROE %. This puts Luohe Letone Hydraulics Technology Co in the upper half of its industry. The industry median ROE % is 6.81. Luohe Letone Hydraulics Technology Co's value of 5.16% is 24.2% below this benchmark. Historically, Luohe Letone Hydraulics Technology Co's own ROE % has ranged from 7.94 to 25.02 over the past decade. While the company's 10-year median is 13.05 vs. the industry median of 6.81, Luohe Letone Hydraulics Technology Co 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 Oil & Gas company?
The median ROE % among Oil & Gas companies is 6.81, based on 965 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. Luohe Letone Hydraulics Technology Co's current ROE % of 5.16% is 24.2% 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 Luohe Letone Hydraulics Technology Co and its competitors. For the Oil & Gas industry, the median ROE % is 6.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luohe Letone Hydraulics Technology Co's current ROE % is 5.16%, which is 60% below median its own 10-year median of 13.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luohe Letone Hydraulics Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Luohe Letone Hydraulics Technology Co (BJSE:920225) is currently considered Fairly Valued. The stock's GF Value™ is ¥14.30, compared to a current price of ¥15.68 — trading 9.7% above its estimated fair value. The current ROE % is 5.16%, which is 60% below median its 10-year median of 13.05 and 24.2% below the Oil & Gas industry median of 6.81. Luohe Letone Hydraulics Technology Co's overall GF Score™ is 81/100 with 2 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 Luohe Letone Hydraulics Technology Co (BJSE:920225), the current ROE % is 5.16% as of Mar. 2026. 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 Luohe Letone Hydraulics Technology Co (BJSE:920225) Overvalued in 2026?
Based on GuruFocus' analysis, Luohe Letone Hydraulics Technology Co stock appears to be overvalued.
The current stock price of ¥15.68 is trading 9.7% above its estimated GF Value™ of ¥14.30.
GuruFocus considers Luohe Letone Hydraulics Technology Co to be Fairly Valued.
Key valuation signals for BJSE:920225:
ROE %: 5.16% (60% below median its 10-year median of 13.05)
GF Value™: ¥14.30 vs. price of ¥15.68 (9.7% above fair value)
Industry Position: 24.2% below the Oil & Gas median (#448 of 965)
No single metric tells the full story. See the BJSE:920225 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luohe Letone Hydraulics Technology Co Ltd is engaged in research and development, production, and sales of rubber hydraulic hoses. It is focused on polymer material blending, polymer material modification, hydraulic hoses, oil drilling hoses, fracturing hoses, rubber-plastic composite hoses, ultra-high pressure resin hoses, and fluid connections. It provides high-efficiency solutions for fluid transportation, high-performance solutions for polymer material blends, and high-efficiency transportation for shale oil and gas stimulation and acid fracturing pipelines.
81GF Score
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