Central SecuritiesCET +0.50%49 ROE % is 18.61% as of Dec. 2025, which is 3% above its 10-year median of 18.08. GuruFocus rates CET with a GF Score™ of 49/100 and a GF Value™ of $48.47 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,614 Asset Management companies, Central Securities ranks better than 76.83% on this metric.
The historical rank and industry rank for Central Securities's ROE % or its related term are showing as below:
CET'
s ROE % Range Over the Past 10 Years
Min: -12.87 Med: 18.08 Max: 29.85
Current: 15.84
During the past 13 years, Central Securities's highest ROE % was 29.85%. The lowest was -12.87%. And the median was 18.08%.
CET's ROE % is ranked better than 76.83% of 1614
companies
in the Asset Management industry
Industry Median: 6.36
vs CET: 15.84
Central Securities (AMEX:CET) 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.
Central Securities ROE % Related Terms
Central Securities ROE % Historical Data
* Premium members only.
The historical data trend for Central Securities'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 Asset Management subindustry, Central Securities'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.
Central Securities ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Central Securities's ROE % distribution charts can be found below:
* The bar in red indicates where Central Securities'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.
Central Securities (CET) has a ROE % of 18.61% 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 Central Securities and its competitors. This is near median its historical median of 18.08. According to the industry distribution chart, Central Securities ranks #374 out of 1614 companies in the Asset Management industry, placing it in the top 23.2%.
Is Central Securities' ROE % too high?
Central Securities' current ROE % of 18.61% is near median its 10-year median of 18.08. The Asset Management industry median ROE % is 6.36. Central Securities' value of 18.61% is 192.6% above this industry median. Based on the distribution chart, Central Securities ranks #374 out of 1614 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Central Securities has a GF Score™ of 49/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Central Securities' ROE % compare to ECAT and DXYZ?
According to the Asset Management industry distribution chart, Central Securities ranks #374 out of 1614 companies for ROE %. This places Central Securities in the top 23% of its industry — outperforming the majority of peers. The industry median ROE % is 6.36. Central Securities' value of 18.61% is 192.6% above this benchmark. While the company's 10-year median is 18.08 vs. the industry median of 6.36, Central Securities 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 Asset Management company?
The median ROE % among Asset Management companies is 6.36, based on 1,614 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. Central Securities's current ROE % of 18.61% is 192.6% 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 Central Securities and its competitors. For the Asset Management industry, the median ROE % is 6.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Central Securities's current ROE % is 18.61%, which is near median its own 10-year median of 18.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Central Securities stock overvalued right now?
Based on GuruFocus' analysis, Central Securities (CET) is currently considered Fairly Valued. The stock's GF Value™ is $48.47, compared to a current price of $51.83 — trading 6.9% above its estimated fair value. The current ROE % is 18.61%, which is near median its 10-year median of 18.08 and 192.6% above the Asset Management industry median of 6.36. Central Securities' overall GF Score™ is 49/100 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 Central Securities (CET), the current ROE % is 18.61% 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 Central Securities (CET) Overvalued in 2026?
Based on GuruFocus' analysis, Central Securities stock appears to be overvalued.
The current stock price of $51.83 is trading 6.9% above its estimated GF Value™ of $48.47.
GuruFocus considers Central Securities to be Fairly Valued.
Key valuation signals for CET:
ROE %: 18.61% (near median its 10-year median of 18.08)
GF Value™: $48.47 vs. price of $51.83 (6.9% above fair value)
Industry Position: 192.6% above the Asset Management median (#374 of 1614)
No single metric tells the full story. See the CET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Central Securities Corp is a non-diversified closed-end management investment company. The company's investment objective is long-term growth of capital. It invests in common stocks, bonds, convertible bonds, preferred stocks, convertible preferred stocks, warrants, options real estate, or short-term obligations of governments, banks, and corporations.
49GF Score
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