The historical rank and industry rank for FAR Chemical Industry's ROE % or its related term are showing as below:
DHA:FARCHEM'
s ROE % Range Over the Past 10 Years
Min: -11.31 Med: 1.51 Max: 16.4
Current: -11.31
During the past 12 years, FAR Chemical Industry's highest ROE % was 16.40%. The lowest was -11.31%. And the median was 1.51%.
DHA:FARCHEM's ROE % is ranked worse than 87.37% of 1591
companies
in the Chemicals industry
Industry Median: 5.19
vs DHA:FARCHEM: -11.31
FAR Chemical Industry (DHA:FARCHEM) 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.
* 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 Specialty Chemicals subindustry, FAR Chemical Industry'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.
FAR Chemical Industry ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, FAR Chemical Industry's ROE % distribution charts can be found below:
* The bar in red indicates where FAR Chemical Industry'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
FAR Chemical Industry (DHA:FARCHEM) has a ROE % of -19.51% 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 FAR Chemical Industry and its competitors. According to the industry distribution chart, FAR Chemical Industry ranks #1390 out of 1591 companies in the Chemicals industry, placing it in the top 87.4%.
Is FAR Chemical Industry's ROE % too high?
FAR Chemical Industry's current ROE % is -19.51%. Based on the distribution chart, FAR Chemical Industry ranks #1390 out of 1591 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, FAR Chemical Industry has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does FAR Chemical Industry's ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, FAR Chemical Industry ranks #1390 out of 1591 companies for ROE %. This places FAR Chemical Industry in the lower half of its industry. The industry median ROE % is 5.19. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Chemicals company?
The median ROE % among Chemicals companies is 5.19, based on 1,591 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. 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 FAR Chemical Industry and its competitors. For the Chemicals industry, the median ROE % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FAR Chemical Industry's current ROE % is -19.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FAR Chemical Industry stock overvalued right now?
Based on GuruFocus' analysis, FAR Chemical Industry (DHA:FARCHEM) is currently considered Fairly Valued. The stock's GF Value™ is BDT18.80, compared to a current price of BDT18.50 — trading 1.6% below its estimated fair value. The current ROE % is -19.51%. FAR Chemical Industry's overall GF Score™ is 87/100 with 7 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 FAR Chemical Industry (DHA:FARCHEM), the current ROE % is -19.51% 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 FAR Chemical Industry (DHA:FARCHEM) Overvalued in 2026?
Based on GuruFocus' analysis, FAR Chemical Industry stock appears to be undervalued.
The current stock price of BDT18.50 is trading 1.6% below its estimated GF Value™ of BDT18.80.
GuruFocus considers FAR Chemical Industry to be Fairly Valued.
Key valuation signals for DHA:FARCHEM:
ROE %: -19.51%
GF Value™: BDT18.80 vs. price of BDT18.50 (1.6% below fair value)
No single metric tells the full story. See the DHA:FARCHEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FAR Chemical Industry Ltd operates in the textile dyeing chemical industry. The company is principally engaged in the manufacture and export of Chemical products to different export-oriented Textiles, dyeing and Apparels industries. It generates all of its revenue from the sale of Yarn.
87GF Score
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