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.
Meghna Petroleum ROE % Related Terms
Meghna Petroleum ROE % Historical Data
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The historical data trend for Meghna Petroleum'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 Oil & Gas Refining & Marketing subindustry, Meghna Petroleum'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.
Meghna Petroleum ROE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Meghna Petroleum's ROE % distribution charts can be found below:
* The bar in red indicates where Meghna Petroleum'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.
Meghna Petroleum (DHA:MPETROLEUM) has a ROE % of 17.60% 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 Meghna Petroleum and its competitors. This is 22% below median its historical median of 22.50. Over the past decade, Meghna Petroleum's ROE % has ranged from 16.92 to 32.49. According to the industry distribution chart, Meghna Petroleum ranks #126 out of 957 companies in the Oil & Gas industry, placing it in the top 13.2%.
Is Meghna Petroleum's ROE % too high?
Meghna Petroleum's current ROE % of 17.60% is 22% below median its 10-year median of 22.50. Over the past 10 years, this metric has ranged from a low of 16.92 to a high of 32.49. The Oil & Gas industry median ROE % is 5.71. Meghna Petroleum's value of 17.60% is 208.2% above this industry median. Based on the distribution chart, Meghna Petroleum ranks #126 out of 957 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Meghna Petroleum has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Meghna Petroleum's ROE % compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Meghna Petroleum ranks #126 out of 957 companies for ROE %. This places Meghna Petroleum in the top 13% of its industry — outperforming the majority of peers. The industry median ROE % is 5.71. Meghna Petroleum's value of 17.60% is 208.2% above this benchmark. Historically, Meghna Petroleum's own ROE % has ranged from 16.92 to 32.49 over the past decade. While the company's 10-year median is 22.50 vs. the industry median of 5.71, Meghna Petroleum 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 Oil & Gas company?
The median ROE % among Oil & Gas companies is 5.71, based on 957 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. Meghna Petroleum's current ROE % of 17.60% is 208.2% 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 Meghna Petroleum and its competitors. For the Oil & Gas industry, the median ROE % is 5.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meghna Petroleum's current ROE % is 17.60%, which is 22% below median its own 10-year median of 22.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meghna Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Meghna Petroleum (DHA:MPETROLEUM) is currently considered Modestly Overvalued. The stock's GF Value™ is BDT173.68, compared to a current price of BDT211.00 — trading 21.5% above its estimated fair value. The current ROE % is 17.60%, which is 22% below median its 10-year median of 22.50 and 208.2% above the Oil & Gas industry median of 5.71. Meghna Petroleum's overall GF Score™ is 84/100 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 Meghna Petroleum (DHA:MPETROLEUM), the current ROE % is 17.60% 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 Meghna Petroleum (DHA:MPETROLEUM) Overvalued in 2026?
Based on GuruFocus' analysis, Meghna Petroleum stock appears to be overvalued.
The current stock price of BDT211.00 is trading 21.5% above its estimated GF Value™ of BDT173.68.
GuruFocus considers Meghna Petroleum to be Modestly Overvalued.
Key valuation signals for DHA:MPETROLEUM:
ROE %: 17.60% (22% below median its 10-year median of 22.50)
GF Value™: BDT173.68 vs. price of BDT211.00 (21.5% above fair value)
Industry Position: 208.2% above the Oil & Gas median (#126 of 957)
No single metric tells the full story. See the DHA:MPETROLEUM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Meghna Petroleum Ltd is engaged in the business of petroleum oil and related products. The company is involved in the procurement, storage, and marketing of petroleum products, lubricants, oil and grease, bitumen, liquefied petroleum gas, and battery water in Bangladesh. The business has two reportable segments. The Petroleum Products segment includes the company's earnings from the marketing of petroleum products, bitumen, and LPG. The Lubricating Oil & Grease Operations segment includes the company's income from the trading of lubricating oil and grease of BP and Castrol brands. The majority of revenue comes from the Petroleum Products segment.
84GF Score
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