Chow Tai Fook Jewellery Group (FRA:1CT) ROE %: 45.50% (As of Mar. 2026) — 145% Above Median


FRA:1CT Chow Tai Fook Jewellery Group Ltd FRA:1CT
93 GF Score
Price €1.20
GF Value €1.24
Valuation Fairly Valued
! 2 Warning Signs
View Full Analysis

What is Chow Tai Fook Jewellery Group ROE %?

Chow Tai Fook Jewellery Group FRA:1CT -3.23% 93 ROE % is 45.50% as of Mar. 2026, which is 145% above its 10-year median of 18.58. GuruFocus rates FRA:1CT with a GF Score™ of 93/100 and a GF Value™ of €1.24 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,097 Retail - Cyclical companies, Chow Tai Fook Jewellery Group ranks better than 90.43% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Chow Tai Fook Jewellery Group's annualized net income for the quarter that ended in Mar. 2026 was €1,430 Mil. Chow Tai Fook Jewellery Group's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €3,144 Mil. Therefore, Chow Tai Fook Jewellery Group's annualized ROE % for the quarter that ended in Mar. 2026 was 45.50%.

The historical rank and industry rank for Chow Tai Fook Jewellery Group's ROE % or its related term are showing as below:

FRA:1CT' s ROE % Range Over the Past 10 Years
Min: 9.16   Med: 18.58   Max: 32.32
Current: 32.32

During the past 13 years, Chow Tai Fook Jewellery Group's highest ROE % was 32.32%. The lowest was 9.16%. And the median was 18.58%.

FRA:1CT's ROE % is ranked better than
90.43% of 1097 companies
in the Retail - Cyclical industry
Industry Median: 6.46 vs FRA:1CT: 32.32

Chow Tai Fook Jewellery Group  (FRA:1CT) 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:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=1430.254/3143.736
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1430.254 / 12248.08)*(12248.08 / 9513.3125)*(9513.3125 / 3143.736)
=Net Margin %*Asset Turnover*Equity Multiplier
=11.68 %*1.2875*3.0261
=ROA %*Equity Multiplier
=15.04 %*3.0261
=45.50 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=1430.254/3143.736
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1430.254 / 1895.776) * (1895.776 / 2601.366) * (2601.366 / 12248.08) * (12248.08 / 9513.3125) * (9513.3125 / 3143.736)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7544 * 0.7288 * 21.24 % * 1.2875 * 3.0261
=45.50 %

Note: The net income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.


Chow Tai Fook Jewellery Group ROE % Related Terms


Chow Tai Fook Jewellery Group ROE % Historical Data

* Premium members only.

The historical data trend for Chow Tai Fook Jewellery Group'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.

Chow Tai Fook Jewellery Group ROE % Chart

Chow Tai Fook Jewellery Group Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.55 16.52 22.22 22.82 30.30

Chow Tai Fook Jewellery Group Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.87 19.66 26.52 18.46 45.50

FRA:1CT vs TPR: ROE % Comparison

For the Luxury Goods subindustry, Chow Tai Fook Jewellery Group'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.


Chow Tai Fook Jewellery Group ROE % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Chow Tai Fook Jewellery Group's ROE % distribution charts can be found below:

* The bar in red indicates where Chow Tai Fook Jewellery Group's ROE % falls into.


FRA:1CT
93GF Score
Chow Tai Fook Jewellery Group Ltd FRA:1CT
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Chow Tai Fook Jewellery Group ROE % Calculation

Chow Tai Fook Jewellery Group's annualized ROE % for the fiscal year that ended in Mar. 2026 is calculated as

ROE %=Net Income (A: Mar. 2026 )/( (Total Stockholders Equity (A: Mar. 2025 )+Total Stockholders Equity (A: Mar. 2026 ))/ count )
=995.135/( (3144.748+3423.109)/ 2 )
=995.135/3283.9285
=30.30 %

Chow Tai Fook Jewellery Group's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=1430.254/( (2864.363+3423.109)/ 2 )
=1430.254/3143.736
=45.50 %

* 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 (Mar. 2026) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 45.50% mean?
Chow Tai Fook Jewellery Group (FRA:1CT) has a ROE % of 45.50% 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 Chow Tai Fook Jewellery Group and its competitors. This is 145% above median its historical median of 18.58. Over the past decade, Chow Tai Fook Jewellery Group's ROE % has ranged from 9.16 to 32.32. According to the industry distribution chart, Chow Tai Fook Jewellery Group ranks #105 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 9.6%.
Is Chow Tai Fook Jewellery Group's ROE % too high?
Chow Tai Fook Jewellery Group's current ROE % of 45.50% is 145% above median its 10-year median of 18.58. Over the past 10 years, this metric has ranged from a low of 9.16 to a high of 32.32. The Retail - Cyclical industry median ROE % is 6.46. Chow Tai Fook Jewellery Group's value of 45.50% is 604.3% above this industry median. Based on the distribution chart, Chow Tai Fook Jewellery Group ranks #105 out of 1097 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Chow Tai Fook Jewellery Group has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chow Tai Fook Jewellery Group's ROE % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Chow Tai Fook Jewellery Group ranks #105 out of 1097 companies for ROE %. This places Chow Tai Fook Jewellery Group in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 6.46. Chow Tai Fook Jewellery Group's value of 45.50% is 604.3% above this benchmark. Historically, Chow Tai Fook Jewellery Group's own ROE % has ranged from 9.16 to 32.32 over the past decade. While the company's 10-year median is 18.58 vs. the industry median of 6.46, Chow Tai Fook Jewellery Group 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 a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.46, based on 1,097 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. Chow Tai Fook Jewellery Group's current ROE % of 45.50% is 604.3% 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 Chow Tai Fook Jewellery Group and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chow Tai Fook Jewellery Group's current ROE % is 45.50%, which is 145% above median its own 10-year median of 18.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chow Tai Fook Jewellery Group stock overvalued right now?
Based on GuruFocus' analysis, Chow Tai Fook Jewellery Group (FRA:1CT) is currently considered Fairly Valued. The stock's GF Value™ is €1.24, compared to a current price of €1.20 — trading 3.2% below its estimated fair value. The current ROE % is 45.50%, which is 145% above median its 10-year median of 18.58 and 604.3% above the Retail - Cyclical industry median of 6.46. Chow Tai Fook Jewellery Group's overall GF Score™ is 93/100 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 Chow Tai Fook Jewellery Group (FRA:1CT), the current ROE % is 45.50% 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 Chow Tai Fook Jewellery Group (FRA:1CT) Overvalued in 2026?

Based on GuruFocus' analysis, Chow Tai Fook Jewellery Group stock appears to be undervalued. The current stock price of €1.20 is trading 3.2% below its estimated GF Value™ of €1.24. GuruFocus considers Chow Tai Fook Jewellery Group to be Fairly Valued.

Key valuation signals for FRA:1CT:

  • ROE %: 45.50% (145% above median its 10-year median of 18.58)
  • GF Value™: €1.24 vs. price of €1.20 (3.2% below fair value)
  • GF Score™: 93/100 with 2 warning signs
  • Industry Position: 604.3% above the Retail - Cyclical median (#105 of 1097)

No single metric tells the full story. See the FRA:1CT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Chow Tai Fook Jewellery Group Business Description

Address 16 - 18 Queen\'s Road Central, 33rd Floor, New World Tower, Central, Hong Kong, HKG
Chow Tai Fook Jewellery Group Ltd core business is the manufacturing and selling of high-end luxury, mass luxury, and youth line jewellery products, and the distribution of watches of various brands. Its brand portfolio includes Chow Tai Fook, Hearts On Fire, Enzo and Monologue, offering a wide multiple products and an expanding range of IP collaborations. The Group's offerings include high jewellery collections and Chow Tai Fook Home, a luxury home decor category. Geographically, the Group operates through Mainland China, Hong Kong, Macau and other markets, with Mainland China contributing the majority of revenue.
93GF Score

Get the complete analysis for FRA:1CT

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€1.20
Price
€1.24
GF Value