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Wenzhou Kangning Hospital Co (FRA:4WK) 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 (Jun. 2026) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.
Wenzhou Kangning Hospital Co ROE % Related Terms
Wenzhou Kangning Hospital 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 Medical Care Facilities subindustry, Wenzhou Kangning Hospital 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.
Wenzhou Kangning Hospital Co ROE % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Wenzhou Kangning Hospital Co's ROE % distribution charts can be found below:
* The bar in red indicates where Wenzhou Kangning Hospital Co'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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Wenzhou Kangning Hospital Co (FRA:4WK) has a ROE % of 5.80% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Wenzhou Kangning Hospital Co and its competitors. This is 16% above median its historical median of 5.01. According to the industry distribution chart, Wenzhou Kangning Hospital Co ranks #343 out of 626 companies in the Healthcare Providers & Services industry, placing it in the top 54.8%.
Is Wenzhou Kangning Hospital Co's ROE % too high?
Wenzhou Kangning Hospital Co's current ROE % of 5.80% is 16% above median its 10-year median of 5.01. The Healthcare Providers & Services industry median ROE % is 6.01. Wenzhou Kangning Hospital Co's value of 5.80% is 3.5% below this industry median. Based on the distribution chart, Wenzhou Kangning Hospital Co ranks #343 out of 626 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, Wenzhou Kangning Hospital Co has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Wenzhou Kangning Hospital Co's ROE % compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Wenzhou Kangning Hospital Co ranks #343 out of 626 companies for ROE %. This places Wenzhou Kangning Hospital Co in the lower half of its industry. The industry median ROE % is 6.01. Wenzhou Kangning Hospital Co's value of 5.80% is 3.5% below this benchmark. While the company's 10-year median is 5.01 vs. the industry median of 6.01, Wenzhou Kangning Hospital 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 a Healthcare Providers & Services company?
The median ROE % among Healthcare Providers & Services companies is 6.01, based on 626 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. Wenzhou Kangning Hospital Co's current ROE % of 5.80% is 3.5% 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 Wenzhou Kangning Hospital Co and its competitors. For the Healthcare Providers & Services industry, the median ROE % is 6.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wenzhou Kangning Hospital Co's current ROE % is 5.80%, which is 16% above median its own 10-year median of 5.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wenzhou Kangning Hospital Co stock overvalued right now?
Wenzhou Kangning Hospital Co (FRA:4WK) has a current ROE % of 5.80%. The stock's GF Value™ is €1.35, compared to a current price of €0.94 — trading 30.7% below its estimated fair value. The current ROE % is 5.80%, which is 16% above median its 10-year median of 5.01 and 3.5% below the Healthcare Providers & Services industry median of 6.01. Wenzhou Kangning Hospital Co's overall GF Score™ is 75/100 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 Wenzhou Kangning Hospital Co (FRA:4WK), the current ROE % is 5.80% as of Jun. 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 Wenzhou Kangning Hospital Co (FRA:4WK) Overvalued in 2026?
Based on GuruFocus' analysis, Wenzhou Kangning Hospital Co stock appears to be undervalued.
The current stock price of €0.94 is trading 30.7% below its estimated GF Value™ of €1.35.
Key valuation signals for FRA:4WK:
ROE %: 5.80% (16% above median its 10-year median of 5.01)
GF Value™: €1.35 vs. price of €0.94 (30.7% below fair value)
Industry Position: 3.5% below the Healthcare Providers & Services median (#343 of 626)
No single metric tells the full story. See the FRA:4WK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wenzhou Kangning Hospital Co Ltd is engaged in operating a network of healthcare facilities that focus on providing psychiatric specialty care and elderly rehabilitation service across various regions in China. It derives revenue from operating its owned hospitals consists of fees charged for outpatient visits and inpatient services at the group's various hospitals, which can be divided into treatment and general healthcare services and pharmaceutical sales, as well as variable considerations for medical services provided by the group, mainly including medical insurance settlement differences.
75GF Score
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