Gamma CommunicationsFRA:6GC -0.51%86 ROE % is 17.32% as of Dec. 2025, which is 27% below its 10-year median of 23.87. GuruFocus rates FRA:6GC with a GF Score™ of 86/100 and a GF Value™ of €17.76 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 345 Telecommunication Services companies, Gamma Communications ranks better than 74.2% on this metric.
The historical rank and industry rank for Gamma Communications's ROE % or its related term are showing as below:
FRA:6GC'
s ROE % Range Over the Past 10 Years
Min: 16.67 Med: 23.87 Max: 36.28
Current: 17.5
During the past 13 years, Gamma Communications's highest ROE % was 36.28%. The lowest was 16.67%. And the median was 23.87%.
FRA:6GC's ROE % is ranked better than 74.2% of 345
companies
in the Telecommunication Services industry
Industry Median: 7.35
vs FRA:6GC: 17.50
Gamma Communications (FRA:6GC) 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.
* 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 Telecom Services subindustry, Gamma Communications'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.
Gamma Communications ROE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Gamma Communications's ROE % distribution charts can be found below:
* The bar in red indicates where Gamma Communications'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.
Gamma Communications (FRA:6GC) has a ROE % of 17.32% 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 Gamma Communications and its competitors. This is 27% below median its historical median of 23.87. Over the past decade, Gamma Communications' ROE % has ranged from 16.67 to 36.28. According to the industry distribution chart, Gamma Communications ranks #89 out of 345 companies in the Telecommunication Services industry, placing it in the top 25.8%.
Is Gamma Communications' ROE % too high?
Gamma Communications' current ROE % of 17.32% is 27% below median its 10-year median of 23.87. Over the past 10 years, this metric has ranged from a low of 16.67 to a high of 36.28. The Telecommunication Services industry median ROE % is 7.35. Gamma Communications' value of 17.32% is 135.6% above this industry median. Based on the distribution chart, Gamma Communications ranks #89 out of 345 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Gamma Communications has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gamma Communications' ROE % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Gamma Communications ranks #89 out of 345 companies for ROE %. This puts Gamma Communications in the upper half of its industry. The industry median ROE % is 7.35. Gamma Communications' value of 17.32% is 135.6% above this benchmark. Historically, Gamma Communications' own ROE % has ranged from 16.67 to 36.28 over the past decade. While the company's 10-year median is 23.87 vs. the industry median of 7.35, Gamma Communications 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 Telecommunication Services company?
The median ROE % among Telecommunication Services companies is 7.35, based on 345 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. Gamma Communications's current ROE % of 17.32% is 135.6% 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 Gamma Communications and its competitors. For the Telecommunication Services industry, the median ROE % is 7.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gamma Communications's current ROE % is 17.32%, which is 27% below median its own 10-year median of 23.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gamma Communications stock overvalued right now?
Based on GuruFocus' analysis, Gamma Communications (FRA:6GC) is currently considered Significantly Undervalued. The stock's GF Value™ is €17.76, compared to a current price of €9.80 — trading 44.8% below its estimated fair value. The current ROE % is 17.32%, which is 27% below median its 10-year median of 23.87 and 135.6% above the Telecommunication Services industry median of 7.35. Gamma Communications' overall GF Score™ is 86/100 with 3 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 Gamma Communications (FRA:6GC), the current ROE % is 17.32% 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 Gamma Communications (FRA:6GC) Overvalued in 2026?
Based on GuruFocus' analysis, Gamma Communications stock appears to be undervalued.
The current stock price of €9.80 is trading 44.8% below its estimated GF Value™ of €17.76.
GuruFocus considers Gamma Communications to be Significantly Undervalued.
Key valuation signals for FRA:6GC:
ROE %: 17.32% (27% below median its 10-year median of 23.87)
GF Value™: €17.76 vs. price of €9.80 (44.8% below fair value)
Industry Position: 135.6% above the Telecommunication Services median (#89 of 345)
No single metric tells the full story. See the FRA:6GC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gamma Communications PLC is a supplier of Unified Communications as a Service (UCaaS) in the United Kingdom and other markets, supplying communication solutions directly and via its network of trusted channel partners. The company offers various products across categories including Unified Communications, Voice Enablement, and Connectivity. The company also offers cybersecurity and managed enterprise solutions. Its operating segments are Gamma Business, Gamma Enterprise, Europe, and Central Functions. The majority of the company's revenue is generated from the Gamma Business segment which sells its products to smaller businesses in the UK. Geographically, the company generates a majority of its revenue from the United Kingdom and the rest from Europe.
86GF Score
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