Haidilao International Holding (FRA:8HI) ROE %: 46.88% (As of Dec. 2025) — 27% Above Median


FRA:8HI Haidilao International Holding Ltd FRA:8HI
84 GF Score
Price €1.22
GF Value €1.97
Valuation Significantly Undervalued
! 1 Warning Sign
View Full Analysis

What is Haidilao International Holding ROE %?

Haidilao International Holding FRA:8HI +3.97% 84 ROE % is 46.88% as of Dec. 2025, which is 27% above its 10-year median of 37.02. GuruFocus rates FRA:8HI with a GF Score™ of 84/100 and a GF Value™ of €1.97 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 343 Restaurants companies, Haidilao International Holding ranks better than 91.25% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Haidilao International Holding's annualized net income for the quarter that ended in Dec. 2025 was €556 Mil. Haidilao International Holding's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was €1,185 Mil. Therefore, Haidilao International Holding's annualized ROE % for the quarter that ended in Dec. 2025 was 46.88%.

The historical rank and industry rank for Haidilao International Holding's ROE % or its related term are showing as below:

FRA:8HI' s ROE % Range Over the Past 10 Years
Min: -46.72   Med: 37.02   Max: 111.24
Current: 40.89

During the past 11 years, Haidilao International Holding's highest ROE % was 111.24%. The lowest was -46.72%. And the median was 37.02%.

FRA:8HI's ROE % is ranked better than
91.25% of 343 companies
in the Restaurants industry
Industry Median: 6.56 vs FRA:8HI: 40.89

Haidilao International Holding  (FRA:8HI) 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: Dec. 2025 )
=Net Income/Total Stockholders Equity
=555.648/1185.3405
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(555.648 / 5461.676)*(5461.676 / 2614.01)*(2614.01 / 1185.3405)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.17 %*2.0894*2.2053
=ROA %*Equity Multiplier
=21.25 %*2.2053
=46.88 %

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: Dec. 2025 )
=Net Income/Total Stockholders Equity
=555.648/1185.3405
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (555.648 / 772.31) * (772.31 / 697.88) * (697.88 / 5461.676) * (5461.676 / 2614.01) * (2614.01 / 1185.3405)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7195 * 1.1067 * 12.78 % * 2.0894 * 2.2053
=46.88 %

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.


Haidilao International Holding ROE % Related Terms


Haidilao International Holding ROE % Historical Data

* Premium members only.

The historical data trend for Haidilao International Holding'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.

Haidilao International Holding ROE % Chart

Haidilao International Holding Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -48.49 17.66 46.44 43.35 38.02

Haidilao International Holding Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 42.97 38.61 54.05 33.64 46.88

FRA:8HI vs MCD, SBUX, YUM: ROE % Comparison

For the Restaurants subindustry, Haidilao International Holding'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.


Haidilao International Holding ROE % vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Haidilao International Holding's ROE % distribution charts can be found below:

* The bar in red indicates where Haidilao International Holding's ROE % falls into.


FRA:8HI
84GF Score
Haidilao International Holding Ltd FRA:8HI
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Haidilao International Holding ROE % Calculation

Haidilao International Holding's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=491.048/( (1368.587+1214.206)/ 2 )
=491.048/1291.3965
=38.02 %

Haidilao International Holding's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Jun. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=555.648/( (1156.475+1214.206)/ 2 )
=555.648/1185.3405
=46.88 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 46.88% mean?
Haidilao International Holding (FRA:8HI) has a ROE % of 46.88% 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 Haidilao International Holding and its competitors. This is 27% above median its historical median of 37.02. According to the industry distribution chart, Haidilao International Holding ranks #30 out of 343 companies in the Restaurants industry, placing it in the top 8.7%.
Is Haidilao International Holding's ROE % too high?
Haidilao International Holding's current ROE % of 46.88% is 27% above median its 10-year median of 37.02. The Restaurants industry median ROE % is 6.56. Haidilao International Holding's value of 46.88% is 614.6% above this industry median. Based on the distribution chart, Haidilao International Holding ranks #30 out of 343 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Haidilao International Holding has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Haidilao International Holding's ROE % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Haidilao International Holding ranks #30 out of 343 companies for ROE %. This places Haidilao International Holding in the top 9% of its industry — outperforming the majority of peers. The industry median ROE % is 6.56. Haidilao International Holding's value of 46.88% is 614.6% above this benchmark. While the company's 10-year median is 37.02 vs. the industry median of 6.56, Haidilao International Holding 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 Restaurants company?
The median ROE % among Restaurants companies is 6.56, based on 343 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. Haidilao International Holding's current ROE % of 46.88% is 614.6% 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 Haidilao International Holding and its competitors. For the Restaurants industry, the median ROE % is 6.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Haidilao International Holding's current ROE % is 46.88%, which is 27% above median its own 10-year median of 37.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Haidilao International Holding stock overvalued right now?
Based on GuruFocus' analysis, Haidilao International Holding (FRA:8HI) is currently considered Significantly Undervalued. The stock's GF Value™ is €1.97, compared to a current price of €1.22 — trading 38.2% below its estimated fair value. The current ROE % is 46.88%, which is 27% above median its 10-year median of 37.02 and 614.6% above the Restaurants industry median of 6.56. Haidilao International Holding's overall GF Score™ is 84/100 with 1 warning sign 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 Haidilao International Holding (FRA:8HI), the current ROE % is 46.88% 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 Haidilao International Holding (FRA:8HI) Overvalued in 2026?

Based on GuruFocus' analysis, Haidilao International Holding stock appears to be undervalued. The current stock price of €1.22 is trading 38.2% below its estimated GF Value™ of €1.97. GuruFocus considers Haidilao International Holding to be Significantly Undervalued.

Key valuation signals for FRA:8HI:

  • ROE %: 46.88% (27% above median its 10-year median of 37.02)
  • GF Value™: €1.97 vs. price of €1.22 (38.2% below fair value)
  • GF Score™: 84/100 with 1 warning sign
  • Industry Position: 614.6% above the Restaurants median (#30 of 343)

No single metric tells the full story. See the FRA:8HI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Haidilao International Holding Business Description

Other Exchanges HDALF:USA06862:Hong Kong
Address No. 398 Yard, Zhongdong Road, 7th Floor, No. 1 Building, Dongxiaokou Town, Changping District, Beijing, CHN, 102218
Haidilao, founded in Sichuan in 1998, is a prominent Chinese hot pot restaurant operator. Following the spinoff of its international unit Super Hi, Haidilao now focuses solely on managing restaurants in Greater China.By the end of 2024, the chain operated over 1,300 stores in Greater China, generating more than CNY 40 billion in systemwide sales, making it one of the largest restaurant operators in China. The majority of its restaurants are company-owned, with only a small fraction franchised.
84GF Score

Get the complete analysis for FRA:8HI

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

€1.22
Price
€1.97
GF Value