Grounds Real Estate Development AG (FRA:AMM) ROE %: -14.26% (As of Jun. 2025)


FRA:AMM Grounds Real Estate Development AG FRA:AMM
39 GF Score
Price €0.48
GF Value €0.14
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Grounds Real Estate Development AG ROE %?

Grounds Real Estate Development AG FRA:AMM +0.42% 39 ROE % is -14.26% as of Jun. 2025. GuruFocus rates FRA:AMM with a GF Score™ of 39/100 and a GF Value™ of €0.14 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,732 Real Estate companies, Grounds Real Estate Development AG ranks worse than 91.57% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Grounds Real Estate Development AG's annualized net income for the quarter that ended in Jun. 2025 was €-6.59 Mil. Grounds Real Estate Development AG's average Total Stockholders Equity over the quarter that ended in Jun. 2025 was €46.25 Mil. Therefore, Grounds Real Estate Development AG's annualized ROE % for the quarter that ended in Jun. 2025 was -14.26%.

The historical rank and industry rank for Grounds Real Estate Development AG's ROE % or its related term are showing as below:

FRA:AMM' s ROE % Range Over the Past 10 Years
Min: -70.91   Med: 2.31   Max: 38.6
Current: -24.31

During the past 10 years, Grounds Real Estate Development AG's highest ROE % was 38.60%. The lowest was -70.91%. And the median was 2.31%.

FRA:AMM's ROE % is ranked worse than
91.57% of 1732 companies
in the Real Estate industry
Industry Median: 3.97 vs FRA:AMM: -24.31

Grounds Real Estate Development AG  (FRA:AMM) 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: Jun. 2025 )
=Net Income/Total Stockholders Equity
=-6.594/46.247
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-6.594 / 5.848)*(5.848 / 169.13)*(169.13 / 46.247)
=Net Margin %*Asset Turnover*Equity Multiplier
=-112.76 %*0.0346*3.6571
=ROA %*Equity Multiplier
=-3.9 %*3.6571
=-14.26 %

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: Jun. 2025 )
=Net Income/Total Stockholders Equity
=-6.594/46.247
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-6.594 / -8.964) * (-8.964 / -2.156) * (-2.156 / 5.848) * (5.848 / 169.13) * (169.13 / 46.247)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7356 * 4.1577 * -36.87 % * 0.0346 * 3.6571
=-14.26 %

Note: The net income data used here is two times the semi-annual (Jun. 2025) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.


Grounds Real Estate Development AG ROE % Related Terms


Grounds Real Estate Development AG ROE % Historical Data

* Premium members only.

The historical data trend for Grounds Real Estate Development AG'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.

Grounds Real Estate Development AG ROE % Chart

Grounds Real Estate Development AG Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.44 22.80 4.60 -31.41 -32.05

Grounds Real Estate Development AG Semi-Annual Data
Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25
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 -6.50 -56.21 -66.68 -34.35 -14.26

FRA:AMM vs CBRE, BEKE, CSGP: ROE % Comparison

For the Real Estate Services subindustry, Grounds Real Estate Development AG'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.


Grounds Real Estate Development AG ROE % vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Grounds Real Estate Development AG's ROE % distribution charts can be found below:

* The bar in red indicates where Grounds Real Estate Development AG's ROE % falls into.


FRA:AMM
39GF Score
Grounds Real Estate Development AG FRA:AMM
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Grounds Real Estate Development AG ROE % Calculation

Grounds Real Estate Development AG's annualized ROE % for the fiscal year that ended in Dec. 2024 is calculated as

ROE %=Net Income (A: Dec. 2024 )/( (Total Stockholders Equity (A: Dec. 2023 )+Total Stockholders Equity (A: Dec. 2024 ))/ count )
=-10.705/( (18.685+48.125)/ 2 )
=-10.705/33.405
=-32.05 %

Grounds Real Estate Development AG's annualized ROE % for the quarter that ended in Jun. 2025 is calculated as

ROE %=Net Income (Q: Jun. 2025 )/( (Total Stockholders Equity (Q: Dec. 2024 )+Total Stockholders Equity (Q: Jun. 2025 ))/ count )
=-6.594/( (48.125+44.369)/ 2 )
=-6.594/46.247
=-14.26 %

* 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. 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 -14.26% mean?
Grounds Real Estate Development AG (FRA:AMM) has a ROE % of -14.26% as of Jun. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Grounds Real Estate Development AG and its competitors. According to the industry distribution chart, Grounds Real Estate Development AG ranks #1586 out of 1732 companies in the Real Estate industry, placing it in the top 91.6%.
Is Grounds Real Estate Development AG's ROE % too high?
Grounds Real Estate Development AG's current ROE % is -14.26%. Based on the distribution chart, Grounds Real Estate Development AG ranks #1586 out of 1732 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Grounds Real Estate Development AG has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Grounds Real Estate Development AG's ROE % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Grounds Real Estate Development AG ranks #1586 out of 1732 companies for ROE %. This places Grounds Real Estate Development AG in the lower half of its industry. The industry median ROE % is 3.97. 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 Real Estate company?
The median ROE % among Real Estate companies is 3.97, based on 1,732 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. 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 Grounds Real Estate Development AG and its competitors. For the Real Estate industry, the median ROE % is 3.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grounds Real Estate Development AG's current ROE % is -14.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grounds Real Estate Development AG stock overvalued right now?
Based on GuruFocus' analysis, Grounds Real Estate Development AG (FRA:AMM) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.14, compared to a current price of €0.48 — trading 242.9% above its estimated fair value. The current ROE % is -14.26%. Grounds Real Estate Development AG's overall GF Score™ is 39/100 with 8 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 Grounds Real Estate Development AG (FRA:AMM), the current ROE % is -14.26% as of Jun. 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 Grounds Real Estate Development AG (FRA:AMM) Overvalued in 2026?

Based on GuruFocus' analysis, Grounds Real Estate Development AG stock appears to be overvalued. The current stock price of €0.48 is trading 242.9% above its estimated GF Value™ of €0.14. GuruFocus considers Grounds Real Estate Development AG to be Significantly Overvalued.

Key valuation signals for FRA:AMM:

  • ROE %: -14.26%
  • GF Value™: €0.14 vs. price of €0.48 (242.9% above fair value)
  • GF Score™: 39/100 with 8 warning signs

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


Grounds Real Estate Development AG Business Description

Other Exchanges AMM:Germany
Address Charlottenstrasse 79-80, Berlin, BB, DEU, 10117
Grounds Real Estate Development AG carries out housing projects in German metropolitan regions. Its business activities cover three core areas, including the company's plan to establish its property portfolio for long-term rental income, which is referred to as the portfolio management business. the company also works to develop the existing properties and sell them as part-ownership, known as the privatization business. Additionally, planning to construct new housing and sell it to institutional investors, capital investors, and owner-occupiers. This is referred to as the project development business. The group's primary sources of income are the construction work on project developments, privatization income, and rental income from existing properties.
39GF Score

Get the complete analysis for FRA:AMM

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

€0.48
Price
€0.14
GF Value