FRA:AXF1's ROE % is ranked better than 79.01% of 991
companies
in the Transportation industry
Industry Median: 7.62
vs FRA:AXF1: 15.86
Construcciones y Auxiliar de Ferrocarriles (FRA:AXF1) 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.
Construcciones y Auxiliar de Ferrocarriles ROE % Related Terms
Construcciones y Auxiliar de Ferrocarriles 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.
Construcciones y Auxiliar de Ferrocarriles ROE % Chart
Construcciones y Auxiliar de Ferrocarriles Annual Data
* 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.
Construcciones y Auxiliar de Ferrocarriles ROE % vs Transportation Industry
* 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.
Construcciones y Auxiliar de Ferrocarriles (FRA:AXF1) has a ROE % of 15.54% 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 Construcciones y Auxiliar de Ferrocarriles and its competitors. This is 144% above median its historical median of 6.37. Over the past decade, Construcciones y Auxiliar de Ferrocarriles' ROE % has ranged from 1.32 to 15.86. According to the industry distribution chart, Construcciones y Auxiliar de Ferrocarriles ranks #208 out of 991 companies in the Transportation industry, placing it in the top 21%.
Is Construcciones y Auxiliar de Ferrocarriles' ROE % too high?
Construcciones y Auxiliar de Ferrocarriles' current ROE % of 15.54% is 144% above median its 10-year median of 6.37. Over the past 10 years, this metric has ranged from a low of 1.32 to a high of 15.86. The Transportation industry median ROE % is 7.62. Construcciones y Auxiliar de Ferrocarriles' value of 15.54% is 103.9% above this industry median. Based on the distribution chart, Construcciones y Auxiliar de Ferrocarriles ranks #208 out of 991 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Construcciones y Auxiliar de Ferrocarriles has a GF Score™ of 95/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Construcciones y Auxiliar de Ferrocarriles' ROE % compare to UNP and CSX?
According to the Transportation industry distribution chart, Construcciones y Auxiliar de Ferrocarriles ranks #208 out of 991 companies for ROE %. This places Construcciones y Auxiliar de Ferrocarriles in the top 21% of its industry — outperforming the majority of peers. The industry median ROE % is 7.62. Construcciones y Auxiliar de Ferrocarriles' value of 15.54% is 103.9% above this benchmark. Historically, Construcciones y Auxiliar de Ferrocarriles' own ROE % has ranged from 1.32 to 15.86 over the past decade. While the company's 10-year median is 6.37 vs. the industry median of 7.62, Construcciones y Auxiliar de Ferrocarriles 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 Transportation company?
The median ROE % among Transportation companies is 7.62, based on 991 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. Construcciones y Auxiliar de Ferrocarriles's current ROE % of 15.54% is 103.9% 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 Construcciones y Auxiliar de Ferrocarriles and its competitors. For the Transportation industry, the median ROE % is 7.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Construcciones y Auxiliar de Ferrocarriles's current ROE % is 15.54%, which is 144% above median its own 10-year median of 6.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Construcciones y Auxiliar de Ferrocarriles stock overvalued right now?
Based on GuruFocus' analysis, Construcciones y Auxiliar de Ferrocarriles (FRA:AXF1) is currently considered Significantly Overvalued. The stock's GF Value™ is €42.20, compared to a current price of €62.30 — trading 47.6% above its estimated fair value. The current ROE % is 15.54%, which is 144% above median its 10-year median of 6.37 and 103.9% above the Transportation industry median of 7.62. Construcciones y Auxiliar de Ferrocarriles' overall GF Score™ is 95/100 with 4 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 Construcciones y Auxiliar de Ferrocarriles (FRA:AXF1), the current ROE % is 15.54% 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 Construcciones y Auxiliar de Ferrocarriles (FRA:AXF1) Overvalued in 2026?
Based on GuruFocus' analysis, Construcciones y Auxiliar de Ferrocarriles stock appears to be overvalued.
The current stock price of €62.30 is trading 47.6% above its estimated GF Value™ of €42.20.
GuruFocus considers Construcciones y Auxiliar de Ferrocarriles to be Significantly Overvalued.
Key valuation signals for FRA:AXF1:
ROE %: 15.54% (144% above median its 10-year median of 6.37)
GF Value™: €42.20 vs. price of €62.30 (47.6% above fair value)
Industry Position: 103.9% above the Transportation median (#208 of 991)
No single metric tells the full story. See the FRA:AXF1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Construcciones y Auxiliar de Ferrocarriles Business Description
Construcciones y Auxiliar de Ferrocarriles SA is a Spain-based company that offers comprehensive railway solutions. The company's train-related products comprise high-speed rolling stock, wheelsets, traction and communication systems, signaling systems, and related services including vehicle maintenance, vehicle upgrading and refurbishment, and aftersales technical supports. In addition to supplying train-related products, the company also helps customers conduct viability studies, civil work, electrification projects, and system operation. The company operates under concession or turnkey models. Construcciones y Auxiliar de Ferrocarriles has a global presence, with Europe and Brazil being the two largest markets.
95GF Score
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