FRA:FCC's ROE % is ranked better than 50% of 234
companies
in the Waste Management industry
Industry Median: 4.675
vs FRA:FCC: 4.71
Fomento de Construcciones y Contratas (FRA:FCC) 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 four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (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.
Fomento de Construcciones y Contratas ROE % Related Terms
Fomento de Construcciones y Contratas 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 Waste Management subindustry, Fomento de Construcciones y Contratas'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.
Fomento de Construcciones y Contratas ROE % vs Waste Management 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 four times the quarterly (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Fomento de Construcciones y Contratas (FRA:FCC) has a ROE % of 0.83% 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 Fomento de Construcciones y Contratas and its competitors. This is 94% below median its historical median of 13.29. According to the industry distribution chart, Fomento de Construcciones y Contratas ranks #117 out of 234 companies in the Waste Management industry, placing it in the top 50%.
Is Fomento de Construcciones y Contratas' ROE % too high?
Fomento de Construcciones y Contratas' current ROE % of 0.83% is 94% below median its 10-year median of 13.29. The Waste Management industry median ROE % is 4.68. Fomento de Construcciones y Contratas' value of 0.83% is 82.2% below this industry median. Based on the distribution chart, Fomento de Construcciones y Contratas ranks #117 out of 234 companies in the Waste Management industry, which is above the industry midpoint. Overall, Fomento de Construcciones y Contratas has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fomento de Construcciones y Contratas' ROE % compare to WM and RSG?
According to the Waste Management industry distribution chart, Fomento de Construcciones y Contratas ranks #117 out of 234 companies for ROE %. This puts Fomento de Construcciones y Contratas in the upper half of its industry. The industry median ROE % is 4.68. Fomento de Construcciones y Contratas' value of 0.83% is 82.2% below this benchmark. While the company's 10-year median is 13.29 vs. the industry median of 4.68, Fomento de Construcciones y Contratas 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 Waste Management company?
The median ROE % among Waste Management companies is 4.68, based on 234 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. Fomento de Construcciones y Contratas's current ROE % of 0.83% is 82.2% 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 Fomento de Construcciones y Contratas and its competitors. For the Waste Management industry, the median ROE % is 4.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fomento de Construcciones y Contratas's current ROE % is 0.83%, which is 94% below median its own 10-year median of 13.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fomento de Construcciones y Contratas stock overvalued right now?
Based on GuruFocus' analysis, Fomento de Construcciones y Contratas (FRA:FCC) is currently considered Modestly Overvalued. The stock's GF Value™ is €10.67, compared to a current price of €12.12 — trading 13.6% above its estimated fair value. The current ROE % is 0.83%, which is 94% below median its 10-year median of 13.29 and 82.2% below the Waste Management industry median of 4.68. Fomento de Construcciones y Contratas' overall GF Score™ is 73/100 with 9 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 Fomento de Construcciones y Contratas (FRA:FCC), the current ROE % is 0.83% 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 Fomento de Construcciones y Contratas (FRA:FCC) Overvalued in 2026?
Based on GuruFocus' analysis, Fomento de Construcciones y Contratas stock appears to be overvalued.
The current stock price of €12.12 is trading 13.6% above its estimated GF Value™ of €10.67.
GuruFocus considers Fomento de Construcciones y Contratas to be Modestly Overvalued.
Key valuation signals for FRA:FCC:
ROE %: 0.83% (94% below median its 10-year median of 13.29)
GF Value™: €10.67 vs. price of €12.12 (13.6% above fair value)
Industry Position: 82.2% below the Waste Management median (#117 of 234)
No single metric tells the full story. See the FRA:FCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fomento de Construcciones y Contratas Business Description
Fomento de Construcciones y Contratas SA is in the business of environmental services, end to end water management, construction and cement. The company's activities include services related to urban water treatment, waste recovery, end to end water cycle and also infrastructure construction projects, building construction, manufacturing of cement and concrete and operation of quarries and mineral deposits. The firm derives majority of its revenues from environmental services segment. It carries out international operations in European, the US and Latin American markets.
73GF Score
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