ZTEFRA:FZM -9.16%82 ROE % is 7.00% as of Mar. 2026, which is 45% below its 10-year median of 12.69. GuruFocus rates FRA:FZM with a GF Score™ of 82/100 and a GF Value™ of €2.62 (Fairly Valued). The stock has 6 warning signs investors should review. Among 2,423 Hardware companies, ZTE ranks better than 55.3% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ZTE's annualized net income for the quarter that ended in Mar. 2026 was €658 Mil. ZTE's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €9,393 Mil. Therefore, ZTE's annualized ROE % for the quarter that ended in Mar. 2026 was 7.00%.
The historical rank and industry rank for ZTE's ROE % or its related term are showing as below:
FRA:FZM'
s ROE % Range Over the Past 10 Years
Min: -19.01 Med: 12.69 Max: 17.12
Current: 5.98
During the past 13 years, ZTE's highest ROE % was 17.12%. The lowest was -19.01%. And the median was 12.69%.
FRA:FZM's ROE % is ranked better than 55.3% of 2423
companies
in the Hardware industry
Industry Median: 4.61
vs FRA:FZM: 5.98
ZTE (FRA:FZM) 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 (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) 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.
ZTE ROE % Related Terms
ZTE ROE % Historical Data
* Premium members only.
The historical data trend for ZTE'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.
For the Communication Equipment subindustry, ZTE'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.
ZTE ROE % vs Hardware Industry
For the Hardware industry and Technology sector, ZTE's ROE % distribution charts can be found below:
* The bar in red indicates where ZTE'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 four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
ZTE (FRA:FZM) has a ROE % of 7.00% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on ZTE and its competitors. This is 45% below median its historical median of 12.69. According to the industry distribution chart, ZTE ranks #1083 out of 2423 companies in the Hardware industry, placing it in the top 44.7%.
Is ZTE's ROE % too high?
ZTE's current ROE % of 7.00% is 45% below median its 10-year median of 12.69. The Hardware industry median ROE % is 4.61. ZTE's value of 7.00% is 51.8% above this industry median. Based on the distribution chart, ZTE ranks #1083 out of 2423 companies in the Hardware industry, which is above the industry midpoint. Overall, ZTE has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ZTE's ROE % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, ZTE ranks #1083 out of 2423 companies for ROE %. This puts ZTE in the upper half of its industry. The industry median ROE % is 4.61. ZTE's value of 7.00% is 51.8% above this benchmark. While the company's 10-year median is 12.69 vs. the industry median of 4.61, ZTE 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 Hardware company?
The median ROE % among Hardware companies is 4.61, based on 2,423 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. ZTE's current ROE % of 7.00% is 51.8% 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 ZTE and its competitors. For the Hardware industry, the median ROE % is 4.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZTE's current ROE % is 7.00%, which is 45% below median its own 10-year median of 12.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZTE stock overvalued right now?
Based on GuruFocus' analysis, ZTE (FRA:FZM) is currently considered Fairly Valued. The stock's GF Value™ is €2.62, compared to a current price of €2.51 — trading 4.2% below its estimated fair value. The current ROE % is 7.00%, which is 45% below median its 10-year median of 12.69 and 51.8% above the Hardware industry median of 4.61. ZTE's overall GF Score™ is 82/100 with 6 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 ZTE (FRA:FZM), the current ROE % is 7.00% as of Mar. 2026. 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 ZTE (FRA:FZM) Overvalued in 2026?
Based on GuruFocus' analysis, ZTE stock appears to be undervalued.
The current stock price of €2.51 is trading 4.2% below its estimated GF Value™ of €2.62.
GuruFocus considers ZTE to be Fairly Valued.
Key valuation signals for FRA:FZM:
ROE %: 7.00% (45% below median its 10-year median of 12.69)
GF Value™: €2.62 vs. price of €2.51 (4.2% below fair value)
Industry Position: 51.8% above the Hardware median (#1083 of 2423)
No single metric tells the full story. See the FRA:FZM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ZTE Corp is a provider of integrated telecommunications and IT solutions with a full range of end-to-end ICT products and solutions integrating design, development, production, sales, and services with a special focus on carriers networks, government and corporate business, and consumer business. It operates in three segments Carriers network, Consumer Business, and Government and Corporate Business. It generates a majority of its revenue from equipment supporting carriers' networks. It has a presence in the PRC, Asia, Africa, Europe, and the Americas. It generates the majority of its revenue from the PRC region.
82GF Score
Get the complete analysis for FRA:FZM
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:FZM has been successfully added to your 
