Hong Kong and China Gas CoFRA:HCG +0.05%83 ROE % is 9.29% as of Dec. 2025, which is 6% below its 10-year median of 9.88. GuruFocus rates FRA:HCG with a GF Score™ of 83/100 and a GF Value™ of €0.68 (Fairly Valued). The stock has 7 warning signs investors should review. Among 503 Utilities - Regulated companies, Hong Kong and China Gas Co ranks better than 58.25% on this metric.
The historical rank and industry rank for Hong Kong and China Gas Co's ROE % or its related term are showing as below:
FRA:HCG'
s ROE % Range Over the Past 10 Years
Min: 7.38 Med: 9.88 Max: 15.05
Current: 9.79
During the past 13 years, Hong Kong and China Gas Co's highest ROE % was 15.05%. The lowest was 7.38%. And the median was 9.88%.
FRA:HCG's ROE % is ranked better than 58.25% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.62
vs FRA:HCG: 9.79
Hong Kong and China Gas Co (FRA:HCG) 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.
* 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 Utilities - Regulated Gas subindustry, Hong Kong and China Gas Co'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.
Hong Kong and China Gas Co ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Hong Kong and China Gas Co's ROE % distribution charts can be found below:
* The bar in red indicates where Hong Kong and China Gas Co'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 two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Hong Kong and China Gas Co (FRA:HCG) has a ROE % of 9.29% 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 Hong Kong and China Gas Co and its competitors. This is near median its historical median of 9.88. Over the past decade, Hong Kong and China Gas Co's ROE % has ranged from 7.38 to 15.05. According to the industry distribution chart, Hong Kong and China Gas Co ranks #210 out of 503 companies in the Utilities - Regulated industry, placing it in the top 41.7%.
Is Hong Kong and China Gas Co's ROE % too high?
Hong Kong and China Gas Co's current ROE % of 9.29% is near median its 10-year median of 9.88. Over the past 10 years, this metric has ranged from a low of 7.38 to a high of 15.05. The Utilities - Regulated industry median ROE % is 8.62. Hong Kong and China Gas Co's value of 9.29% is 7.8% above this industry median. Based on the distribution chart, Hong Kong and China Gas Co ranks #210 out of 503 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Hong Kong and China Gas Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hong Kong and China Gas Co's ROE % compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Hong Kong and China Gas Co ranks #210 out of 503 companies for ROE %. This puts Hong Kong and China Gas Co in the upper half of its industry. The industry median ROE % is 8.62. Hong Kong and China Gas Co's value of 9.29% is 7.8% above this benchmark. Historically, Hong Kong and China Gas Co's own ROE % has ranged from 7.38 to 15.05 over the past decade. While the company's 10-year median is 9.88 vs. the industry median of 8.62, Hong Kong and China Gas Co 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 an Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.62, based on 503 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. Hong Kong and China Gas Co's current ROE % of 9.29% is 7.8% 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 Hong Kong and China Gas Co and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Kong and China Gas Co's current ROE % is 9.29%, which is near median its own 10-year median of 9.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Kong and China Gas Co stock overvalued right now?
Based on GuruFocus' analysis, Hong Kong and China Gas Co (FRA:HCG) is currently considered Fairly Valued. The stock's GF Value™ is €0.68, compared to a current price of €0.74 — trading 8.2% above its estimated fair value. The current ROE % is 9.29%, which is near median its 10-year median of 9.88 and 7.8% above the Utilities - Regulated industry median of 8.62. Hong Kong and China Gas Co's overall GF Score™ is 83/100 with 7 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 Hong Kong and China Gas Co (FRA:HCG), the current ROE % is 9.29% 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 Hong Kong and China Gas Co (FRA:HCG) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Kong and China Gas Co stock appears to be overvalued.
The current stock price of €0.74 is trading 8.2% above its estimated GF Value™ of €0.68.
GuruFocus considers Hong Kong and China Gas Co to be Fairly Valued.
Key valuation signals for FRA:HCG:
ROE %: 9.29% (near median its 10-year median of 9.88)
GF Value™: €0.68 vs. price of €0.74 (8.2% above fair value)
Industry Position: 7.8% above the Utilities - Regulated median (#210 of 503)
No single metric tells the full story. See the FRA:HCG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Kong and China Gas Co Ltd, is the oldest public utility company in Hong Kong. The company's core business comprises the production and distribution of town gas in Hong Kong, with a monopoly on distribution and retail. The company is also investing in water, upstream gas, and new energies. The Group's principal activities are the production, distribution, and marketing of gas and related products or services, water supply and waste treatment, renewable energy businesses, extended businesses, and fuels businesses (Green Fuels) in Hong Kong and the Chinese mainland. The company operates in three segments: Gas, water and waste treatment, renewable energy, extended businesses, and related businesses, Green Fuels, and Property.
83GF Score
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