FRA:HSG'
s ROE % Range Over the Past 10 Years
Min: -5.11 Med: 0.65 Max: 3.17
Current: 0.9
During the past 13 years, The Hongkong and Shanghai Hotels's highest ROE % was 3.17%. The lowest was -5.11%. And the median was 0.65%.
FRA:HSG's ROE % is ranked worse than 66.79% of 822
companies
in the Travel & Leisure industry
Industry Median: 5.485
vs FRA:HSG: 0.90
The Hongkong and Shanghai Hotels (FRA:HSG) 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.
The Hongkong and Shanghai Hotels ROE % Related Terms
The Hongkong and Shanghai Hotels 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 Lodging subindustry, The Hongkong and Shanghai Hotels'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.
The Hongkong and Shanghai Hotels ROE % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, The Hongkong and Shanghai Hotels's ROE % distribution charts can be found below:
* The bar in red indicates where The Hongkong and Shanghai Hotels'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.
The Hongkong and Shanghai Hotels (FRA:HSG) has a ROE % of 3.39% 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 The Hongkong and Shanghai Hotels and its competitors. This is 422% above median its historical median of 0.65. According to the industry distribution chart, The Hongkong and Shanghai Hotels ranks #549 out of 822 companies in the Travel & Leisure industry, placing it in the top 66.8%.
Is The Hongkong and Shanghai Hotels' ROE % too high?
The Hongkong and Shanghai Hotels' current ROE % of 3.39% is 422% above median its 10-year median of 0.65. The Travel & Leisure industry median ROE % is 5.49. The Hongkong and Shanghai Hotels' value of 3.39% is 38.2% below this industry median. Based on the distribution chart, The Hongkong and Shanghai Hotels ranks #549 out of 822 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, The Hongkong and Shanghai Hotels has a GF Score™ of 48/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Hongkong and Shanghai Hotels' ROE % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, The Hongkong and Shanghai Hotels ranks #549 out of 822 companies for ROE %. This places The Hongkong and Shanghai Hotels in the lower half of its industry. The industry median ROE % is 5.49. The Hongkong and Shanghai Hotels' value of 3.39% is 38.2% below this benchmark. While the company's 10-year median is 0.65 vs. the industry median of 5.49, The Hongkong and Shanghai Hotels 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 Travel & Leisure company?
The median ROE % among Travel & Leisure companies is 5.49, based on 822 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. The Hongkong and Shanghai Hotels's current ROE % of 3.39% is 38.2% 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 The Hongkong and Shanghai Hotels and its competitors. For the Travel & Leisure industry, the median ROE % is 5.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hongkong and Shanghai Hotels's current ROE % is 3.39%, which is 422% above median its own 10-year median of 0.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Hongkong and Shanghai Hotels stock overvalued right now?
Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels (FRA:HSG) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.63, compared to a current price of €0.57 — trading 10.3% below its estimated fair value. The current ROE % is 3.39%, which is 422% above median its 10-year median of 0.65 and 38.2% below the Travel & Leisure industry median of 5.49. The Hongkong and Shanghai Hotels' overall GF Score™ is 48/100 with 3 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 The Hongkong and Shanghai Hotels (FRA:HSG), the current ROE % is 3.39% 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 The Hongkong and Shanghai Hotels (FRA:HSG) Overvalued in 2026?
Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels stock appears to be undervalued.
The current stock price of €0.57 is trading 10.3% below its estimated GF Value™ of €0.63.
GuruFocus considers The Hongkong and Shanghai Hotels to be Modestly Undervalued.
Key valuation signals for FRA:HSG:
ROE %: 3.39% (422% above median its 10-year median of 0.65)
GF Value™: €0.63 vs. price of €0.57 (10.3% below fair value)
Industry Position: 38.2% below the Travel & Leisure median (#549 of 822)
No single metric tells the full story. See the FRA:HSG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Hongkong and Shanghai Hotels Business Description
The Hongkong and Shanghai Hotels Ltd is a luxury hospitality and real estate group. It owns and operates hotel properties under the Peninsula brand located in city centres across Asia, the U.S., and Europe. The company's assets comprise a small number of ultra-luxury hotels, real estate assets, and tourism assets, including The Peak Tram, one of Hong Kong's tourist attractions. The group's reportable segments are: Hotels, Commercial Properties, Peak Tram, Retail, and Others. Maximum revenue is generated from its Hotels segment, which includes revenue generated from operating hotels, leasing of commercial shopping arcades, and office premises located within the hotel buildings. Geographically, the group generates the majority of its revenue from Greater China.
48GF Score
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ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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