ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ITM Power's annualized net income for the quarter that ended in Oct. 2025 was €-32.48 Mil. ITM Power's average Total Stockholders Equity over the quarter that ended in Oct. 2025 was €251.89 Mil. Therefore, ITM Power's annualized ROE % for the quarter that ended in Oct. 2025 was -12.89%.
The historical rank and industry rank for ITM Power's ROE % or its related term are showing as below:
FRA:IJ8'
s ROE % Range Over the Past 10 Years
Min: -72.14 Med: -27.23 Max: -9.65
Current: -13.69
During the past 13 years, ITM Power's highest ROE % was -9.65%. The lowest was -72.14%. And the median was -27.23%.
FRA:IJ8's ROE % is ranked worse than 88.31% of 3003
companies
in the Industrial Products industry
Industry Median: 5.86
vs FRA:IJ8: -13.69
ITM Power (FRA:IJ8) 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 (Oct. 2025) net income data. The Revenue data used here is two times the semi-annual (Oct. 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.
ITM Power ROE % Related Terms
ITM Power ROE % Historical Data
* Premium members only.
The historical data trend for ITM Power'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 Specialty Industrial Machinery subindustry, ITM Power'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.
ITM Power ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, ITM Power's ROE % distribution charts can be found below:
* The bar in red indicates where ITM Power'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 (Oct. 2025) net income data.
ROE % is displayed in the 30-year financial page.
ITM Power (FRA:IJ8) has a ROE % of -12.89% as of Oct. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on ITM Power and its competitors. According to the industry distribution chart, ITM Power ranks #2652 out of 3003 companies in the Industrial Products industry, placing it in the top 88.3%.
Is ITM Power's ROE % too high?
ITM Power's current ROE % is -12.89%. Based on the distribution chart, ITM Power ranks #2652 out of 3003 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, ITM Power has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ITM Power's ROE % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, ITM Power ranks #2652 out of 3003 companies for ROE %. This places ITM Power in the lower half of its industry. The industry median ROE % is 5.86. 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 Industrial Products company?
The median ROE % among Industrial Products companies is 5.86, based on 3,003 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. 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 ITM Power and its competitors. For the Industrial Products industry, the median ROE % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ITM Power's current ROE % is -12.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITM Power stock overvalued right now?
Based on GuruFocus' analysis, ITM Power (FRA:IJ8) is currently considered Possible Value Trap. The stock's GF Value™ is €2.15, compared to a current price of €1.38 — trading 35.8% below its estimated fair value. The current ROE % is -12.89%. ITM Power's overall GF Score™ is 76/100 with 2 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 ITM Power (FRA:IJ8), the current ROE % is -12.89% as of Oct. 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 ITM Power (FRA:IJ8) Overvalued in 2026?
Based on GuruFocus' analysis, ITM Power stock appears to be undervalued.
The current stock price of €1.38 is trading 35.8% below its estimated GF Value™ of €2.15.
GuruFocus considers ITM Power to be Possible Value Trap.
Key valuation signals for FRA:IJ8:
ROE %: -12.89%
GF Value™: €2.15 vs. price of €1.38 (35.8% below fair value)
No single metric tells the full story. See the FRA:IJ8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ITM Power PLC designs and manufactures integrated hydrogen energy systems for energy storage and clean fuel production. The company is also involved in the research and development of scientific and engineering projects; the development and manufacture of prototype products; and the sale of electrolyzer products such as HGas, HFuel, HPac. It offers a range of services including construction, consulting, and other services. Its primary geographic markets are the United Kingdom, the Rest of Europe, Germany, and with maximum revenue from the United Kingdom.
76GF 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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