VTech HoldingsFRA:VTCB 79 ROE % is 18.93% as of Mar. 2026, which is 29% below its 10-year median of 26.67. GuruFocus rates FRA:VTCB with a GF Score™ of 79/100 and a GF Value™ of €5.57 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,426 Hardware companies, VTech Holdings ranks better than 91.18% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. VTech Holdings's annualized net income for the quarter that ended in Mar. 2026 was €103 Mil. VTech Holdings's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €543 Mil. Therefore, VTech Holdings's annualized ROE % for the quarter that ended in Mar. 2026 was 18.93%.
The historical rank and industry rank for VTech Holdings's ROE % or its related term are showing as below:
FRA:VTCB'
s ROE % Range Over the Past 10 Years
Min: 20.84 Med: 26.67 Max: 34.65
Current: 21.1
During the past 13 years, VTech Holdings's highest ROE % was 34.65%. The lowest was 20.84%. And the median was 26.67%.
FRA:VTCB's ROE % is ranked better than 91.18% of 2426
companies
in the Hardware industry
Industry Median: 4.59
vs FRA:VTCB: 21.10
VTech Holdings (FRA:VTCB) 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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
VTech Holdings ROE % Related Terms
VTech Holdings ROE % Historical Data
* Premium members only.
The historical data trend for VTech Holdings'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, VTech Holdings'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.
VTech Holdings ROE % vs Hardware Industry
For the Hardware industry and Technology sector, VTech Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where VTech Holdings'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
VTech Holdings (FRA:VTCB) has a ROE % of 18.93% 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 VTech Holdings and its competitors. This is 29% below median its historical median of 26.67. Over the past decade, VTech Holdings' ROE % has ranged from 20.84 to 34.65. According to the industry distribution chart, VTech Holdings ranks #214 out of 2426 companies in the Hardware industry, placing it in the top 8.8%.
Is VTech Holdings' ROE % too high?
VTech Holdings' current ROE % of 18.93% is 29% below median its 10-year median of 26.67. Over the past 10 years, this metric has ranged from a low of 20.84 to a high of 34.65. The Hardware industry median ROE % is 4.59. VTech Holdings' value of 18.93% is 312.4% above this industry median. Based on the distribution chart, VTech Holdings ranks #214 out of 2426 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, VTech Holdings has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does VTech Holdings' ROE % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, VTech Holdings ranks #214 out of 2426 companies for ROE %. This places VTech Holdings in the top 9% of its industry — outperforming the majority of peers. The industry median ROE % is 4.59. VTech Holdings' value of 18.93% is 312.4% above this benchmark. Historically, VTech Holdings' own ROE % has ranged from 20.84 to 34.65 over the past decade. While the company's 10-year median is 26.67 vs. the industry median of 4.59, VTech Holdings 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 4.59, based on 2,426 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. VTech Holdings's current ROE % of 18.93% is 312.4% 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 VTech Holdings and its competitors. For the Hardware industry, the median ROE % is 4.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VTech Holdings's current ROE % is 18.93%, which is 29% below median its own 10-year median of 26.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VTech Holdings stock overvalued right now?
Based on GuruFocus' analysis, VTech Holdings (FRA:VTCB) is currently considered Fairly Valued. The stock's GF Value™ is €5.57, compared to a current price of €5.60 — trading 0.5% above its estimated fair value. The current ROE % is 18.93%, which is 29% below median its 10-year median of 26.67 and 312.4% above the Hardware industry median of 4.59. VTech Holdings' overall GF Score™ is 79/100 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 VTech Holdings (FRA:VTCB), the current ROE % is 18.93% 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 VTech Holdings (FRA:VTCB) Overvalued in 2026?
Based on GuruFocus' analysis, VTech Holdings stock appears to be overvalued.
The current stock price of €5.60 is trading 0.5% above its estimated GF Value™ of €5.57.
GuruFocus considers VTech Holdings to be Fairly Valued.
Key valuation signals for FRA:VTCB:
ROE %: 18.93% (29% below median its 10-year median of 26.67)
GF Value™: €5.57 vs. price of €5.60 (0.5% above fair value)
Industry Position: 312.4% above the Hardware median (#214 of 2426)
No single metric tells the full story. See the FRA:VTCB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
VTech Holdings Ltd is engaged in the designing, manufacturing, and distribution of consumer electronic products. It also provides contract manufacturing services. The company's diverse collection of products includes Telephone Products, Business Phones, Electronic Learning Toys, Baby Monitors, and Hospitality Products. In addition, it offers turnkey services to customers in several product categories. The company operates through four reportable segments: North America, (including the United States and Canada), Europe, Asia Pacific, and Others, which covers sales of electronic products to the rest of the world. It generates maximum revenue from Europe.
79GF Score
Get the complete analysis for FRA:VTCB
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:VTCB has been successfully added to your 
