China East Education Holdings (FRA:ZX3) ROE %: 11.88% (As of Dec. 2025) — Near Median


FRA:ZX3 China East Education Holdings Ltd FRA:ZX3
49 GF Score
Price €0.45
GF Value €0.41
Valuation Fairly Valued
! 2 Warning Signs
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What is China East Education Holdings ROE %?

China East Education Holdings FRA:ZX3 +2.29% 49 ROE % is 11.88% as of Dec. 2025, which is 9% above its 10-year median of 10.92. GuruFocus rates FRA:ZX3 with a GF Score™ of 49/100 and a GF Value™ of €0.41 (Fairly Valued). The stock has 2 warning signs investors should review. Among 259 Education companies, China East Education Holdings ranks better than 65.25% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. China East Education Holdings's annualized net income for the quarter that ended in Dec. 2025 was €85.6 Mil. China East Education Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was €721.1 Mil. Therefore, China East Education Holdings's annualized ROE % for the quarter that ended in Dec. 2025 was 11.88%.

The historical rank and industry rank for China East Education Holdings's ROE % or its related term are showing as below:

FRA:ZX3' s ROE % Range Over the Past 10 Years
Min: 4.37   Med: 10.92   Max: 53.09
Current: 12.95

During the past 10 years, China East Education Holdings's highest ROE % was 53.09%. The lowest was 4.37%. And the median was 10.92%.

FRA:ZX3's ROE % is ranked better than
65.25% of 259 companies
in the Education industry
Industry Median: 7.31 vs FRA:ZX3: 12.95

China East Education Holdings  (FRA:ZX3) 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:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=85.638/721.1225
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(85.638 / 589.198)*(589.198 / 1212.7075)*(1212.7075 / 721.1225)
=Net Margin %*Asset Turnover*Equity Multiplier
=14.53 %*0.4859*1.6817
=ROA %*Equity Multiplier
=7.06 %*1.6817
=11.88 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=85.638/721.1225
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (85.638 / 108.902) * (108.902 / 81.282) * (81.282 / 589.198) * (589.198 / 1212.7075) * (1212.7075 / 721.1225)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7864 * 1.3398 * 13.8 % * 0.4859 * 1.6817
=11.88 %

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.


China East Education Holdings ROE % Related Terms


China East Education Holdings ROE % Historical Data

* Premium members only.

The historical data trend for China East Education 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.

China East Education Holdings ROE % Chart

China East Education Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.40 6.35 4.70 9.12 12.22

China East Education Holdings Semi-Annual Data
Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.47 9.77 8.68 13.42 11.88

FRA:ZX3 vs EDU, TAL, LAUR: ROE % Comparison

For the Education & Training Services subindustry, China East Education 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.


China East Education Holdings ROE % vs Education Industry

For the Education industry and Consumer Defensive sector, China East Education Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where China East Education Holdings's ROE % falls into.


FRA:ZX3
49GF Score
China East Education Holdings Ltd FRA:ZX3
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China East Education Holdings ROE % Calculation

China East Education Holdings's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=91.677/( (754.15+746.006)/ 2 )
=91.677/750.078
=12.22 %

China East Education Holdings's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Jun. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=85.638/( (696.239+746.006)/ 2 )
=85.638/721.1225
=11.88 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 11.88% mean?
China East Education Holdings (FRA:ZX3) has a ROE % of 11.88% 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 China East Education Holdings and its competitors. This is near median its historical median of 10.92. Over the past decade, China East Education Holdings' ROE % has ranged from 4.37 to 53.09. According to the industry distribution chart, China East Education Holdings ranks #90 out of 259 companies in the Education industry, placing it in the top 34.7%.
Is China East Education Holdings' ROE % too high?
China East Education Holdings' current ROE % of 11.88% is near median its 10-year median of 10.92. Over the past 10 years, this metric has ranged from a low of 4.37 to a high of 53.09. The Education industry median ROE % is 7.31. China East Education Holdings' value of 11.88% is 62.5% above this industry median. Based on the distribution chart, China East Education Holdings ranks #90 out of 259 companies in the Education industry, which is above the industry midpoint. Overall, China East Education Holdings has a GF Score™ of 49/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China East Education Holdings' ROE % compare to EDU and TAL?
According to the Education industry distribution chart, China East Education Holdings ranks #90 out of 259 companies for ROE %. This puts China East Education Holdings in the upper half of its industry. The industry median ROE % is 7.31. China East Education Holdings' value of 11.88% is 62.5% above this benchmark. Historically, China East Education Holdings' own ROE % has ranged from 4.37 to 53.09 over the past decade. While the company's 10-year median is 10.92 vs. the industry median of 7.31, China East Education 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 an Education company?
The median ROE % among Education companies is 7.31, based on 259 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. China East Education Holdings's current ROE % of 11.88% is 62.5% 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 China East Education Holdings and its competitors. For the Education industry, the median ROE % is 7.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China East Education Holdings's current ROE % is 11.88%, which is near median its own 10-year median of 10.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China East Education Holdings stock overvalued right now?
Based on GuruFocus' analysis, China East Education Holdings (FRA:ZX3) is currently considered Fairly Valued. The stock's GF Value™ is €0.41, compared to a current price of €0.45 — trading 8.8% above its estimated fair value. The current ROE % is 11.88%, which is near median its 10-year median of 10.92 and 62.5% above the Education industry median of 7.31. China East Education Holdings' overall GF Score™ is 49/100 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 China East Education Holdings (FRA:ZX3), the current ROE % is 11.88% 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 China East Education Holdings (FRA:ZX3) Overvalued in 2026?

Based on GuruFocus' analysis, China East Education Holdings stock appears to be overvalued. The current stock price of €0.45 is trading 8.8% above its estimated GF Value™ of €0.41. GuruFocus considers China East Education Holdings to be Fairly Valued.

Key valuation signals for FRA:ZX3:

  • ROE %: 11.88% (near median its 10-year median of 10.92)
  • GF Value™: €0.41 vs. price of €0.45 (8.8% above fair value)
  • GF Score™: 49/100 with 2 warning signs
  • Industry Position: 62.5% above the Education median (#90 of 259)

No single metric tells the full story. See the FRA:ZX3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


China East Education Holdings Business Description

Other Exchanges 00667:Hong Kong
Address No. 1009 Xuelin Road, Vocational Education Town, Yaohai District, Anhui Province, Hefei, CHN
China East Education is the largest vocational training education provider in China in terms of average students enrolled. It was founded in 1988 and its business spans four segments: culinary arts, information & internet technology, auto services, and fashion & beauty. The company's on-campus student population exceeded 150,000 as of June 30, 2025. In 2024, China East Education's revenue breakdown by major businesses was 55% in culinary arts, 19% in information & internet technology, 22% in auto services.
49GF Score

Get the complete analysis for FRA:ZX3

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€0.45
Price
€0.41
GF Value