Grafton GroupGROUF ROE % is 8.27% as of Dec. 2025, which is 9% below its 10-year median of 9.08. The stock has 3 warning signs investors should review.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Grafton Group's annualized net income for the quarter that ended in Dec. 2025 was $182 Mil. Grafton Group's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was $2,196 Mil. Therefore, Grafton Group's annualized ROE % for the quarter that ended in Dec. 2025 was 8.27%.
The historical rank and industry rank for Grafton Group's ROE % or its related term are showing as below:
GROUF'
s ROE % Range Over the Past 10 Years
Min: 3.87 Med: 9.08 Max: 21.42
Current: 12.87
During the past 13 years, Grafton Group's highest ROE % was 21.42%. The lowest was 3.87%. And the median was 9.08%.
GROUF's ROE % is not ranked
in the Industrial Distribution industry.
Industry Median: 7.235
vs GROUF: 12.87
Grafton Group (OTCPK:GROUF) 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.
Grafton Group ROE % Related Terms
Grafton Group ROE % Historical Data
* Premium members only.
The historical data trend for Grafton Group'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 Industrial Distribution subindustry, Grafton Group'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.
Grafton Group ROE % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Grafton Group's ROE % distribution charts can be found below:
* The bar in red indicates where Grafton Group'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.
Grafton Group (GROUF) has a ROE % of 8.27% 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 Grafton Group and its competitors. This is near median its historical median of 9.08. Over the past decade, Grafton Group's ROE % has ranged from 3.87 to 21.42.
Is Grafton Group's ROE % too high?
Grafton Group's current ROE % of 8.27% is near median its 10-year median of 9.08. Over the past 10 years, this metric has ranged from a low of 3.87 to a high of 21.42. The Industrial Distribution industry median ROE % is 7.24. Grafton Group's value of 8.27% is 14.3% above this industry median.
How does Grafton Group's ROE % compare to FAST and GWW?
Grafton Group's ROE % of 8.27% can be compared against companies in the Industrial Distribution industry. The industry median ROE % is 7.24. Grafton Group's value of 8.27% is 14.3% above this benchmark. Historically, Grafton Group's own ROE % has ranged from 3.87 to 21.42 over the past decade. While the company's 10-year median is 9.08 vs. the industry median of 7.24, Grafton Group 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 Industrial Distribution company?
The median ROE % among Industrial Distribution companies is 7.24, based on 156 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. Grafton Group's current ROE % of 8.27% is 14.3% 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 Grafton Group and its competitors. For the Industrial Distribution industry, the median ROE % is 7.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grafton Group's current ROE % is 8.27%, which is near median its own 10-year median of 9.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grafton Group stock overvalued right now?
Based on GuruFocus' analysis, Grafton Group (GROUF) is currently considered Modestly Overvalued. The stock's GF Value™ is $9.59, compared to a current price of $11.05 — trading 15.2% above its estimated fair value. The current ROE % is 8.27%, which is near median its 10-year median of 9.08 and 14.3% above the Industrial Distribution industry median of 7.24. 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 Grafton Group (GROUF), the current ROE % is 8.27% 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.
Grafton Group PLC is a distributor of building materials that operates in three segments; The Distribution segment is into the distribution of building and plumbing materials to professional tradespeople engaged in residential repair, maintenance, and improvement projects and also in residential and other new build construction, The Retailing segment operates DIY and home improvement business from a network of stores that supply mainly retail customers with wide products for DIY and for the home and garden, and The Manufacturing segment is into the manufacture of dry mortar in Great Britain. The company also operates in residential and other new build construction. Geographically, the company generates over half of its revenue from the United Kingdom.
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