GUOTF's ROE % is ranked better than 59.67% of 791
companies
in the Capital Markets industry
Industry Median: 6
vs GUOTF: 8.73
Guotai Junan International Holdings (OTCPK:GUOTF) 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.
Guotai Junan International Holdings ROE % Related Terms
Guotai Junan International Holdings 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 Capital Markets subindustry, Guotai Junan International 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.
Guotai Junan International Holdings ROE % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Guotai Junan International Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Guotai Junan International 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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Guotai Junan International Holdings (GUOTF) has a ROE % of 10.21% 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 Guotai Junan International Holdings and its competitors. This is 30% above median its historical median of 7.85. Over the past decade, Guotai Junan International Holdings' ROE % has ranged from 0.53 to 12.42. According to the industry distribution chart, Guotai Junan International Holdings ranks #319 out of 791 companies in the Capital Markets industry, placing it in the top 40.3%.
Is Guotai Junan International Holdings' ROE % too high?
Guotai Junan International Holdings' current ROE % of 10.21% is 30% above median its 10-year median of 7.85. Over the past 10 years, this metric has ranged from a low of 0.53 to a high of 12.42. The Capital Markets industry median ROE % is 6.00. Guotai Junan International Holdings' value of 10.21% is 70.2% above this industry median. Based on the distribution chart, Guotai Junan International Holdings ranks #319 out of 791 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Guotai Junan International Holdings has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Guotai Junan International Holdings' ROE % compare to MS and GS?
According to the Capital Markets industry distribution chart, Guotai Junan International Holdings ranks #319 out of 791 companies for ROE %. This puts Guotai Junan International Holdings in the upper half of its industry. The industry median ROE % is 6.00. Guotai Junan International Holdings' value of 10.21% is 70.2% above this benchmark. Historically, Guotai Junan International Holdings' own ROE % has ranged from 0.53 to 12.42 over the past decade. While the company's 10-year median is 7.85 vs. the industry median of 6.00, Guotai Junan International 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 Capital Markets company?
The median ROE % among Capital Markets companies is 6.00, based on 791 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. Guotai Junan International Holdings's current ROE % of 10.21% is 70.2% 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 Guotai Junan International Holdings and its competitors. For the Capital Markets industry, the median ROE % is 6.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guotai Junan International Holdings's current ROE % is 10.21%, which is 30% above median its own 10-year median of 7.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guotai Junan International Holdings stock overvalued right now?
Guotai Junan International Holdings (GUOTF) has a current ROE % of 10.21%. The stock's GF Value™ is $0.30, compared to a current price of $0.33 — trading 10% above its estimated fair value. The current ROE % is 10.21%, which is 30% above median its 10-year median of 7.85 and 70.2% above the Capital Markets industry median of 6.00. Guotai Junan International Holdings' overall GF Score™ is 79/100 with 8 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 Guotai Junan International Holdings (GUOTF), the current ROE % is 10.21% 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 Guotai Junan International Holdings (GUOTF) Overvalued in 2026?
Based on GuruFocus' analysis, Guotai Junan International Holdings stock appears to be overvalued.
The current stock price of $0.33 is trading 10% above its estimated GF Value™ of $0.30.
Key valuation signals for GUOTF:
ROE %: 10.21% (30% above median its 10-year median of 7.85)
GF Value™: $0.30 vs. price of $0.33 (10% above fair value)
Industry Position: 70.2% above the Capital Markets median (#319 of 791)
No single metric tells the full story. See the GUOTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guotai Junan International Holdings Business Description
Guotai Junan International Holdings Ltd is an investment holding company engaged in a range of financial services. Its operating segments comprise Wealth Management, which provides brokerage, margin financing, and related services to individuals, SMEs, and family offices; Institutional Investor Services, which include market making, structured products, and financing solutions for corporations and financial institutions; Corporate Finance Services, which offer advisory, placing, and underwriting services for debt and equity securities; Investment Management, which provides asset and fund management along with investments in financial instruments; and Others, which mainly includes rental income and information channel services. The Company derives the majority of its revenue from Hong Kong.
79GF Score
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