Lynas Rare EarthsHAM:LYIC +5.31%78 ROE % is 5.62% as of Dec. 2025, which is 44% below its 10-year median of 10.08. GuruFocus rates HAM:LYIC with a GF Score™ of 78/100 and a GF Value™ of €8.15 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,389 Metals & Mining companies, Lynas Rare Earths ranks better than 75.72% on this metric.
The historical rank and industry rank for Lynas Rare Earths's ROE % or its related term are showing as below:
HAM:LYIC'
s ROE % Range Over the Past 10 Years
Min: -73.95 Med: 10.08 Max: 39.63
Current: 3.06
During the past 13 years, Lynas Rare Earths's highest ROE % was 39.63%. The lowest was -73.95%. And the median was 10.08%.
HAM:LYIC's ROE % is ranked better than 75.72% of 2389
companies
in the Metals & Mining industry
Industry Median: -16.11
vs HAM:LYIC: 3.06
Lynas Rare Earths (HAM:LYIC) 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.
Lynas Rare Earths ROE % Related Terms
Lynas Rare Earths ROE % Historical Data
* Premium members only.
The historical data trend for Lynas Rare Earths'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 Other Industrial Metals & Mining subindustry, Lynas Rare Earths'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.
Lynas Rare Earths ROE % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Lynas Rare Earths's ROE % distribution charts can be found below:
* The bar in red indicates where Lynas Rare Earths'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.
Lynas Rare Earths (HAM:LYIC) has a ROE % of 5.62% 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 Lynas Rare Earths and its competitors. This is 44% below median its historical median of 10.08. According to the industry distribution chart, Lynas Rare Earths ranks #580 out of 2389 companies in the Metals & Mining industry, placing it in the top 24.3%.
Is Lynas Rare Earths' ROE % too high?
Lynas Rare Earths' current ROE % of 5.62% is 44% below median its 10-year median of 10.08. Based on the distribution chart, Lynas Rare Earths ranks #580 out of 2389 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Lynas Rare Earths has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lynas Rare Earths' ROE % compare to competitors?
According to the Metals & Mining industry distribution chart, Lynas Rare Earths ranks #580 out of 2389 companies for ROE %. This places Lynas Rare Earths in the top 24% of its industry — outperforming the majority of peers. 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 Metals & Mining company?
A good ROE % depends on the Metals & Mining industry context. 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 Lynas Rare Earths and its competitors. Lynas Rare Earths's current ROE % is 5.62%, which is 44% below median its own 10-year median of 10.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lynas Rare Earths stock overvalued right now?
Based on GuruFocus' analysis, Lynas Rare Earths (HAM:LYIC) is currently considered Significantly Overvalued. The stock's GF Value™ is €8.15, compared to a current price of €11.90 — trading 46% above its estimated fair value. The current ROE % is 5.62%, which is 44% below median its 10-year median of 10.08. Lynas Rare Earths' overall GF Score™ is 78/100 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 Lynas Rare Earths (HAM:LYIC), the current ROE % is 5.62% 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 Lynas Rare Earths (HAM:LYIC) Overvalued in 2026?
Based on GuruFocus' analysis, Lynas Rare Earths stock appears to be overvalued.
The current stock price of €11.90 is trading 46% above its estimated GF Value™ of €8.15.
GuruFocus considers Lynas Rare Earths to be Significantly Overvalued.
Key valuation signals for HAM:LYIC:
ROE %: 5.62% (44% below median its 10-year median of 10.08)
GF Value™: €8.15 vs. price of €11.90 (46% above fair value)
No single metric tells the full story. See the HAM:LYIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lynas is the largest rare-earth producer outside China. It owns the high-grade Mount Weld deposit in Western Australia and rare-earth processing facilities in Kalgoorlie and Malaysia. We estimate that Mount Weld is the world's lowest-cost producer of separated neodymium and praseodymium, light rare-earth materials, which are sold to customers in the form of neodymium-praseodymium oxide with a mine life exceeding 20 years. As of December 2025, Lynas is also the only producer of separated heavy rare-earth dysprosium and terbium outside China. The company is further expanding NdPr capacity while diversifying into producing additional separated rare-earth materials, including samarium. It also intends to move downstream into rare-earth metal and magnet production.
78GF Score
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