HEQ's ROE % is ranked better than 71.21% of 1615
companies
in the Asset Management industry
Industry Median: 6.35
vs HEQ: 13.10
John Hancock Hedged Equity &ome Fund (NYSE:HEQ) 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.
John Hancock Hedged Equity &ome Fund ROE % Related Terms
John Hancock Hedged Equity &ome Fund 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 Asset Management subindustry, John Hancock Hedged Equity &ome Fund'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.
John Hancock Hedged Equity &ome Fund ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, John Hancock Hedged Equity &ome Fund's ROE % distribution charts can be found below:
* The bar in red indicates where John Hancock Hedged Equity &ome Fund'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.
John Hancock Hedged Equity &ome Fund (HEQ) has a ROE % of 13.93% 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 John Hancock Hedged Equity &ome Fund and its competitors. This is 60% above median its historical median of 8.72. According to the industry distribution chart, John Hancock Hedged Equity &ome Fund ranks #465 out of 1615 companies in the Asset Management industry, placing it in the top 28.8%.
Is John Hancock Hedged Equity &ome Fund's ROE % too high?
John Hancock Hedged Equity &ome Fund's current ROE % of 13.93% is 60% above median its 10-year median of 8.72. The Asset Management industry median ROE % is 6.35. John Hancock Hedged Equity &ome Fund's value of 13.93% is 119.4% above this industry median. Based on the distribution chart, John Hancock Hedged Equity &ome Fund ranks #465 out of 1615 companies in the Asset Management industry, which is above the industry midpoint. Overall, John Hancock Hedged Equity &ome Fund has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does John Hancock Hedged Equity &ome Fund's ROE % compare to WHF and EVG?
According to the Asset Management industry distribution chart, John Hancock Hedged Equity &ome Fund ranks #465 out of 1615 companies for ROE %. This puts John Hancock Hedged Equity &ome Fund in the upper half of its industry. The industry median ROE % is 6.35. John Hancock Hedged Equity &ome Fund's value of 13.93% is 119.4% above this benchmark. While the company's 10-year median is 8.72 vs. the industry median of 6.35, John Hancock Hedged Equity &ome Fund 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 Asset Management company?
The median ROE % among Asset Management companies is 6.35, based on 1,615 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. John Hancock Hedged Equity &ome Fund's current ROE % of 13.93% is 119.4% 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 John Hancock Hedged Equity &ome Fund and its competitors. For the Asset Management industry, the median ROE % is 6.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. John Hancock Hedged Equity &ome Fund's current ROE % is 13.93%, which is 60% above median its own 10-year median of 8.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is John Hancock Hedged Equity &ome Fund stock overvalued right now?
Based on GuruFocus' analysis, John Hancock Hedged Equity &ome Fund (HEQ) is currently considered Modestly Undervalued. The stock's GF Value™ is $15.52, compared to a current price of $11.37 — trading 26.7% below its estimated fair value. The current ROE % is 13.93%, which is 60% above median its 10-year median of 8.72 and 119.4% above the Asset Management industry median of 6.35. John Hancock Hedged Equity &ome Fund's overall GF Score™ is 57/100 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 John Hancock Hedged Equity &ome Fund (HEQ), the current ROE % is 13.93% 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 John Hancock Hedged Equity &ome Fund (HEQ) Overvalued in 2026?
Based on GuruFocus' analysis, John Hancock Hedged Equity &ome Fund stock appears to be undervalued.
The current stock price of $11.37 is trading 26.7% below its estimated GF Value™ of $15.52.
GuruFocus considers John Hancock Hedged Equity &ome Fund to be Modestly Undervalued.
Key valuation signals for HEQ:
ROE %: 13.93% (60% above median its 10-year median of 8.72)
GF Value™: $15.52 vs. price of $11.37 (26.7% below fair value)
Industry Position: 119.4% above the Asset Management median (#465 of 1615)
No single metric tells the full story. See the HEQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
John Hancock Hedged Equity &ome Fund Business Description
John Hancock Hedged Equity & Income Fund is a closed-end management investment company. Its investment objective is to provide total return, with a focus on current income and gains, and to include long-term capital appreciation. It invests in various sectors such as financials, consumer discretionary, information technology, energy, healthcare, materials, real estate, consumer staples, short-term investments, and others.
57GF Score
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