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Build King HoldingsHKSE:00240 +0.34%74 ROE % is 19.59% as of Dec. 2025, which is 22% below its 10-year median of 25.25. GuruFocus rates HKSE:00240 with a GF Score™ of 74/100 and a GF Value™ of HK$1.18 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,746 Construction companies, Build King Holdings ranks better than 79.84% on this metric.
Build King Holdings (HKSE:00240) 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.
Build King Holdings ROE % Related Terms
Build King Holdings ROE % Historical Data
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The historical data trend for Build King 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.
For the Engineering & Construction subindustry, Build King 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.
Build King Holdings ROE % vs Construction Industry
For the Construction industry and Industrials sector, Build King Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Build King 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.
Build King Holdings (HKSE:00240) has a ROE % of 19.59% 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 Build King Holdings and its competitors. This is 22% below median its historical median of 25.25. Over the past decade, Build King Holdings' ROE % has ranged from 16.22 to 49.96. According to the industry distribution chart, Build King Holdings ranks #352 out of 1746 companies in the Construction industry, placing it in the top 20.2%.
Is Build King Holdings' ROE % too high?
Build King Holdings' current ROE % of 19.59% is 22% below median its 10-year median of 25.25. Over the past 10 years, this metric has ranged from a low of 16.22 to a high of 49.96. The Construction industry median ROE % is 6.72. Build King Holdings' value of 19.59% is 191.7% above this industry median. Based on the distribution chart, Build King Holdings ranks #352 out of 1746 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Build King Holdings has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Build King Holdings' ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Build King Holdings ranks #352 out of 1746 companies for ROE %. This places Build King Holdings in the top 20% of its industry — outperforming the majority of peers. The industry median ROE % is 6.72. Build King Holdings' value of 19.59% is 191.7% above this benchmark. Historically, Build King Holdings' own ROE % has ranged from 16.22 to 49.96 over the past decade. While the company's 10-year median is 25.25 vs. the industry median of 6.72, Build King 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 Construction company?
The median ROE % among Construction companies is 6.72, based on 1,746 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. Build King Holdings's current ROE % of 19.59% is 191.7% 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 Build King Holdings and its competitors. For the Construction industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Build King Holdings's current ROE % is 19.59%, which is 22% below median its own 10-year median of 25.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Build King Holdings stock overvalued right now?
Based on GuruFocus' analysis, Build King Holdings (HKSE:00240) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$1.18, compared to a current price of HK$1.49 — trading 25.8% above its estimated fair value. The current ROE % is 19.59%, which is 22% below median its 10-year median of 25.25 and 191.7% above the Construction industry median of 6.72. Build King Holdings' overall GF Score™ is 74/100 with 4 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 Build King Holdings (HKSE:00240), the current ROE % is 19.59% 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 Build King Holdings (HKSE:00240) Overvalued in 2026?
Based on GuruFocus' analysis, Build King Holdings stock appears to be overvalued.
The current stock price of HK$1.49 is trading 25.8% above its estimated GF Value™ of HK$1.18.
GuruFocus considers Build King Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:00240:
ROE %: 19.59% (22% below median its 10-year median of 25.25)
GF Value™: HK$1.18 vs. price of HK$1.49 (25.8% above fair value)
Industry Position: 191.7% above the Construction median (#352 of 1746)
No single metric tells the full story. See the HKSE:00240 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Build King Holdings Ltd is an investment holding company. Through its subsidiaries, the firm is engaged in the construction activities. The company mainly operates in Hong Kong and the Chinese market. The company's business includes building construction, civil works, foundation works, railway and associated works, structural steel works, tunnels, and maritime works. It generates the majority of its revenue from Hong Kong.
74GF Score
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ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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