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Chinasoft International (HKSE:00354) 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 (Jun. 2026) net income data. The Revenue data used here is two times the semi-annual (Jun. 2026) 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.
* 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 Information Technology Services subindustry, Chinasoft International'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.
Chinasoft International ROE % vs Software Industry
For the Software industry and Technology sector, Chinasoft International's ROE % distribution charts can be found below:
* The bar in red indicates where Chinasoft International'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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Chinasoft International (HKSE:00354) has a ROE % of 5.18% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Chinasoft International and its competitors. This is 54% below median its historical median of 11.37. Over the past decade, Chinasoft International's ROE % has ranged from 2.82 to 12.88. According to the industry distribution chart, Chinasoft International ranks #1480 out of 2702 companies in the Software industry, placing it in the top 54.8%.
Is Chinasoft International's ROE % too high?
Chinasoft International's current ROE % of 5.18% is 54% below median its 10-year median of 11.37. Over the past 10 years, this metric has ranged from a low of 2.82 to a high of 12.88. The Software industry median ROE % is 4.89. Chinasoft International's value of 5.18% is 5.9% above this industry median. Based on the distribution chart, Chinasoft International ranks #1480 out of 2702 companies in the Software industry, which is below the industry midpoint. Overall, Chinasoft International has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chinasoft International's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Chinasoft International ranks #1480 out of 2702 companies for ROE %. This places Chinasoft International in the lower half of its industry. The industry median ROE % is 4.89. Chinasoft International's value of 5.18% is 5.9% above this benchmark. Historically, Chinasoft International's own ROE % has ranged from 2.82 to 12.88 over the past decade. While the company's 10-year median is 11.37 vs. the industry median of 4.89, Chinasoft International 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 Software company?
The median ROE % among Software companies is 4.89, based on 2,702 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. Chinasoft International's current ROE % of 5.18% is 5.9% 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 Chinasoft International and its competitors. For the Software industry, the median ROE % is 4.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chinasoft International's current ROE % is 5.18%, which is 54% below median its own 10-year median of 11.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chinasoft International stock overvalued right now?
Based on GuruFocus' analysis, Chinasoft International (HKSE:00354) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$5.80, compared to a current price of HK$3.71 — trading 36.1% below its estimated fair value. The current ROE % is 5.18%, which is 54% below median its 10-year median of 11.37 and 5.9% above the Software industry median of 4.89. Chinasoft International's overall GF Score™ is 86/100 with 7 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 Chinasoft International (HKSE:00354), the current ROE % is 5.18% as of Jun. 2026. 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 Chinasoft International (HKSE:00354) Overvalued in 2026?
Based on GuruFocus' analysis, Chinasoft International stock appears to be undervalued.
The current stock price of HK$3.71 is trading 36.1% below its estimated GF Value™ of HK$5.80.
GuruFocus considers Chinasoft International to be Significantly Undervalued.
Key valuation signals for HKSE:00354:
ROE %: 5.18% (54% below median its 10-year median of 11.37)
GF Value™: HK$5.80 vs. price of HK$3.71 (36.1% below fair value)
Industry Position: 5.9% above the Software median (#1480 of 2702)
No single metric tells the full story. See the HKSE:00354 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chinasoft International Ltd is an investment holding company. The principal activities of the Company and its subsidiaries are development and provision of information technology (IT) solutions services, and IT outsourcing services. The company's Nature of goods and services Project-based development services, Outsourcing services, Other services, Sales of software and hardware products of which majority of revenue comes from Outsourcing services. The group now has only one operating segment. The Group's operations are mainly located in its country of domicile, the People's Republic of China. The company has presence in PRC, Malaysia, Japan, Saudi Arabia, Singapore, India, and Indonesia. The majority of revenue comes from PRC.
86GF Score
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