Lam Soon (Hong Kong)HKSE:00411 -1.36%69 ROE % is 10.98% as of Dec. 2025, which is 12% below its 10-year median of 12.54. GuruFocus rates HKSE:00411 with a GF Score™ of 69/100 and a GF Value™ of HK$8.33 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,914 Consumer Packaged Goods companies, Lam Soon (Hong Kong) ranks better than 59.87% on this metric.
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.
* 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 Packaged Foods subindustry, Lam Soon (Hong Kong)'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.
Lam Soon (Hong Kong) ROE % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lam Soon (Hong Kong)'s ROE % distribution charts can be found below:
* The bar in red indicates where Lam Soon (Hong Kong)'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.
Lam Soon (Hong Kong) (HKSE:00411) has a ROE % of 10.98% 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 Lam Soon (Hong Kong) and its competitors. This is 12% below median its historical median of 12.54. Over the past decade, Lam Soon (Hong Kong)'s ROE % has ranged from 2.97 to 16.10. According to the industry distribution chart, Lam Soon (Hong Kong) ranks #768 out of 1914 companies in the Consumer Packaged Goods industry, placing it in the top 40.1%.
Is Lam Soon (Hong Kong)'s ROE % too high?
Lam Soon (Hong Kong)'s current ROE % of 10.98% is 12% below median its 10-year median of 12.54. Over the past 10 years, this metric has ranged from a low of 2.97 to a high of 16.10. The Consumer Packaged Goods industry median ROE % is 6.72. Lam Soon (Hong Kong)'s value of 10.98% is 63.4% above this industry median. Based on the distribution chart, Lam Soon (Hong Kong) ranks #768 out of 1914 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Lam Soon (Hong Kong) has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lam Soon (Hong Kong)'s ROE % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Lam Soon (Hong Kong) ranks #768 out of 1914 companies for ROE %. This puts Lam Soon (Hong Kong) in the upper half of its industry. The industry median ROE % is 6.72. Lam Soon (Hong Kong)'s value of 10.98% is 63.4% above this benchmark. Historically, Lam Soon (Hong Kong)'s own ROE % has ranged from 2.97 to 16.10 over the past decade. While the company's 10-year median is 12.54 vs. the industry median of 6.72, Lam Soon (Hong Kong) 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 Consumer Packaged Goods company?
The median ROE % among Consumer Packaged Goods companies is 6.72, based on 1,914 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. Lam Soon (Hong Kong)'s current ROE % of 10.98% is 63.4% 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 Lam Soon (Hong Kong) and its competitors. For the Consumer Packaged Goods industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Soon (Hong Kong)'s current ROE % is 10.98%, which is 12% below median its own 10-year median of 12.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lam Soon (Hong Kong) stock overvalued right now?
Based on GuruFocus' analysis, Lam Soon (Hong Kong) (HKSE:00411) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$8.33, compared to a current price of HK$10.85 — trading 30.3% above its estimated fair value. The current ROE % is 10.98%, which is 12% below median its 10-year median of 12.54 and 63.4% above the Consumer Packaged Goods industry median of 6.72. Lam Soon (Hong Kong)'s overall GF Score™ is 69/100 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 Lam Soon (Hong Kong) (HKSE:00411), the current ROE % is 10.98% 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 Lam Soon (Hong Kong) (HKSE:00411) Overvalued in 2026?
Based on GuruFocus' analysis, Lam Soon (Hong Kong) stock appears to be overvalued.
The current stock price of HK$10.85 is trading 30.3% above its estimated GF Value™ of HK$8.33.
GuruFocus considers Lam Soon (Hong Kong) to be Modestly Overvalued.
Key valuation signals for HKSE:00411:
ROE %: 10.98% (12% below median its 10-year median of 12.54)
GF Value™: HK$8.33 vs. price of HK$10.85 (30.3% above fair value)
Industry Position: 63.4% above the Consumer Packaged Goods median (#768 of 1914)
No single metric tells the full story. See the HKSE:00411 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lam Soon (Hong Kong) Ltd is an investment holding company engaged in the manufacturing of food and detergent products. The company's business segments are based on its activities and include Food and Home Care. The Food segment involves the manufacturing and distribution of food products such as flour, edible oils, and vegetable fats. The Home Care segment covers the manufacturing and distribution of household cleaning products, including liquid dishwashing detergent, laundry powder, liquid laundry detergent, fabric softener, floor cleaner, and industrial marble cleanser. The majority of its revenue is generated from the Food segment activities. It operates in Hong Kong and international markets, with the majority of its revenue derived from Mainland China.
69GF Score
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