Fountain Set (Holdings)HKSE:00420 50 ROE % is 2.52% as of Dec. 2025, which is 22% below its 10-year median of 3.22. GuruFocus rates HKSE:00420 with a GF Score™ of 50/100 and a GF Value™ of HK$0.53 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,018 Manufacturing - Apparel & Accessories companies, Fountain Set (Holdings) ranks worse than 59.82% on this metric.
Fountain Set (Holdings) (HKSE:00420) 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.
* 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.
Fountain Set (Holdings) ROE % Competitor Comparison
For the Textile Manufacturing subindustry, Fountain Set (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.
Fountain Set (Holdings) ROE % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Fountain Set (Holdings)'s ROE % distribution charts can be found below:
* The bar in red indicates where Fountain Set (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.
Fountain Set (Holdings) (HKSE:00420) has a ROE % of 2.52% 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 Fountain Set (Holdings) and its competitors. This is 22% below median its historical median of 3.22. According to the industry distribution chart, Fountain Set (Holdings) ranks #609 out of 1018 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 59.8%.
Is Fountain Set (Holdings)'s ROE % too high?
Fountain Set (Holdings)'s current ROE % of 2.52% is 22% below median its 10-year median of 3.22. The Manufacturing - Apparel & Accessories industry median ROE % is 4.04. Fountain Set (Holdings)'s value of 2.52% is 37.6% below this industry median. Based on the distribution chart, Fountain Set (Holdings) ranks #609 out of 1018 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Fountain Set (Holdings) has a GF Score™ of 50/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fountain Set (Holdings)'s ROE % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Fountain Set (Holdings) ranks #609 out of 1018 companies for ROE %. This places Fountain Set (Holdings) in the lower half of its industry. The industry median ROE % is 4.04. Fountain Set (Holdings)'s value of 2.52% is 37.6% below this benchmark. While the company's 10-year median is 3.22 vs. the industry median of 4.04, Fountain Set (Holdings) has consistently been below 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 Manufacturing - Apparel & Accessories company?
The median ROE % among Manufacturing - Apparel & Accessories companies is 4.04, based on 1,018 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. Fountain Set (Holdings)'s current ROE % of 2.52% is 37.6% below 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 Fountain Set (Holdings) and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROE % is 4.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fountain Set (Holdings)'s current ROE % is 2.52%, which is 22% below median its own 10-year median of 3.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fountain Set (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, Fountain Set (Holdings) (HKSE:00420) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.53, compared to a current price of HK$0.66 — trading 24.5% above its estimated fair value. The current ROE % is 2.52%, which is 22% below median its 10-year median of 3.22 and 37.6% below the Manufacturing - Apparel & Accessories industry median of 4.04. Fountain Set (Holdings)'s overall GF Score™ is 50/100 with 5 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 Fountain Set (Holdings) (HKSE:00420), the current ROE % is 2.52% 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 Fountain Set (Holdings) (HKSE:00420) Overvalued in 2026?
Based on GuruFocus' analysis, Fountain Set (Holdings) stock appears to be overvalued.
The current stock price of HK$0.66 is trading 24.5% above its estimated GF Value™ of HK$0.53.
GuruFocus considers Fountain Set (Holdings) to be Modestly Overvalued.
Key valuation signals for HKSE:00420:
ROE %: 2.52% (22% below median its 10-year median of 3.22)
GF Value™: HK$0.53 vs. price of HK$0.66 (24.5% above fair value)
Industry Position: 37.6% below the Manufacturing - Apparel & Accessories median (#609 of 1018)
No single metric tells the full story. See the HKSE:00420 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fountain Set (Holdings) Ltd and its subsidiaries are circularly knitted fabric manufacturers. It provides vertically integrated operations in fabric knitting, dyeing, printing, and finishing. In addition, the group's product range also includes garments. The company supplies knitted fabric to garment manufacturers for apparel products like sportswear, casual wear, sleepwear, and innerwear. The operating segments of the company are the production and sales of dyed fabrics and yarns, and the Production and sales of garments. The group operates in Hong Kong, China, Taiwan, Korea, Sri Lanka, America, Europe, Vietnam and Others, of which maximum revenue is generated from The PRC.
50GF Score
Get the complete analysis for HKSE:00420
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:00420 has been successfully added to your 
