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.
Tradelink Electronic Commerce ROE % Related Terms
Tradelink Electronic Commerce 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 Software - Application subindustry, Tradelink Electronic Commerce'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.
Tradelink Electronic Commerce ROE % vs Software Industry
For the Software industry and Technology sector, Tradelink Electronic Commerce's ROE % distribution charts can be found below:
* The bar in red indicates where Tradelink Electronic Commerce'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.
Tradelink Electronic Commerce (HKSE:00536) has a ROE % of 22.46% 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 Tradelink Electronic Commerce and its competitors. This is near median its historical median of 21.89. Over the past decade, Tradelink Electronic Commerce's ROE % has ranged from 14.09 to 27.18. According to the industry distribution chart, Tradelink Electronic Commerce ranks #405 out of 2683 companies in the Software industry, placing it in the top 15.1%.
Is Tradelink Electronic Commerce's ROE % too high?
Tradelink Electronic Commerce's current ROE % of 22.46% is near median its 10-year median of 21.89. Over the past 10 years, this metric has ranged from a low of 14.09 to a high of 27.18. The Software industry median ROE % is 4.73. Tradelink Electronic Commerce's value of 22.46% is 374.8% above this industry median. Based on the distribution chart, Tradelink Electronic Commerce ranks #405 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Tradelink Electronic Commerce has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tradelink Electronic Commerce's ROE % compare to UBER and SHOP?
According to the Software industry distribution chart, Tradelink Electronic Commerce ranks #405 out of 2683 companies for ROE %. This places Tradelink Electronic Commerce in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 4.73. Tradelink Electronic Commerce's value of 22.46% is 374.8% above this benchmark. Historically, Tradelink Electronic Commerce's own ROE % has ranged from 14.09 to 27.18 over the past decade. While the company's 10-year median is 21.89 vs. the industry median of 4.73, Tradelink Electronic Commerce 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 4.73, based on 2,683 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. Tradelink Electronic Commerce's current ROE % of 22.46% is 374.8% 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 Tradelink Electronic Commerce and its competitors. For the Software industry, the median ROE % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tradelink Electronic Commerce's current ROE % is 22.46%, which is near median its own 10-year median of 21.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tradelink Electronic Commerce stock overvalued right now?
Based on GuruFocus' analysis, Tradelink Electronic Commerce (HKSE:00536) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.88, compared to a current price of HK$1.13 — trading 28.4% above its estimated fair value. The current ROE % is 22.46%, which is near median its 10-year median of 21.89 and 374.8% above the Software industry median of 4.73. Tradelink Electronic Commerce's overall GF Score™ is 57/100 with 8 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 Tradelink Electronic Commerce (HKSE:00536), the current ROE % is 22.46% 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 Tradelink Electronic Commerce (HKSE:00536) Overvalued in 2026?
Based on GuruFocus' analysis, Tradelink Electronic Commerce stock appears to be overvalued.
The current stock price of HK$1.13 is trading 28.4% above its estimated GF Value™ of HK$0.88.
GuruFocus considers Tradelink Electronic Commerce to be Modestly Overvalued.
Key valuation signals for HKSE:00536:
ROE %: 22.46% (near median its 10-year median of 21.89)
GF Value™: HK$0.88 vs. price of HK$1.13 (28.4% above fair value)
Industry Position: 374.8% above the Software median (#405 of 2683)
No single metric tells the full story. See the HKSE:00536 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tradelink Electronic Commerce Business Description
Tradelink Electronic Commerce Ltd is mainly engaged in the provision of Government Electronic Trading Services (GETS) for processing certain official trade-related documents. It operates in the following segments: E-commerce, which accounts for the majority of revenue; Identity Management; and Other Services. The E-commerce segment is engaged in providing the group's Government Electronic Trading Services and supply chain solutions. The Identity Management segment provides security products, digital certificates, security solutions, and biometric-based authentication solutions for identity management. The Other Services segment comprises handling fees for the conversion of the paper form to electronic messages, income from the provision of technical support, and other project services.
57GF Score
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