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Universe Entertainment And Culture Group Co (HKSE:01046) 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.
Universe Entertainment And Culture Group Co ROE % Related Terms
Universe Entertainment And Culture Group Co 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.
Universe Entertainment And Culture Group Co ROE % Chart
Universe Entertainment And Culture Group Co Annual Data
* 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.
Universe Entertainment And Culture Group Co ROE % vs Media - Diversified Industry
* 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.
Universe Entertainment And Culture Group Co (HKSE:01046) has a ROE % of -8.36% 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 Universe Entertainment And Culture Group Co and its competitors. According to the industry distribution chart, Universe Entertainment And Culture Group Co ranks #546 out of 950 companies in the Media - Diversified industry, placing it in the top 57.5%.
Is Universe Entertainment And Culture Group Co's ROE % too high?
Universe Entertainment And Culture Group Co's current ROE % is -8.36%. Based on the distribution chart, Universe Entertainment And Culture Group Co ranks #546 out of 950 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Universe Entertainment And Culture Group Co has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Universe Entertainment And Culture Group Co's ROE % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Universe Entertainment And Culture Group Co ranks #546 out of 950 companies for ROE %. This places Universe Entertainment And Culture Group Co in the lower half of its industry. The industry median ROE % is 2.52. 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 Media - Diversified company?
The median ROE % among Media - Diversified companies is 2.52, based on 950 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. 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 Universe Entertainment And Culture Group Co and its competitors. For the Media - Diversified industry, the median ROE % is 2.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universe Entertainment And Culture Group Co's current ROE % is -8.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universe Entertainment And Culture Group Co stock overvalued right now?
Based on GuruFocus' analysis, Universe Entertainment And Culture Group Co (HKSE:01046) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.35, compared to a current price of HK$1.03 — trading 192.9% above its estimated fair value. The current ROE % is -8.36%. Universe Entertainment And Culture Group Co's overall GF Score™ is 49/100 with 6 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 Universe Entertainment And Culture Group Co (HKSE:01046), the current ROE % is -8.36% 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 Universe Entertainment And Culture Group Co (HKSE:01046) Overvalued in 2026?
Based on GuruFocus' analysis, Universe Entertainment And Culture Group Co stock appears to be overvalued.
The current stock price of HK$1.03 is trading 192.9% above its estimated GF Value™ of HK$0.35.
GuruFocus considers Universe Entertainment And Culture Group Co to be Significantly Overvalued.
Key valuation signals for HKSE:01046:
ROE %: -8.36%
GF Value™: HK$0.35 vs. price of HK$1.03 (192.9% above fair value)
No single metric tells the full story. See the HKSE:01046 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universe Entertainment And Culture Group Co Ltd is an investment holding company. Along with its subsidiaries, the company operates in the following reportable segments; Video distribution, film distribution and exhibition, licensing and sublicensing of film rights; Trading, wholesaling, and retailing of optical products and watches products; Leasing of investment properties; Securities investments; Financial printing services; and Others. Geographically, it derives key revenue from Hong Kong, and the rest from the People's Republic of China, Other Asian countries, and other regions. The company generates maximum revenue from Video distribution, film distribution and exhibition, licensing, and sublicensing of film rights segment.
49GF 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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