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SFK Construction HoldingsHKSE:01447 43 ROE % is 4.19% as of Dec. 2025, which is 29% below its 10-year median of 5.92. GuruFocus rates HKSE:01447 with a GF Score™ of 43/100 and a GF Value™ of HK$0.67 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,750 Construction companies, SFK Construction Holdings ranks worse than 60.4% on this metric.
SFK Construction Holdings (HKSE:01447) 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.
For the Engineering & Construction subindustry, SFK Construction 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.
SFK Construction Holdings ROE % vs Construction Industry
For the Construction industry and Industrials sector, SFK Construction Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where SFK Construction 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.
SFK Construction Holdings (HKSE:01447) has a ROE % of 4.19% 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 SFK Construction Holdings and its competitors. This is 29% below median its historical median of 5.92. According to the industry distribution chart, SFK Construction Holdings ranks #1057 out of 1750 companies in the Construction industry, placing it in the top 60.4%.
Is SFK Construction Holdings' ROE % too high?
SFK Construction Holdings' current ROE % of 4.19% is 29% below median its 10-year median of 5.92. The Construction industry median ROE % is 6.72. SFK Construction Holdings' value of 4.19% is 37.6% below this industry median. Based on the distribution chart, SFK Construction Holdings ranks #1057 out of 1750 companies in the Construction industry, which is below the industry midpoint. Overall, SFK Construction Holdings has a GF Score™ of 43/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SFK Construction Holdings' ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, SFK Construction Holdings ranks #1057 out of 1750 companies for ROE %. This places SFK Construction Holdings in the lower half of its industry. The industry median ROE % is 6.72. SFK Construction Holdings' value of 4.19% is 37.6% below this benchmark. While the company's 10-year median is 5.92 vs. the industry median of 6.72, SFK Construction 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 Construction company?
The median ROE % among Construction companies is 6.72, based on 1,750 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. SFK Construction Holdings's current ROE % of 4.19% 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 SFK Construction Holdings and its competitors. For the Construction industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SFK Construction Holdings's current ROE % is 4.19%, which is 29% below median its own 10-year median of 5.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SFK Construction Holdings stock overvalued right now?
Based on GuruFocus' analysis, SFK Construction Holdings (HKSE:01447) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.67, compared to a current price of HK$0.59 — trading 11.9% below its estimated fair value. The current ROE % is 4.19%, which is 29% below median its 10-year median of 5.92 and 37.6% below the Construction industry median of 6.72. SFK Construction Holdings' overall GF Score™ is 43/100 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 SFK Construction Holdings (HKSE:01447), the current ROE % is 4.19% 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 SFK Construction Holdings (HKSE:01447) Overvalued in 2026?
Based on GuruFocus' analysis, SFK Construction Holdings stock appears to be undervalued.
The current stock price of HK$0.59 is trading 11.9% below its estimated GF Value™ of HK$0.67.
GuruFocus considers SFK Construction Holdings to be Modestly Undervalued.
Key valuation signals for HKSE:01447:
ROE %: 4.19% (29% below median its 10-year median of 5.92)
GF Value™: HK$0.67 vs. price of HK$0.59 (11.9% below fair value)
Industry Position: 37.6% below the Construction median (#1057 of 1750)
No single metric tells the full story. See the HKSE:01447 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SFK Construction Holdings Ltd is engaged in construction and maintenance projects, housing and property management services, fresh water and flush water maintenance, sewage water sampling, electrical and mechanical engineering, and other services in Hong Kong. Its three reportable segments include: General building which erans maximum revenue, provides engineering services of substructure or superstructure of building structures and maintenance, repairs, alterations services, and additions to building structures; Civil engineering which provides engineering services of infrastructure facilities and maintenance, repairs, alterations services to infrastructure facilities; and Others provides housing management services, electrical and mechanical engineering services and consultancy services.
43GF Score
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