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Hong Kong Johnson Holdings Co (HKSE:01955) 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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) 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.
Hong Kong Johnson Holdings Co ROE % Related Terms
Hong Kong Johnson Holdings 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.
For the Specialty Business Services subindustry, Hong Kong Johnson Holdings Co'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.
Hong Kong Johnson Holdings Co ROE % vs Business Services Industry
For the Business Services industry and Industrials sector, Hong Kong Johnson Holdings Co's ROE % distribution charts can be found below:
* The bar in red indicates where Hong Kong Johnson Holdings Co'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Hong Kong Johnson Holdings Co (HKSE:01955) has a ROE % of -1.68% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Hong Kong Johnson Holdings Co and its competitors. Over the past decade, Hong Kong Johnson Holdings Co's ROE % has ranged from 0.34 to 47.79. According to the industry distribution chart, Hong Kong Johnson Holdings Co ranks #787 out of 1057 companies in the Business Services industry, placing it in the top 74.5%.
Is Hong Kong Johnson Holdings Co's ROE % too high?
Hong Kong Johnson Holdings Co's current ROE % is -1.68%. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 47.79. Based on the distribution chart, Hong Kong Johnson Holdings Co ranks #787 out of 1057 companies in the Business Services industry, which is below the industry midpoint. Overall, Hong Kong Johnson Holdings Co has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hong Kong Johnson Holdings Co's ROE % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Hong Kong Johnson Holdings Co ranks #787 out of 1057 companies for ROE %. This places Hong Kong Johnson Holdings Co in the lower half of its industry. The industry median ROE % is 8.34. Historically, Hong Kong Johnson Holdings Co's own ROE % has ranged from 0.34 to 47.79 over the past decade. 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 Business Services company?
The median ROE % among Business Services companies is 8.34, based on 1,057 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 Hong Kong Johnson Holdings Co and its competitors. For the Business Services industry, the median ROE % is 8.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Kong Johnson Holdings Co's current ROE % is -1.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Kong Johnson Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Hong Kong Johnson Holdings Co (HKSE:01955) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.84, compared to a current price of HK$0.57 — trading 32.1% below its estimated fair value. The current ROE % is -1.68%. Hong Kong Johnson Holdings Co's overall GF Score™ is 61/100 with 7 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 Hong Kong Johnson Holdings Co (HKSE:01955), the current ROE % is -1.68% as of Mar. 2026. 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 Hong Kong Johnson Holdings Co (HKSE:01955) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Kong Johnson Holdings Co stock appears to be undervalued.
The current stock price of HK$0.57 is trading 32.1% below its estimated GF Value™ of HK$0.84.
GuruFocus considers Hong Kong Johnson Holdings Co to be Possible Value Trap.
Key valuation signals for HKSE:01955:
ROE %: -1.68%
GF Value™: HK$0.84 vs. price of HK$0.57 (32.1% below fair value)
No single metric tells the full story. See the HKSE:01955 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Kong Johnson Holdings Co Ltd is an investment holding company. The company is engaged in providing a wide range of environmental hygiene services in Hong Kong including the provision of building cleaning services, park and recreation center cleaning services, street cleaning services, institutional cleaning services, pest management services, garbage logistics services, and environmental improvement services.
61GF 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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