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.
Cloud Factory Technology Holdings ROE % Related Terms
Cloud Factory Technology Holdings 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.
Cloud Factory Technology Holdings ROE % Chart
Cloud Factory Technology Holdings Annual Data
Trend
Dec21
Dec22
Dec23
Dec24
Dec25
ROE %
33.70
18.48
27.63
5.28
2.63
Cloud Factory Technology Holdings Semi-Annual Data
For the Information Technology Services subindustry, Cloud Factory Technology 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.
Cloud Factory Technology Holdings ROE % vs Software 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.
Cloud Factory Technology Holdings (HKSE:02512) has a ROE % of -1.39% 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 Cloud Factory Technology Holdings and its competitors. Over the past decade, Cloud Factory Technology Holdings' ROE % has ranged from 2.63 to 33.70. According to the industry distribution chart, Cloud Factory Technology Holdings ranks #1493 out of 2683 companies in the Software industry, placing it in the top 55.6%.
Is Cloud Factory Technology Holdings' ROE % too high?
Cloud Factory Technology Holdings' current ROE % is -1.39%. Over the past 10 years, this metric has ranged from a low of 2.63 to a high of 33.70. Based on the distribution chart, Cloud Factory Technology Holdings ranks #1493 out of 2683 companies in the Software industry, which is below the industry midpoint. Overall, Cloud Factory Technology Holdings has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Cloud Factory Technology Holdings' ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Cloud Factory Technology Holdings ranks #1493 out of 2683 companies for ROE %. This places Cloud Factory Technology Holdings in the lower half of its industry. The industry median ROE % is 4.73. Historically, Cloud Factory Technology Holdings' own ROE % has ranged from 2.63 to 33.70 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 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. 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 Cloud Factory Technology Holdings 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. Cloud Factory Technology Holdings's current ROE % is -1.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cloud Factory Technology Holdings stock overvalued right now?
Cloud Factory Technology Holdings (HKSE:02512) has a current ROE % of -1.39%. The current ROE % is -1.39%. Cloud Factory Technology Holdings' overall GF Score™ is 15/100 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 Cloud Factory Technology Holdings (HKSE:02512), the current ROE % is -1.39% 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.
Cloud Factory Technology Holdings Business Description
Cloud Factory Technology Holdings Ltd is engaged in the provision of IDC Solution Services, Edge Computing Services, and Intelligent Computing, which form key components of cloud services. The Group generated revenue from four operating segments: (i) IDC Solution Services; (ii) Edge Computing Services; (iii) Intelligent Computing, and (iv) Other Services. The majority of its revenue is generated from the revenue from the IDC Solution Services.
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