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Beijing Xunzhong Communication Technology Co (HKSE:02597) 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.
Beijing Xunzhong Communication Technology Co ROE % Related Terms
Beijing Xunzhong Communication Technology 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.
Beijing Xunzhong Communication Technology Co ROE % Chart
Beijing Xunzhong Communication Technology Co Annual Data
Trend
Dec22
Dec23
Dec24
Dec25
ROE %
10.67
10.25
6.50
7.09
Beijing Xunzhong Communication Technology Co Semi-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.
Beijing Xunzhong Communication Technology Co ROE % vs Telecommunication Services 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.
Beijing Xunzhong Communication Technology Co (HKSE:02597) has a ROE % of 9.00% 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 Beijing Xunzhong Communication Technology Co and its competitors. This is near median its historical median of 8.67. Over the past decade, Beijing Xunzhong Communication Technology Co's ROE % has ranged from 6.50 to 10.67. According to the industry distribution chart, Beijing Xunzhong Communication Technology Co ranks #171 out of 347 companies in the Telecommunication Services industry, placing it in the top 49.3%.
Is Beijing Xunzhong Communication Technology Co's ROE % too high?
Beijing Xunzhong Communication Technology Co's current ROE % of 9.00% is near median its 10-year median of 8.67. Over the past 10 years, this metric has ranged from a low of 6.50 to a high of 10.67. The Telecommunication Services industry median ROE % is 7.35. Beijing Xunzhong Communication Technology Co's value of 9.00% is 22.4% above this industry median. Based on the distribution chart, Beijing Xunzhong Communication Technology Co ranks #171 out of 347 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Beijing Xunzhong Communication Technology Co has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Beijing Xunzhong Communication Technology Co's ROE % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Beijing Xunzhong Communication Technology Co ranks #171 out of 347 companies for ROE %. This puts Beijing Xunzhong Communication Technology Co in the upper half of its industry. The industry median ROE % is 7.35. Beijing Xunzhong Communication Technology Co's value of 9.00% is 22.4% above this benchmark. Historically, Beijing Xunzhong Communication Technology Co's own ROE % has ranged from 6.50 to 10.67 over the past decade. While the company's 10-year median is 8.67 vs. the industry median of 7.35, Beijing Xunzhong Communication Technology Co 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 Telecommunication Services company?
The median ROE % among Telecommunication Services companies is 7.35, based on 347 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. Beijing Xunzhong Communication Technology Co's current ROE % of 9.00% is 22.4% 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 Beijing Xunzhong Communication Technology Co and its competitors. For the Telecommunication Services industry, the median ROE % is 7.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beijing Xunzhong Communication Technology Co's current ROE % is 9.00%, which is near median its own 10-year median of 8.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beijing Xunzhong Communication Technology Co stock overvalued right now?
Beijing Xunzhong Communication Technology Co (HKSE:02597) has a current ROE % of 9.00%. The current ROE % is 9.00%, which is near median its 10-year median of 8.67 and 22.4% above the Telecommunication Services industry median of 7.35. Beijing Xunzhong Communication Technology Co's overall GF Score™ is 19/100 with 2 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 Beijing Xunzhong Communication Technology Co (HKSE:02597), the current ROE % is 9.00% 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.
Beijing Xunzhong Communication Technology Co Ltd is a cloud-based communication service provider. Communications Platform as a Service, also known as CPaaS, is at the core of its business. On its cloud-based CPaaS platform, its customers, principally internet companies, software and information technology companies, and financial institutions, have convenient access to a vast array of integrated telecommunications resources, covering voice, messaging, and mobile data capabilities, which the company sources from majorly telecommunications operators and other service providers in China.
19GF Score
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