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China Xinhua Education Group (HKSE:02779) 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.
China Xinhua Education Group ROE % Related Terms
China Xinhua Education Group 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 Education & Training Services subindustry, China Xinhua Education Group'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.
China Xinhua Education Group ROE % vs Education Industry
For the Education industry and Consumer Defensive sector, China Xinhua Education Group's ROE % distribution charts can be found below:
* The bar in red indicates where China Xinhua Education Group'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.
China Xinhua Education Group (HKSE:02779) has a ROE % of 4.10% 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 China Xinhua Education Group and its competitors. This is 64% below median its historical median of 11.47. Over the past decade, China Xinhua Education Group's ROE % has ranged from 7.14 to 24.58. According to the industry distribution chart, China Xinhua Education Group ranks #120 out of 260 companies in the Education industry, placing it in the top 46.2%.
Is China Xinhua Education Group's ROE % too high?
China Xinhua Education Group's current ROE % of 4.10% is 64% below median its 10-year median of 11.47. Over the past 10 years, this metric has ranged from a low of 7.14 to a high of 24.58. The Education industry median ROE % is 7.33. China Xinhua Education Group's value of 4.10% is 44.1% below this industry median. Based on the distribution chart, China Xinhua Education Group ranks #120 out of 260 companies in the Education industry, which is above the industry midpoint. Overall, China Xinhua Education Group has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Xinhua Education Group's ROE % compare to EDU and TAL?
According to the Education industry distribution chart, China Xinhua Education Group ranks #120 out of 260 companies for ROE %. This puts China Xinhua Education Group in the upper half of its industry. The industry median ROE % is 7.33. China Xinhua Education Group's value of 4.10% is 44.1% below this benchmark. Historically, China Xinhua Education Group's own ROE % has ranged from 7.14 to 24.58 over the past decade. While the company's 10-year median is 11.47 vs. the industry median of 7.33, China Xinhua Education Group 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 an Education company?
The median ROE % among Education companies is 7.33, based on 260 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. China Xinhua Education Group's current ROE % of 4.10% is 44.1% 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 China Xinhua Education Group and its competitors. For the Education industry, the median ROE % is 7.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Xinhua Education Group's current ROE % is 4.10%, which is 64% below median its own 10-year median of 11.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Xinhua Education Group stock overvalued right now?
Based on GuruFocus' analysis, China Xinhua Education Group (HKSE:02779) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.68, compared to a current price of HK$0.30 — trading 56.6% below its estimated fair value. The current ROE % is 4.10%, which is 64% below median its 10-year median of 11.47 and 44.1% below the Education industry median of 7.33. China Xinhua Education Group's overall GF Score™ is 62/100 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 China Xinhua Education Group (HKSE:02779), the current ROE % is 4.10% 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 China Xinhua Education Group (HKSE:02779) Overvalued in 2026?
Based on GuruFocus' analysis, China Xinhua Education Group stock appears to be undervalued.
The current stock price of HK$0.30 is trading 56.6% below its estimated GF Value™ of HK$0.68.
GuruFocus considers China Xinhua Education Group to be Possible Value Trap.
Key valuation signals for HKSE:02779:
ROE %: 4.10% (64% below median its 10-year median of 11.47)
GF Value™: HK$0.68 vs. price of HK$0.30 (56.6% below fair value)
Industry Position: 44.1% below the Education median (#120 of 260)
No single metric tells the full story. See the HKSE:02779 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Xinhua Education Group Ltd is principally engaged in the provision of education services in China. It mainly provides private formal higher education and formal secondary vocational education in the Yangtze River Delta. It currently operates four private schools, namely Anhui Xinhua University, School of Clinical Medicine jointly operated by the Group and Anhui Medical University, Hongshan College, a college jointly operated by the Group and Nanjing University of Finance & Economics Hongshan College, and Anhui Xinhua School. The company generates revenues from tuition fees, and boarding fees out of which tuition fees contribute the majority part.
62GF Score
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