The historical rank and industry rank for New Horizon Health's ROE % or its related term are showing as below:
HKSE:06606's ROE % is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 2.45 * Ranked among companies with meaningful ROE % only.
New Horizon Health (HKSE:06606) 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 (Jun. 2023) net income data. The Revenue data used here is two times the semi-annual (Jun. 2023) 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.
New Horizon Health ROE % Related Terms
New Horizon Health ROE % Historical Data
* Premium members only.
The historical data trend for New Horizon Health's ROE % can be seen below:
* 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 Medical Devices subindustry, New Horizon Health'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.
New Horizon Health ROE % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, New Horizon Health's ROE % distribution charts can be found below:
* The bar in red indicates where New Horizon Health'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 (Jun. 2023) net income data.
ROE % is displayed in the 30-year financial page.
New Horizon Health (HKSE:06606) has a ROE % of 9.76% as of Jun. 2023. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on New Horizon Health and its competitors.
Is New Horizon Health's ROE % too high?
New Horizon Health's current ROE % is 9.76%. The Medical Devices & Instruments industry median ROE % is 2.45. New Horizon Health's value of 9.76% is 298.4% above this industry median. Overall, New Horizon Health has a GF Score™ of 35/100, reflecting its overall financial health beyond just this single metric.
How does New Horizon Health's ROE % compare to ABT and SYK?
New Horizon Health's ROE % of 9.76% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROE % is 2.45. New Horizon Health's value of 9.76% is 298.4% above this benchmark. 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 Medical Devices & Instruments company?
The median ROE % among Medical Devices & Instruments companies is 2.45, based on 796 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. New Horizon Health's current ROE % of 9.76% is 298.4% 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 New Horizon Health and its competitors. For the Medical Devices & Instruments industry, the median ROE % is 2.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Horizon Health's current ROE % is 9.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Horizon Health stock overvalued right now?
New Horizon Health (HKSE:06606) has a current ROE % of 9.76%. The current ROE % is 9.76% and 298.4% above the Medical Devices & Instruments industry median of 2.45. New Horizon Health's overall GF Score™ is 35/100. 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 New Horizon Health (HKSE:06606), the current ROE % is 9.76% as of Jun. 2023. 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.
New Horizon Health Ltd is engaged in early cancer screening and in-home testing in China. The company has an early detection and cancer screening-focused pipeline of five products and product candidates with an emphasis on colorectal cancer screening. The company focuses on cancer prevention and cure through screening and early detection. It generates maximum revenue from ColoClear and Pupu Tube products.
35GF Score
Get the complete analysis for HKSE:06606
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:06606 has been successfully added to your 
