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.
* 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 Waste Management subindustry, Kimou Environmental Holding'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.
Kimou Environmental Holding ROE % vs Waste Management Industry
For the Waste Management industry and Industrials sector, Kimou Environmental Holding's ROE % distribution charts can be found below:
* The bar in red indicates where Kimou Environmental Holding'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.
Kimou Environmental Holding (HKSE:06805) has a ROE % of 14.58% 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 Kimou Environmental Holding and its competitors. This is 35% above median its historical median of 10.77. Over the past decade, Kimou Environmental Holding's ROE % has ranged from 5.62 to 29.84. According to the industry distribution chart, Kimou Environmental Holding ranks #51 out of 231 companies in the Waste Management industry, placing it in the top 22.1%.
Is Kimou Environmental Holding's ROE % too high?
Kimou Environmental Holding's current ROE % of 14.58% is 35% above median its 10-year median of 10.77. Over the past 10 years, this metric has ranged from a low of 5.62 to a high of 29.84. The Waste Management industry median ROE % is 5.21. Kimou Environmental Holding's value of 14.58% is 179.8% above this industry median. Based on the distribution chart, Kimou Environmental Holding ranks #51 out of 231 companies in the Waste Management industry, which is in the top quartile — a strong position relative to peers. Overall, Kimou Environmental Holding has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kimou Environmental Holding's ROE % compare to WM and RSG?
According to the Waste Management industry distribution chart, Kimou Environmental Holding ranks #51 out of 231 companies for ROE %. This places Kimou Environmental Holding in the top 22% of its industry — outperforming the majority of peers. The industry median ROE % is 5.21. Kimou Environmental Holding's value of 14.58% is 179.8% above this benchmark. Historically, Kimou Environmental Holding's own ROE % has ranged from 5.62 to 29.84 over the past decade. While the company's 10-year median is 10.77 vs. the industry median of 5.21, Kimou Environmental Holding 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 Waste Management company?
The median ROE % among Waste Management companies is 5.21, based on 231 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. Kimou Environmental Holding's current ROE % of 14.58% is 179.8% 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 Kimou Environmental Holding and its competitors. For the Waste Management industry, the median ROE % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kimou Environmental Holding's current ROE % is 14.58%, which is 35% above median its own 10-year median of 10.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kimou Environmental Holding stock overvalued right now?
Based on GuruFocus' analysis, Kimou Environmental Holding (HKSE:06805) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$1.70, compared to a current price of HK$3.12 — trading 83.5% above its estimated fair value. The current ROE % is 14.58%, which is 35% above median its 10-year median of 10.77 and 179.8% above the Waste Management industry median of 5.21. Kimou Environmental Holding's overall GF Score™ is 72/100 with 9 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 Kimou Environmental Holding (HKSE:06805), the current ROE % is 14.58% 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 Kimou Environmental Holding (HKSE:06805) Overvalued in 2026?
Based on GuruFocus' analysis, Kimou Environmental Holding stock appears to be overvalued.
The current stock price of HK$3.12 is trading 83.5% above its estimated GF Value™ of HK$1.70.
GuruFocus considers Kimou Environmental Holding to be Significantly Overvalued.
Key valuation signals for HKSE:06805:
ROE %: 14.58% (35% above median its 10-year median of 10.77)
GF Value™: HK$1.70 vs. price of HK$3.12 (83.5% above fair value)
Industry Position: 179.8% above the Waste Management median (#51 of 231)
No single metric tells the full story. See the HKSE:06805 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kimou Environmental Holding Ltd mainly involves the provision of factory premises and centralized wastewater treatment services. The company's operating segment includes Rental and facilities usage; Wastewater treatment and utilities; and Sales of goods and ancillary business. The company generates maximum revenue from the Sales of goods and ancillary business segment. Rental and facilities usage segment conducts industrial park property development and management business; Wastewater treatment and utilities segment operates electroplating wastewater treatment plants and provides services of utilities; and Sales of goods and ancillary business segment includes sales of chemicals and others. Geographically, it derives revenue from China.
72GF Score
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