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Dragon Rise Group Holdings (HKSE:06829) 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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) 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 Engineering & Construction subindustry, Dragon Rise Group 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.
Dragon Rise Group Holdings ROE % vs Construction Industry
For the Construction industry and Industrials sector, Dragon Rise Group Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Dragon Rise Group Holdings'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Dragon Rise Group Holdings (HKSE:06829) has a ROE % of 6.25% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Dragon Rise Group Holdings and its competitors. This is 104% above median its historical median of 3.07. According to the industry distribution chart, Dragon Rise Group Holdings ranks #1014 out of 1747 companies in the Construction industry, placing it in the top 58%.
Is Dragon Rise Group Holdings' ROE % too high?
Dragon Rise Group Holdings' current ROE % of 6.25% is 104% above median its 10-year median of 3.07. The Construction industry median ROE % is 6.68. Dragon Rise Group Holdings' value of 6.25% is 6.4% below this industry median. Based on the distribution chart, Dragon Rise Group Holdings ranks #1014 out of 1747 companies in the Construction industry, which is below the industry midpoint. Overall, Dragon Rise Group Holdings has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dragon Rise Group Holdings' ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Dragon Rise Group Holdings ranks #1014 out of 1747 companies for ROE %. This places Dragon Rise Group Holdings in the lower half of its industry. The industry median ROE % is 6.68. Dragon Rise Group Holdings' value of 6.25% is 6.4% below this benchmark. While the company's 10-year median is 3.07 vs. the industry median of 6.68, Dragon Rise Group Holdings 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 a Construction company?
The median ROE % among Construction companies is 6.68, based on 1,747 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. Dragon Rise Group Holdings's current ROE % of 6.25% is 6.4% 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 Dragon Rise Group Holdings and its competitors. For the Construction industry, the median ROE % is 6.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dragon Rise Group Holdings's current ROE % is 6.25%, which is 104% above median its own 10-year median of 3.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dragon Rise Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Dragon Rise Group Holdings (HKSE:06829) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.71, compared to a current price of HK$2.28 — trading 221.1% above its estimated fair value. The current ROE % is 6.25%, which is 104% above median its 10-year median of 3.07 and 6.4% below the Construction industry median of 6.68. Dragon Rise Group Holdings' overall GF Score™ is 59/100 with 3 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 Dragon Rise Group Holdings (HKSE:06829), the current ROE % is 6.25% as of Mar. 2026. 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 Dragon Rise Group Holdings (HKSE:06829) Overvalued in 2026?
Based on GuruFocus' analysis, Dragon Rise Group Holdings stock appears to be overvalued.
The current stock price of HK$2.28 is trading 221.1% above its estimated GF Value™ of HK$0.71.
GuruFocus considers Dragon Rise Group Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:06829:
ROE %: 6.25% (104% above median its 10-year median of 3.07)
GF Value™: HK$0.71 vs. price of HK$2.28 (221.1% above fair value)
Industry Position: 6.4% below the Construction median (#1014 of 1747)
No single metric tells the full story. See the HKSE:06829 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dragon Rise Group Holdings Ltd is an investment holding company. It is a subcontractor for foundation engineering services. Geographically, it derives revenue from Hong Kong. The company principally provides excavation and lateral support works, pile cap construction works, and the disposal of excavated materials from piling and ancillary services, including dismantling of shoring, site formation, steel fixing and site clearance, in Hong Kong.
59GF Score
Get the complete analysis for HKSE:06829
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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