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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. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 2024) 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.
Differ Group Auto ROE % Related Terms
Differ Group Auto ROE % Historical Data
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The historical data trend for Differ Group Auto'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 Credit Services subindustry, Differ Group Auto'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.
Differ Group Auto ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Differ Group Auto's ROE % distribution charts can be found below:
* The bar in red indicates where Differ Group Auto'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. 2024) net income data.
ROE % is displayed in the 30-year financial page.
Differ Group Auto (HKSE:06878) has a ROE % of -228.62% as of Jun. 2024. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Differ Group Auto and its competitors.
Is Differ Group Auto's ROE % too high?
Differ Group Auto's current ROE % is -228.62%. Overall, Differ Group Auto has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Differ Group Auto's ROE % compare to V and MA?
Differ Group Auto's ROE % of -228.62% can be compared against companies in the Credit Services industry. The industry median ROE % is 6.79. 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 Credit Services company?
The median ROE % among Credit Services companies is 6.79, based on 528 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. 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 Differ Group Auto and its competitors. For the Credit Services industry, the median ROE % is 6.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Differ Group Auto's current ROE % is -228.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Differ Group Auto stock overvalued right now?
Differ Group Auto (HKSE:06878) has a current ROE % of -228.62%. The current ROE % is -228.62%. Differ Group Auto's overall GF Score™ is 4/100. 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 Differ Group Auto (HKSE:06878), the current ROE % is -228.62% as of Jun. 2024. 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.
Differ Group Auto Ltd, formerly Differ Group Holding Company Limited, is a China-based investment holding company. The Company conducts its businesses primarily through four segments. The Financial Services segment is principally engaged in the provision of guarantee services, express loan services, advisory services, financial leasing services, financial securities services and asset management. The Property Development and Investment segment is principally engaged in the operation of property development projects and property investment activities. The Commodity Trading segment is mainly engaged in the trading of commodities. The Automotive E-commerce segment is principally engaged in the operation of online automotive e-commerce platforms.
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