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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 (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.
Cornerstone Financial Holdings ROE % Related Terms
Cornerstone Financial Holdings 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 Advertising Agencies subindustry, Cornerstone Financial 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.
Cornerstone Financial Holdings ROE % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Cornerstone Financial Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Cornerstone Financial 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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Cornerstone Financial Holdings (HKSE:08112) has a ROE % of 5.78% 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 Cornerstone Financial Holdings and its competitors. According to the industry distribution chart, Cornerstone Financial Holdings ranks #756 out of 946 companies in the Media - Diversified industry, placing it in the top 79.9%.
Is Cornerstone Financial Holdings' ROE % too high?
Cornerstone Financial Holdings' current ROE % is 5.78%. The Media - Diversified industry median ROE % is 2.48. Cornerstone Financial Holdings' value of 5.78% is 133.5% above this industry median. Based on the distribution chart, Cornerstone Financial Holdings ranks #756 out of 946 companies in the Media - Diversified industry, which is in the bottom quartile relative to peers. Overall, Cornerstone Financial Holdings has a GF Score™ of 42/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cornerstone Financial Holdings' ROE % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Cornerstone Financial Holdings ranks #756 out of 946 companies for ROE %. This places Cornerstone Financial Holdings in the lower half of its industry. The industry median ROE % is 2.48. Cornerstone Financial Holdings' value of 5.78% is 133.5% 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 Media - Diversified company?
The median ROE % among Media - Diversified companies is 2.48, based on 946 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. Cornerstone Financial Holdings's current ROE % of 5.78% is 133.5% 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 Cornerstone Financial Holdings and its competitors. For the Media - Diversified industry, the median ROE % is 2.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cornerstone Financial Holdings's current ROE % is 5.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cornerstone Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Cornerstone Financial Holdings (HKSE:08112) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.16, compared to a current price of HK$0.12 — trading 24.4% below its estimated fair value. The current ROE % is 5.78% and 133.5% above the Media - Diversified industry median of 2.48. Cornerstone Financial Holdings' overall GF Score™ is 42/100 with 4 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 Cornerstone Financial Holdings (HKSE:08112), the current ROE % is 5.78% 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 Cornerstone Financial Holdings (HKSE:08112) Overvalued in 2026?
Based on GuruFocus' analysis, Cornerstone Financial Holdings stock appears to be undervalued.
The current stock price of HK$0.12 is trading 24.4% below its estimated GF Value™ of HK$0.16.
GuruFocus considers Cornerstone Financial Holdings to be Modestly Undervalued.
Key valuation signals for HKSE:08112:
ROE %: 5.78%
GF Value™: HK$0.16 vs. price of HK$0.12 (24.4% below fair value)
Industry Position: 133.5% above the Media - Diversified median (#756 of 946)
No single metric tells the full story. See the HKSE:08112 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cornerstone Financial Holdings Ltd is an investment holding company. Along with its subsidiaries, it operates in the following segments: Advertising and media, Financial services, and Retail of skin care products. The majority of its revenue is generated from the Advertising and media segment, which is mainly involved in creating and operating a network of flat-panel displays in elevator lobbies of office and commercial complexes, as well as residential buildings, to sell advertisements. The Financial services segment mainly includes securities dealings, brokerage business, and margin financing business. Geographically, the Group generates maximum revenue from Hong Kong and the rest from Singapore.
42GF Score
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