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Neutech GroupHKSE:09616 +0.23%84 ROE % is 16.97% as of Dec. 2025, which is 25% below its 10-year median of 22.48. GuruFocus rates HKSE:09616 with a GF Score™ of 84/100 and a GF Value™ of HK$3.46 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 260 Education companies, Neutech Group ranks better than 76.15% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Neutech Group's annualized net income for the quarter that ended in Dec. 2025 was HK$444 Mil. Neutech Group's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was HK$2,616 Mil. Therefore, Neutech Group's annualized ROE % for the quarter that ended in Dec. 2025 was 16.97%.
The historical rank and industry rank for Neutech Group's ROE % or its related term are showing as below:
HKSE:09616'
s ROE % Range Over the Past 10 Years
Min: 6.95 Med: 22.48 Max: 27.52
Current: 17.34
During the past 9 years, Neutech Group's highest ROE % was 27.52%. The lowest was 6.95%. And the median was 22.48%.
HKSE:09616's ROE % is ranked better than 76.15% of 260
companies
in the Education industry
Industry Median: 7.45
vs HKSE:09616: 17.34
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.
Neutech Group ROE % Related Terms
Neutech Group ROE % Historical Data
* Premium members only.
The historical data trend for Neutech Group'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 Education & Training Services subindustry, Neutech Group'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.
Neutech Group ROE % vs Education Industry
For the Education industry and Consumer Defensive sector, Neutech Group's ROE % distribution charts can be found below:
* The bar in red indicates where Neutech Group'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.
Neutech Group (HKSE:09616) has a ROE % of 16.97% 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 Neutech Group and its competitors. This is 25% below median its historical median of 22.48. Over the past decade, Neutech Group's ROE % has ranged from 6.95 to 27.52. According to the industry distribution chart, Neutech Group ranks #62 out of 260 companies in the Education industry, placing it in the top 23.8%.
Is Neutech Group's ROE % too high?
Neutech Group's current ROE % of 16.97% is 25% below median its 10-year median of 22.48. Over the past 10 years, this metric has ranged from a low of 6.95 to a high of 27.52. The Education industry median ROE % is 7.45. Neutech Group's value of 16.97% is 127.8% above this industry median. Based on the distribution chart, Neutech Group ranks #62 out of 260 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Neutech Group has a GF Score™ of 84/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Neutech Group's ROE % compare to EDU and TAL?
According to the Education industry distribution chart, Neutech Group ranks #62 out of 260 companies for ROE %. This places Neutech Group in the top 24% of its industry — outperforming the majority of peers. The industry median ROE % is 7.45. Neutech Group's value of 16.97% is 127.8% above this benchmark. Historically, Neutech Group's own ROE % has ranged from 6.95 to 27.52 over the past decade. While the company's 10-year median is 22.48 vs. the industry median of 7.45, Neutech Group 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 an Education company?
The median ROE % among Education companies is 7.45, based on 260 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. Neutech Group's current ROE % of 16.97% is 127.8% 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 Neutech Group and its competitors. For the Education industry, the median ROE % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neutech Group's current ROE % is 16.97%, which is 25% below median its own 10-year median of 22.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neutech Group stock overvalued right now?
Based on GuruFocus' analysis, Neutech Group (HKSE:09616) is currently considered Possible Value Trap. The stock's GF Value™ is HK$3.46, compared to a current price of HK$2.14 — trading 38.2% below its estimated fair value. The current ROE % is 16.97%, which is 25% below median its 10-year median of 22.48 and 127.8% above the Education industry median of 7.45. Neutech Group's overall GF Score™ is 84/100 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 Neutech Group (HKSE:09616), the current ROE % is 16.97% 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 Neutech Group (HKSE:09616) Overvalued in 2026?
Based on GuruFocus' analysis, Neutech Group stock appears to be undervalued.
The current stock price of HK$2.14 is trading 38.2% below its estimated GF Value™ of HK$3.46.
GuruFocus considers Neutech Group to be Possible Value Trap.
Key valuation signals for HKSE:09616:
ROE %: 16.97% (25% below median its 10-year median of 22.48)
GF Value™: HK$3.46 vs. price of HK$2.14 (38.2% below fair value)
Industry Position: 127.8% above the Education median (#62 of 260)
No single metric tells the full story. See the HKSE:09616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Neutech Group Ltd is a China-based investment holding company principally engaged in providing full-time formal higher education services, continuing education services, as well as education resources and apprenticeship programmes. Its full-time formal higher education services and continuing education services are operated by three universities and eight training schools. Its education resources and apprenticeship programme are offered by few of its subsidiaries. Its operating segments are as follows: education services; medical services; industry management and services; and elderly care technology and services. It generates maximum revenue from Education services segment. The Group operated within one geographical location and all of its revenue is also generated from Chinese mainland.
84GF Score
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