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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.
Transtech Optelecom Science Holdings ROE % Related Terms
Transtech Optelecom Science 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 Communication Equipment subindustry, Transtech Optelecom Science 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.
Transtech Optelecom Science Holdings ROE % vs Hardware Industry
* 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.
Transtech Optelecom Science Holdings (HKSE:09963) has a ROE % of -54.51% 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 Transtech Optelecom Science Holdings and its competitors. According to the industry distribution chart, Transtech Optelecom Science Holdings ranks #2219 out of 2430 companies in the Hardware industry, placing it in the top 91.3%.
Is Transtech Optelecom Science Holdings' ROE % too high?
Transtech Optelecom Science Holdings' current ROE % is -54.51%. Based on the distribution chart, Transtech Optelecom Science Holdings ranks #2219 out of 2430 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Transtech Optelecom Science Holdings has a GF Score™ of 33/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Transtech Optelecom Science Holdings' ROE % compare to CSCO and MSI?
According to the Hardware industry distribution chart, Transtech Optelecom Science Holdings ranks #2219 out of 2430 companies for ROE %. This places Transtech Optelecom Science Holdings in the lower half of its industry. The industry median ROE % is 5.24. 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 Hardware company?
The median ROE % among Hardware companies is 5.24, based on 2,430 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 Transtech Optelecom Science Holdings and its competitors. For the Hardware industry, the median ROE % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Transtech Optelecom Science Holdings's current ROE % is -54.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Transtech Optelecom Science Holdings stock overvalued right now?
Based on GuruFocus' analysis, Transtech Optelecom Science Holdings (HKSE:09963) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.14, compared to a current price of HK$10.34 — trading 7285.7% above its estimated fair value. The current ROE % is -54.51%. Transtech Optelecom Science Holdings' overall GF Score™ is 33/100 with 7 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 Transtech Optelecom Science Holdings (HKSE:09963), the current ROE % is -54.51% 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 Transtech Optelecom Science Holdings (HKSE:09963) Overvalued in 2026?
Based on GuruFocus' analysis, Transtech Optelecom Science Holdings stock appears to be overvalued.
The current stock price of HK$10.34 is trading 7285.7% above its estimated GF Value™ of HK$0.14.
GuruFocus considers Transtech Optelecom Science Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:09963:
ROE %: -54.51%
GF Value™: HK$0.14 vs. price of HK$10.34 (7285.7% above fair value)
No single metric tells the full story. See the HKSE:09963 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Transtech Optelecom Science Holdings Ltd is engaged in the manufacturing and sale of optical fibre in Hong Kong and optical fibre cable, flame-retardant optical fibre cable and non-metallic optical fibre cable and related products in Thailand. The company has two segments, namely Optical fibre cables, optical cable cores and other related products, which is located in Thailand; and Optical fibres, which is located in Hong Kong. The maximum revenue is earned from Thailand.
33GF Score
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