HKVTY's ROE % is ranked worse than 64.61% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.62
vs HKVTY: 6.42
HK Electric Investments and HK Electric Investments (OTCPK:HKVTY) 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 (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.
HK Electric Investments and HK Electric Investments ROE % Related Terms
HK Electric Investments and HK Electric Investments 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.
HK Electric Investments and HK Electric Investments ROE % Chart
HK Electric Investments and HK Electric Investments Annual Data
* 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.
HK Electric Investments and HK Electric Investments ROE % vs Utilities - Regulated 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.
HK Electric Investments and HK Electric Investments (HKVTY) has a ROE % of 8.82% 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 HK Electric Investments and HK Electric Investments and its competitors. This is 41% above median its historical median of 6.27. Over the past decade, HK Electric Investments and HK Electric Investments' ROE % has ranged from 4.79 to 7.28. According to the industry distribution chart, HK Electric Investments and HK Electric Investments ranks #325 out of 503 companies in the Utilities - Regulated industry, placing it in the top 64.6%.
Is HK Electric Investments and HK Electric Investments' ROE % too high?
HK Electric Investments and HK Electric Investments' current ROE % of 8.82% is 41% above median its 10-year median of 6.27. Over the past 10 years, this metric has ranged from a low of 4.79 to a high of 7.28. The Utilities - Regulated industry median ROE % is 8.62. HK Electric Investments and HK Electric Investments' value of 8.82% is 2.3% above this industry median. Based on the distribution chart, HK Electric Investments and HK Electric Investments ranks #325 out of 503 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, HK Electric Investments and HK Electric Investments has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HK Electric Investments and HK Electric Investments' ROE % compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, HK Electric Investments and HK Electric Investments ranks #325 out of 503 companies for ROE %. This places HK Electric Investments and HK Electric Investments in the lower half of its industry. The industry median ROE % is 8.62. HK Electric Investments and HK Electric Investments' value of 8.82% is 2.3% above this benchmark. Historically, HK Electric Investments and HK Electric Investments' own ROE % has ranged from 4.79 to 7.28 over the past decade. While the company's 10-year median is 6.27 vs. the industry median of 8.62, HK Electric Investments and HK Electric Investments 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 Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.62, based on 503 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. HK Electric Investments and HK Electric Investments's current ROE % of 8.82% is 2.3% 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 HK Electric Investments and HK Electric Investments and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HK Electric Investments and HK Electric Investments's current ROE % is 8.82%, which is 41% above median its own 10-year median of 6.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HK Electric Investments and HK Electric Investments stock overvalued right now?
Based on GuruFocus' analysis, HK Electric Investments and HK Electric Investments (HKVTY) is currently considered Modestly Overvalued. The stock's GF Value™ is $6.77, compared to a current price of $7.80 — trading 15.2% above its estimated fair value. The current ROE % is 8.82%, which is 41% above median its 10-year median of 6.27 and 2.3% above the Utilities - Regulated industry median of 8.62. HK Electric Investments and HK Electric Investments' overall GF Score™ is 76/100 with 6 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 HK Electric Investments and HK Electric Investments (HKVTY), the current ROE % is 8.82% 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 HK Electric Investments and HK Electric Investments (HKVTY) Overvalued in 2026?
Based on GuruFocus' analysis, HK Electric Investments and HK Electric Investments stock appears to be overvalued.
The current stock price of $7.80 is trading 15.2% above its estimated GF Value™ of $6.77.
GuruFocus considers HK Electric Investments and HK Electric Investments to be Modestly Overvalued.
Key valuation signals for HKVTY:
ROE %: 8.82% (41% above median its 10-year median of 6.27)
GF Value™: $6.77 vs. price of $7.80 (15.2% above fair value)
Industry Position: 2.3% above the Utilities - Regulated median (#325 of 503)
No single metric tells the full story. See the HKVTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HK Electric Investments and HK Electric Investments Business Description
HK Electric Investments and HK Electric Investments Ltd is a fixed single investment trust in Hong Kong with a focus on the energy sector. The company is a vertically integrated power utility and its operations comprise the generation, transmission, distribution and supply of electricity to Hong Kong Island and Lamma Island. The company have one reporting segment which is the generation and supply of electricity to Hong Kong Island and Lamma Island.
76GF Score
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