Hongli GroupHLP +8.35%36 ROE % is 3.36% as of Dec. 2025, which is 86% below its 10-year median of 23.49. GuruFocus rates HLP with a GF Score™ of 36/100 and a GF Value™ of $0.35 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 622 Steel companies, Hongli Group ranks worse than 50.8% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hongli Group's annualized net income for the quarter that ended in Dec. 2025 was $1.91 Mil. Hongli Group's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was $56.67 Mil. Therefore, Hongli Group's annualized ROE % for the quarter that ended in Dec. 2025 was 3.36%.
The historical rank and industry rank for Hongli Group's ROE % or its related term are showing as below:
HLP'
s ROE % Range Over the Past 10 Years
Min: -5.05 Med: 23.49 Max: 40.39
Current: 3.49
During the past 7 years, Hongli Group's highest ROE % was 40.39%. The lowest was -5.05%. And the median was 23.49%.
HLP's ROE % is ranked worse than 50.8% of 622
companies
in the Steel industry
Industry Median: 3.69
vs HLP: 3.49
Hongli Group (NAS:HLP) 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.
Hongli Group ROE % Related Terms
Hongli Group ROE % Historical Data
* Premium members only.
The historical data trend for Hongli 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 Steel subindustry, Hongli 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.
Hongli Group ROE % vs Steel Industry
For the Steel industry and Basic Materials sector, Hongli Group's ROE % distribution charts can be found below:
* The bar in red indicates where Hongli 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.
Hongli Group (HLP) has a ROE % of 3.36% 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 Hongli Group and its competitors. This is 86% below median its historical median of 23.49. According to the industry distribution chart, Hongli Group ranks #316 out of 622 companies in the Steel industry, placing it in the top 50.8%.
Is Hongli Group's ROE % too high?
Hongli Group's current ROE % of 3.36% is 86% below median its 10-year median of 23.49. The Steel industry median ROE % is 3.69. Hongli Group's value of 3.36% is 8.9% below this industry median. Based on the distribution chart, Hongli Group ranks #316 out of 622 companies in the Steel industry, which is below the industry midpoint. Overall, Hongli Group has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hongli Group's ROE % compare to HUDI and ZKIN?
According to the Steel industry distribution chart, Hongli Group ranks #316 out of 622 companies for ROE %. This places Hongli Group in the lower half of its industry. The industry median ROE % is 3.69. Hongli Group's value of 3.36% is 8.9% below this benchmark. While the company's 10-year median is 23.49 vs. the industry median of 3.69, Hongli Group has consistently been below 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 a Steel company?
The median ROE % among Steel companies is 3.69, based on 622 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. Hongli Group's current ROE % of 3.36% is 8.9% below 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 Hongli Group and its competitors. For the Steel industry, the median ROE % is 3.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongli Group's current ROE % is 3.36%, which is 86% below median its own 10-year median of 23.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongli Group stock overvalued right now?
Based on GuruFocus' analysis, Hongli Group (HLP) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.35, compared to a current price of $0.53 — trading 50.5% above its estimated fair value. The current ROE % is 3.36%, which is 86% below median its 10-year median of 23.49 and 8.9% below the Steel industry median of 3.69. Hongli Group's overall GF Score™ is 36/100 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 Hongli Group (HLP), the current ROE % is 3.36% 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 Hongli Group (HLP) Overvalued in 2026?
Based on GuruFocus' analysis, Hongli Group stock appears to be overvalued.
The current stock price of $0.53 is trading 50.5% above its estimated GF Value™ of $0.35.
GuruFocus considers Hongli Group to be Significantly Overvalued.
Key valuation signals for HLP:
ROE %: 3.36% (86% below median its 10-year median of 23.49)
GF Value™: $0.35 vs. price of $0.53 (50.5% above fair value)
Industry Position: 8.9% below the Steel median (#316 of 622)
No single metric tells the full story. See the HLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongli Group Inc is an offshore holding company. Through its subsidiaries, it is engaged in the cold-rolled steel profile manufacturing in China. Its main business operation focuses on the design, production, deep processing, and sales of custom-made profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture, and transportation industries. The group operates in a single segment, which manufactures and sells agricultural machinery cab assemblies, construction machinery cab assemblies, excavator cab assemblies, and special-shaped steel pipes. It generates the majority of its reveneue from PRC.
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