HMS Networks ABHMNKF 96 ROE % is 18.00% as of Mar. 2026, which is 16% below its 10-year median of 21.37. GuruFocus rates HMNKF with a GF Score™ of 96/100 and a GF Value™ of $53.16 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,423 Hardware companies, HMS Networks AB ranks better than 80.93% on this metric.
The historical rank and industry rank for HMS Networks AB's ROE % or its related term are showing as below:
HMNKF'
s ROE % Range Over the Past 10 Years
Min: 11.39 Med: 21.37 Max: 36.44
Current: 13.89
During the past 13 years, HMS Networks AB's highest ROE % was 36.44%. The lowest was 11.39%. And the median was 21.37%.
HMNKF's ROE % is ranked better than 80.93% of 2423
companies
in the Hardware industry
Industry Median: 4.61
vs HMNKF: 13.89
HMS Networks AB (OTCPK:HMNKF) 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) 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.
HMS Networks AB ROE % Related Terms
HMS Networks AB ROE % Historical Data
* Premium members only.
The historical data trend for HMS Networks AB'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 Communication Equipment subindustry, HMS Networks AB'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.
HMS Networks AB ROE % vs Hardware Industry
For the Hardware industry and Technology sector, HMS Networks AB's ROE % distribution charts can be found below:
* The bar in red indicates where HMS Networks AB'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 four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
HMS Networks AB (HMNKF) has a ROE % of 18.00% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on HMS Networks AB and its competitors. This is 16% below median its historical median of 21.37. Over the past decade, HMS Networks AB's ROE % has ranged from 11.39 to 36.44. According to the industry distribution chart, HMS Networks AB ranks #462 out of 2423 companies in the Hardware industry, placing it in the top 19.1%.
Is HMS Networks AB's ROE % too high?
HMS Networks AB's current ROE % of 18.00% is 16% below median its 10-year median of 21.37. Over the past 10 years, this metric has ranged from a low of 11.39 to a high of 36.44. The Hardware industry median ROE % is 4.61. HMS Networks AB's value of 18.00% is 290.5% above this industry median. Based on the distribution chart, HMS Networks AB ranks #462 out of 2423 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, HMS Networks AB has a GF Score™ of 96/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HMS Networks AB's ROE % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, HMS Networks AB ranks #462 out of 2423 companies for ROE %. This places HMS Networks AB in the top 19% of its industry — outperforming the majority of peers. The industry median ROE % is 4.61. HMS Networks AB's value of 18.00% is 290.5% above this benchmark. Historically, HMS Networks AB's own ROE % has ranged from 11.39 to 36.44 over the past decade. While the company's 10-year median is 21.37 vs. the industry median of 4.61, HMS Networks AB 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 a Hardware company?
The median ROE % among Hardware companies is 4.61, based on 2,423 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. HMS Networks AB's current ROE % of 18.00% is 290.5% 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 HMS Networks AB and its competitors. For the Hardware industry, the median ROE % is 4.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HMS Networks AB's current ROE % is 18.00%, which is 16% below median its own 10-year median of 21.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HMS Networks AB stock overvalued right now?
Based on GuruFocus' analysis, HMS Networks AB (HMNKF) is currently considered Modestly Overvalued. The stock's GF Value™ is $53.16, compared to a current price of $59.75 — trading 12.4% above its estimated fair value. The current ROE % is 18.00%, which is 16% below median its 10-year median of 21.37 and 290.5% above the Hardware industry median of 4.61. HMS Networks AB's overall GF Score™ is 96/100 with 2 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 HMS Networks AB (HMNKF), the current ROE % is 18.00% as of Mar. 2026. 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 HMS Networks AB (HMNKF) Overvalued in 2026?
Based on GuruFocus' analysis, HMS Networks AB stock appears to be overvalued.
The current stock price of $59.75 is trading 12.4% above its estimated GF Value™ of $53.16.
GuruFocus considers HMS Networks AB to be Modestly Overvalued.
Key valuation signals for HMNKF:
ROE %: 18.00% (16% below median its 10-year median of 21.37)
GF Value™: $53.16 vs. price of $59.75 (12.4% above fair value)
Industry Position: 290.5% above the Hardware median (#462 of 2423)
No single metric tells the full story. See the HMNKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HMS Networks AB supplies proprietary, patented technology for intelligent industrial communication. It develops and manufactures solutions for connecting industrial products to networks and gateways, thus enabling interconnection between various networks. The group sells products in various countries, including Germany. Its operating segments include Industrial Data Solutions, Industrial Network Technology, and New Industries. The brands of the company are Anybus, Red Lion, N-Tron, Ewon, Intesis, Ixxat, Owasys, and PEAK-System.
96GF Score
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