Harvey Norman HoldingsHNORY 72 ROE % is 13.40% as of Dec. 2025, which is 1% above its 10-year median of 13.32. GuruFocus rates HNORY with a GF Score™ of 72/100 and a GF Value™ of $10.78 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,097 Retail - Cyclical companies, Harvey Norman Holdings ranks better than 65.72% on this metric.
The historical rank and industry rank for Harvey Norman Holdings's ROE % or its related term are showing as below:
HNORY'
s ROE % Range Over the Past 10 Years
Min: 7.89 Med: 13.32 Max: 23.02
Current: 11.69
During the past 13 years, Harvey Norman Holdings's highest ROE % was 23.02%. The lowest was 7.89%. And the median was 13.32%.
HNORY's ROE % is ranked better than 65.72% of 1097
companies
in the Retail - Cyclical industry
Industry Median: 6.46
vs HNORY: 11.69
Harvey Norman Holdings (OTCPK:HNORY) 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.
* 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 Specialty Retail subindustry, Harvey Norman 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.
Harvey Norman Holdings ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Harvey Norman Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Harvey Norman Holdings'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.
Harvey Norman Holdings (HNORY) has a ROE % of 13.40% 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 Harvey Norman Holdings and its competitors. This is near median its historical median of 13.32. Over the past decade, Harvey Norman Holdings' ROE % has ranged from 7.89 to 23.02. According to the industry distribution chart, Harvey Norman Holdings ranks #376 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 34.3%.
Is Harvey Norman Holdings' ROE % too high?
Harvey Norman Holdings' current ROE % of 13.40% is near median its 10-year median of 13.32. Over the past 10 years, this metric has ranged from a low of 7.89 to a high of 23.02. The Retail - Cyclical industry median ROE % is 6.46. Harvey Norman Holdings' value of 13.40% is 107.4% above this industry median. Based on the distribution chart, Harvey Norman Holdings ranks #376 out of 1097 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Harvey Norman Holdings has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Harvey Norman Holdings' ROE % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Harvey Norman Holdings ranks #376 out of 1097 companies for ROE %. This puts Harvey Norman Holdings in the upper half of its industry. The industry median ROE % is 6.46. Harvey Norman Holdings' value of 13.40% is 107.4% above this benchmark. Historically, Harvey Norman Holdings' own ROE % has ranged from 7.89 to 23.02 over the past decade. While the company's 10-year median is 13.32 vs. the industry median of 6.46, Harvey Norman Holdings 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 Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.46, based on 1,097 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. Harvey Norman Holdings's current ROE % of 13.40% is 107.4% 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 Harvey Norman Holdings and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Harvey Norman Holdings's current ROE % is 13.40%, which is near median its own 10-year median of 13.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harvey Norman Holdings stock overvalued right now?
Based on GuruFocus' analysis, Harvey Norman Holdings (HNORY) is currently considered Significantly Overvalued. The stock's GF Value™ is $10.78, compared to a current price of $15.62 — trading 44.9% above its estimated fair value. The current ROE % is 13.40%, which is near median its 10-year median of 13.32 and 107.4% above the Retail - Cyclical industry median of 6.46. Harvey Norman Holdings' overall GF Score™ is 72/100 with 5 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 Harvey Norman Holdings (HNORY), the current ROE % is 13.40% 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 Harvey Norman Holdings (HNORY) Overvalued in 2026?
Based on GuruFocus' analysis, Harvey Norman Holdings stock appears to be overvalued.
The current stock price of $15.62 is trading 44.9% above its estimated GF Value™ of $10.78.
GuruFocus considers Harvey Norman Holdings to be Significantly Overvalued.
Key valuation signals for HNORY:
ROE %: 13.40% (near median its 10-year median of 13.32)
GF Value™: $10.78 vs. price of $15.62 (44.9% above fair value)
Industry Position: 107.4% above the Retail - Cyclical median (#376 of 1097)
No single metric tells the full story. See the HNORY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harvey Norman Holdings Limited is the franchisor of Harvey Norman, a leading Australia-based retailer that sells goods from the electrical, computer, furniture, entertainment, and bedding sectors. The majority of earnings are generated in Australia, with the international divisions gradually growing in significance.
72GF Score
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