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.
* 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 Paper & Paper Products subindustry, PT Alkindo Naratama Tbk'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.
PT Alkindo Naratama Tbk ROE % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, PT Alkindo Naratama Tbk's ROE % distribution charts can be found below:
* The bar in red indicates where PT Alkindo Naratama Tbk'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.
PT Alkindo Naratama Tbk (ISX:ALDO) has a ROE % of 5.11% 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 PT Alkindo Naratama Tbk and its competitors. This is 38% below median its historical median of 8.28. According to the industry distribution chart, PT Alkindo Naratama Tbk ranks #110 out of 280 companies in the Forest Products industry, placing it in the top 39.3%.
Is PT Alkindo Naratama Tbk's ROE % too high?
PT Alkindo Naratama Tbk's current ROE % of 5.11% is 38% below median its 10-year median of 8.28. The Forest Products industry median ROE % is 2.07. PT Alkindo Naratama Tbk's value of 5.11% is 146.9% above this industry median. Based on the distribution chart, PT Alkindo Naratama Tbk ranks #110 out of 280 companies in the Forest Products industry, which is above the industry midpoint. Overall, PT Alkindo Naratama Tbk has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PT Alkindo Naratama Tbk's ROE % compare to SLVM?
According to the Forest Products industry distribution chart, PT Alkindo Naratama Tbk ranks #110 out of 280 companies for ROE %. This puts PT Alkindo Naratama Tbk in the upper half of its industry. The industry median ROE % is 2.07. PT Alkindo Naratama Tbk's value of 5.11% is 146.9% above this benchmark. While the company's 10-year median is 8.28 vs. the industry median of 2.07, PT Alkindo Naratama Tbk 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 Forest Products company?
The median ROE % among Forest Products companies is 2.07, based on 280 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. PT Alkindo Naratama Tbk's current ROE % of 5.11% is 146.9% 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 PT Alkindo Naratama Tbk and its competitors. For the Forest Products industry, the median ROE % is 2.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Alkindo Naratama Tbk's current ROE % is 5.11%, which is 38% below median its own 10-year median of 8.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Alkindo Naratama Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Alkindo Naratama Tbk (ISX:ALDO) is currently considered Modestly Overvalued. The stock's GF Value™ is Rp589.08, compared to a current price of Rp695.00 — trading 18% above its estimated fair value. The current ROE % is 5.11%, which is 38% below median its 10-year median of 8.28 and 146.9% above the Forest Products industry median of 2.07. PT Alkindo Naratama Tbk's overall GF Score™ is 71/100 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 PT Alkindo Naratama Tbk (ISX:ALDO), the current ROE % is 5.11% 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 PT Alkindo Naratama Tbk (ISX:ALDO) Overvalued in 2026?
Based on GuruFocus' analysis, PT Alkindo Naratama Tbk stock appears to be overvalued.
The current stock price of Rp695.00 is trading 18% above its estimated GF Value™ of Rp589.08.
GuruFocus considers PT Alkindo Naratama Tbk to be Modestly Overvalued.
Key valuation signals for ISX:ALDO:
ROE %: 5.11% (38% below median its 10-year median of 8.28)
GF Value™: Rp589.08 vs. price of Rp695.00 (18% above fair value)
Industry Position: 146.9% above the Forest Products median (#110 of 280)
No single metric tells the full story. See the ISX:ALDO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Alkindo Naratama Tbk is an Indonesian business group engaged in providing solutions in the field of integrated paper production and chemicals. It converts waste paper into various paper packaging products such as papercore, paperbox, paperbag, papercup, paperbowl, hexa wrap, etc. Additionally, it offers industrial paper solutions by recycling used cardboard into jumbo rolls of brown paper into products such as Kraft Liner, Eco Board, and Core Board. In the Chemicals business, the Group offers water-based polymers, textile dyes, and other chemicals under brands and trademarks like Alfachem, Alfabond, Alfacoat, and Archroma. The Group's operating business segments are: Paper, which generates the maximum revenue, and Chemicals and others.
71GF Score
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