ItaltileJSE:ITE +5.15%78 ROE % is 18.83% as of Dec. 2025, which is 20% below its 10-year median of 23.52. GuruFocus rates JSE:ITE with a GF Score™ of 78/100 and a GF Value™ of R12.02 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,097 Retail - Cyclical companies, Italtile ranks better than 78.58% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Italtile's annualized net income for the quarter that ended in Dec. 2025 was R1,452 Mil. Italtile's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was R7,710 Mil. Therefore, Italtile's annualized ROE % for the quarter that ended in Dec. 2025 was 18.83%.
The historical rank and industry rank for Italtile's ROE % or its related term are showing as below:
JSE:ITE'
s ROE % Range Over the Past 10 Years
Min: 17.62 Med: 23.52 Max: 29.4
Current: 17.83
During the past 13 years, Italtile's highest ROE % was 29.40%. The lowest was 17.62%. And the median was 23.52%.
JSE:ITE's ROE % is ranked better than 78.58% of 1097
companies
in the Retail - Cyclical industry
Industry Median: 6.46
vs JSE:ITE: 17.83
Italtile (JSE:ITE) 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.
Italtile ROE % Related Terms
Italtile ROE % Historical Data
* Premium members only.
The historical data trend for Italtile'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 Home Improvement Retail subindustry, Italtile'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.
Italtile ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Italtile's ROE % distribution charts can be found below:
* The bar in red indicates where Italtile'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.
Italtile (JSE:ITE) has a ROE % of 18.83% 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 Italtile and its competitors. This is 20% below median its historical median of 23.52. Over the past decade, Italtile's ROE % has ranged from 17.62 to 29.40. According to the industry distribution chart, Italtile ranks #235 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 21.4%.
Is Italtile's ROE % too high?
Italtile's current ROE % of 18.83% is 20% below median its 10-year median of 23.52. Over the past 10 years, this metric has ranged from a low of 17.62 to a high of 29.40. The Retail - Cyclical industry median ROE % is 6.46. Italtile's value of 18.83% is 191.5% above this industry median. Based on the distribution chart, Italtile ranks #235 out of 1097 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Italtile has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Italtile's ROE % compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Italtile ranks #235 out of 1097 companies for ROE %. This places Italtile in the top 21% of its industry — outperforming the majority of peers. The industry median ROE % is 6.46. Italtile's value of 18.83% is 191.5% above this benchmark. Historically, Italtile's own ROE % has ranged from 17.62 to 29.40 over the past decade. While the company's 10-year median is 23.52 vs. the industry median of 6.46, Italtile 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. Italtile's current ROE % of 18.83% is 191.5% 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 Italtile 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. Italtile's current ROE % is 18.83%, which is 20% below median its own 10-year median of 23.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Italtile stock overvalued right now?
Based on GuruFocus' analysis, Italtile (JSE:ITE) is currently considered Modestly Undervalued. The stock's GF Value™ is R12.02, compared to a current price of R9.40 — trading 21.8% below its estimated fair value. The current ROE % is 18.83%, which is 20% below median its 10-year median of 23.52 and 191.5% above the Retail - Cyclical industry median of 6.46. Italtile's overall GF Score™ is 78/100 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 Italtile (JSE:ITE), the current ROE % is 18.83% 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 Italtile (JSE:ITE) Overvalued in 2026?
Based on GuruFocus' analysis, Italtile stock appears to be undervalued.
The current stock price of R9.40 is trading 21.8% below its estimated GF Value™ of R12.02.
GuruFocus considers Italtile to be Modestly Undervalued.
Key valuation signals for JSE:ITE:
ROE %: 18.83% (20% below median its 10-year median of 23.52)
GF Value™: R12.02 vs. price of R9.40 (21.8% below fair value)
Industry Position: 191.5% above the Retail - Cyclical median (#235 of 1097)
No single metric tells the full story. See the JSE:ITE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Italtile Ltd is a South Africa-based retailer of imported and local ceramic tiles, bathroom accessories, and related products. Its core business segments into five areas: retail, franchising, properties, manufacturing, and supply and support services. The company's four brands - Italtile, CTM, topT, and U-Light -provide tiles, bath fixtures, home finishing products, lighting, and other accessories. Its manufacturing includes the production of tiles, sanitaryware, baths, adhesive and related products. Italtile derives the majority of its pretax profit from South Africa, predominantly from its retail segment and secondarily from its manufacturing operations.
78GF Score
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