Master Drilling GroupJSE:MDI 84 ROE % is 11.85% as of Dec. 2025, which is 1% below its 10-year median of 11.91. GuruFocus rates JSE:MDI with a GF Score™ of 84/100 and a GF Value™ of R14.20 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,744 Construction companies, Master Drilling Group ranks better than 76.95% on this metric.
The historical rank and industry rank for Master Drilling Group's ROE % or its related term are showing as below:
JSE:MDI'
s ROE % Range Over the Past 10 Years
Min: 2.05 Med: 11.91 Max: 17.62
Current: 14.96
During the past 13 years, Master Drilling Group's highest ROE % was 17.62%. The lowest was 2.05%. And the median was 11.91%.
JSE:MDI's ROE % is ranked better than 76.95% of 1744
companies
in the Construction industry
Industry Median: 6.705
vs JSE:MDI: 14.96
Master Drilling Group (JSE:MDI) 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 Engineering & Construction subindustry, Master Drilling 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.
Master Drilling Group ROE % vs Construction Industry
For the Construction industry and Industrials sector, Master Drilling Group's ROE % distribution charts can be found below:
* The bar in red indicates where Master Drilling 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.
Master Drilling Group (JSE:MDI) has a ROE % of 11.85% 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 Master Drilling Group and its competitors. This is near median its historical median of 11.91. Over the past decade, Master Drilling Group's ROE % has ranged from 2.05 to 17.62. According to the industry distribution chart, Master Drilling Group ranks #402 out of 1744 companies in the Construction industry, placing it in the top 23.1%.
Is Master Drilling Group's ROE % too high?
Master Drilling Group's current ROE % of 11.85% is near median its 10-year median of 11.91. Over the past 10 years, this metric has ranged from a low of 2.05 to a high of 17.62. The Construction industry median ROE % is 6.71. Master Drilling Group's value of 11.85% is 76.7% above this industry median. Based on the distribution chart, Master Drilling Group ranks #402 out of 1744 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Master Drilling Group has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Master Drilling Group's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Master Drilling Group ranks #402 out of 1744 companies for ROE %. This places Master Drilling Group in the top 23% of its industry — outperforming the majority of peers. The industry median ROE % is 6.71. Master Drilling Group's value of 11.85% is 76.7% above this benchmark. Historically, Master Drilling Group's own ROE % has ranged from 2.05 to 17.62 over the past decade. While the company's 10-year median is 11.91 vs. the industry median of 6.71, Master Drilling Group 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 Construction company?
The median ROE % among Construction companies is 6.71, based on 1,744 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. Master Drilling Group's current ROE % of 11.85% is 76.7% 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 Master Drilling Group and its competitors. For the Construction industry, the median ROE % is 6.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Master Drilling Group's current ROE % is 11.85%, which is near median its own 10-year median of 11.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Master Drilling Group stock overvalued right now?
Based on GuruFocus' analysis, Master Drilling Group (JSE:MDI) is currently considered Modestly Overvalued. The stock's GF Value™ is R14.20, compared to a current price of R16.00 — trading 12.7% above its estimated fair value. The current ROE % is 11.85%, which is near median its 10-year median of 11.91 and 76.7% above the Construction industry median of 6.71. Master Drilling Group's overall GF Score™ is 84/100 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 Master Drilling Group (JSE:MDI), the current ROE % is 11.85% 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 Master Drilling Group (JSE:MDI) Overvalued in 2026?
Based on GuruFocus' analysis, Master Drilling Group stock appears to be overvalued.
The current stock price of R16.00 is trading 12.7% above its estimated GF Value™ of R14.20.
GuruFocus considers Master Drilling Group to be Modestly Overvalued.
Key valuation signals for JSE:MDI:
ROE %: 11.85% (near median its 10-year median of 11.91)
GF Value™: R14.20 vs. price of R16.00 (12.7% above fair value)
Industry Position: 76.7% above the Construction median (#402 of 1744)
No single metric tells the full story. See the JSE:MDI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Master Drilling Group Ltd is an investment holding company. The company along with its subsidiary companies is engaged in providing specialized drilling services and solutions that enforce business rules, optimize output, safeguard miners, protect/manage assets and locate missing persons for blue-chip and mid-tier companies in the mining, civil engineering, construction and hydroelectric power sectors across a number of commodities and geographies. Its activities include the Sale of industrial products, Raise boring, Support services, Slim drilling, and New rock boring technology.
84GF Score
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