Lotte Chemical PakistanKAR:LOTCHEM -0.07%72 ROE % is 28.79% as of Mar. 2026, which is 63% above its 10-year median of 17.65. GuruFocus rates KAR:LOTCHEM with a GF Score™ of 72/100 and a GF Value™ of ₨18.69 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,581 Chemicals companies, Lotte Chemical Pakistan ranks better than 67.49% on this metric.
The historical rank and industry rank for Lotte Chemical Pakistan's ROE % or its related term are showing as below:
KAR:LOTCHEM'
s ROE % Range Over the Past 10 Years
Min: 3.2 Med: 17.65 Max: 48.19
Current: 8.74
During the past 13 years, Lotte Chemical Pakistan's highest ROE % was 48.19%. The lowest was 3.20%. And the median was 17.65%.
KAR:LOTCHEM's ROE % is ranked better than 67.49% of 1581
companies
in the Chemicals industry
Industry Median: 5.21
vs KAR:LOTCHEM: 8.74
Lotte Chemical Pakistan (KAR:LOTCHEM) 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.
* 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 Chemicals subindustry, Lotte Chemical Pakistan'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.
Lotte Chemical Pakistan ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Lotte Chemical Pakistan's ROE % distribution charts can be found below:
* The bar in red indicates where Lotte Chemical Pakistan'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.
Lotte Chemical Pakistan (KAR:LOTCHEM) has a ROE % of 28.79% 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 Lotte Chemical Pakistan and its competitors. This is 63% above median its historical median of 17.65. Over the past decade, Lotte Chemical Pakistan's ROE % has ranged from 3.20 to 48.19. According to the industry distribution chart, Lotte Chemical Pakistan ranks #514 out of 1581 companies in the Chemicals industry, placing it in the top 32.5%.
Is Lotte Chemical Pakistan's ROE % too high?
Lotte Chemical Pakistan's current ROE % of 28.79% is 63% above median its 10-year median of 17.65. Over the past 10 years, this metric has ranged from a low of 3.20 to a high of 48.19. The Chemicals industry median ROE % is 5.21. Lotte Chemical Pakistan's value of 28.79% is 452.6% above this industry median. Based on the distribution chart, Lotte Chemical Pakistan ranks #514 out of 1581 companies in the Chemicals industry, which is above the industry midpoint. Overall, Lotte Chemical Pakistan has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lotte Chemical Pakistan's ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Lotte Chemical Pakistan ranks #514 out of 1581 companies for ROE %. This puts Lotte Chemical Pakistan in the upper half of its industry. The industry median ROE % is 5.21. Lotte Chemical Pakistan's value of 28.79% is 452.6% above this benchmark. Historically, Lotte Chemical Pakistan's own ROE % has ranged from 3.20 to 48.19 over the past decade. While the company's 10-year median is 17.65 vs. the industry median of 5.21, Lotte Chemical Pakistan 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 Chemicals company?
The median ROE % among Chemicals companies is 5.21, based on 1,581 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. Lotte Chemical Pakistan's current ROE % of 28.79% is 452.6% 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 Lotte Chemical Pakistan and its competitors. For the Chemicals industry, the median ROE % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lotte Chemical Pakistan's current ROE % is 28.79%, which is 63% above median its own 10-year median of 17.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lotte Chemical Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Lotte Chemical Pakistan (KAR:LOTCHEM) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨18.69, compared to a current price of ₨30.54 — trading 63.4% above its estimated fair value. The current ROE % is 28.79%, which is 63% above median its 10-year median of 17.65 and 452.6% above the Chemicals industry median of 5.21. Lotte Chemical Pakistan's overall GF Score™ is 72/100 with 9 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 Lotte Chemical Pakistan (KAR:LOTCHEM), the current ROE % is 28.79% 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 Lotte Chemical Pakistan (KAR:LOTCHEM) Overvalued in 2026?
Based on GuruFocus' analysis, Lotte Chemical Pakistan stock appears to be overvalued.
The current stock price of ₨30.54 is trading 63.4% above its estimated GF Value™ of ₨18.69.
GuruFocus considers Lotte Chemical Pakistan to be Significantly Overvalued.
Key valuation signals for KAR:LOTCHEM:
ROE %: 28.79% (63% above median its 10-year median of 17.65)
GF Value™: ₨18.69 vs. price of ₨30.54 (63.4% above fair value)
Industry Position: 452.6% above the Chemicals median (#514 of 1581)
No single metric tells the full story. See the KAR:LOTCHEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lotte Chemical Pakistan Ltd is engaged in the manufacture and sale of Purified Terephthalic Acid (PTA). PTA is a key raw material used in the production of polyester fiber, polyester filament yarn, polyester film, and polyethylene terephthalate (PET).
72GF Score
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