Gulf Franchising Holding Co KSCC (KUW:GFC) ROE %: -34.40% (As of Mar. 2026)

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KUW:GFC Gulf Franchising Holding Co KSCC KUW:GFC
16 GF Score
Price KWD0.36
GF Value KWD0.22
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Gulf Franchising Holding Co KSCC ROE %?

Gulf Franchising Holding Co KSCC KUW:GFC -2.74% 16 ROE % is -34.40% as of Mar. 2026. GuruFocus rates KUW:GFC with a GF Score™ of 16/100 and a GF Value™ of KWD0.22 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,059 Business Services companies, Gulf Franchising Holding Co KSCC ranks better than 98.77% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Gulf Franchising Holding Co KSCC's annualized net income for the quarter that ended in Mar. 2026 was KWD-1.36 Mil. Gulf Franchising Holding Co KSCC's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was KWD3.95 Mil. Therefore, Gulf Franchising Holding Co KSCC's annualized ROE % for the quarter that ended in Mar. 2026 was -34.40%.

The historical rank and industry rank for Gulf Franchising Holding Co KSCC's ROE % or its related term are showing as below:

KUW:GFC' s ROE % Range Over the Past 10 Years
Min: -78.2   Med: -15.35   Max: 110.5
Current: 110.5

During the past 13 years, Gulf Franchising Holding Co KSCC's highest ROE % was 110.50%. The lowest was -78.20%. And the median was -15.35%.

KUW:GFC's ROE % is ranked better than
98.77% of 1059 companies
in the Business Services industry
Industry Median: 8.1 vs KUW:GFC: 110.50

Gulf Franchising Holding Co KSCC  (KUW:GFC) 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:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=-1.36/3.954
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1.36 / 13.832)*(13.832 / 29.1065)*(29.1065 / 3.954)
=Net Margin %*Asset Turnover*Equity Multiplier
=-9.83 %*0.4752*7.3613
=ROA %*Equity Multiplier
=-4.67 %*7.3613
=-34.40 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=-1.36/3.954
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-1.36 / -1.36) * (-1.36 / -0.348) * (-0.348 / 13.832) * (13.832 / 29.1065) * (29.1065 / 3.954)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 3.908 * -2.52 % * 0.4752 * 7.3613
=-34.40 %

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.


Gulf Franchising Holding Co KSCC ROE % Related Terms


Gulf Franchising Holding Co KSCC ROE % Historical Data

* Premium members only.

The historical data trend for Gulf Franchising Holding Co KSCC'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.

Gulf Franchising Holding Co KSCC ROE % Chart

Gulf Franchising Holding Co KSCC Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -12.96 5.74 -37.09 -17.74 104.78

Gulf Franchising Holding Co KSCC Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -7.52 -30.88 -39.46 472.84 -34.40

KUW:GFC vs CTAS, CPRT, ULS: ROE % Comparison

For the Specialty Business Services subindustry, Gulf Franchising Holding Co KSCC'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.


Gulf Franchising Holding Co KSCC ROE % vs Business Services Industry

For the Business Services industry and Industrials sector, Gulf Franchising Holding Co KSCC's ROE % distribution charts can be found below:

* The bar in red indicates where Gulf Franchising Holding Co KSCC's ROE % falls into.


KUW:GFC
16GF Score
Gulf Franchising Holding Co KSCC KUW:GFC
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Gulf Franchising Holding Co KSCC ROE % Calculation

Gulf Franchising Holding Co KSCC's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=2.836/( (1.289+4.124)/ 2 )
=2.836/2.7065
=104.78 %

Gulf Franchising Holding Co KSCC's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=-1.36/( (4.124+3.784)/ 2 )
=-1.36/3.954
=-34.40 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -34.40% mean?
Gulf Franchising Holding Co KSCC (KUW:GFC) has a ROE % of -34.40% 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 Gulf Franchising Holding Co KSCC and its competitors. According to the industry distribution chart, Gulf Franchising Holding Co KSCC ranks #13 out of 1059 companies in the Business Services industry, placing it in the top 1.2%.
Is Gulf Franchising Holding Co KSCC's ROE % too high?
Gulf Franchising Holding Co KSCC's current ROE % is -34.40%. Based on the distribution chart, Gulf Franchising Holding Co KSCC ranks #13 out of 1059 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Gulf Franchising Holding Co KSCC has a GF Score™ of 16/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gulf Franchising Holding Co KSCC's ROE % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Gulf Franchising Holding Co KSCC ranks #13 out of 1059 companies for ROE %. This places Gulf Franchising Holding Co KSCC in the top 1% of its industry — outperforming the majority of peers. The industry median ROE % is 8.10. 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 Business Services company?
The median ROE % among Business Services companies is 8.10, based on 1,059 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. 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 Gulf Franchising Holding Co KSCC and its competitors. For the Business Services industry, the median ROE % is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gulf Franchising Holding Co KSCC's current ROE % is -34.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gulf Franchising Holding Co KSCC stock overvalued right now?
Based on GuruFocus' analysis, Gulf Franchising Holding Co KSCC (KUW:GFC) is currently considered Significantly Overvalued. The stock's GF Value™ is KWD0.22, compared to a current price of KWD0.36 — trading 61.4% above its estimated fair value. The current ROE % is -34.40%. Gulf Franchising Holding Co KSCC's overall GF Score™ is 16/100 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 Gulf Franchising Holding Co KSCC (KUW:GFC), the current ROE % is -34.40% 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 Gulf Franchising Holding Co KSCC (KUW:GFC) Overvalued in 2026?

Based on GuruFocus' analysis, Gulf Franchising Holding Co KSCC stock appears to be overvalued. The current stock price of KWD0.36 is trading 61.4% above its estimated GF Value™ of KWD0.22. GuruFocus considers Gulf Franchising Holding Co KSCC to be Significantly Overvalued.

Key valuation signals for KUW:GFC:

  • ROE %: -34.40%
  • GF Value™: KWD0.22 vs. price of KWD0.36 (61.4% above fair value)
  • GF Score™: 16/100 with 5 warning signs

No single metric tells the full story. See the KUW:GFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Gulf Franchising Holding Co KSCC Business Description

Address Jaber Al Mubarak Street, Block 2, PO Box 21839, Plot 29, 7th Floor, Salah Fahd Sultan Building, Sharq, Safat, Kuwait, KWT, 13079
Gulf Franchising Holding Co KSCC is a franchise developer operating across the Gulf countries of Kuwait, the UAE, Bahrain, Saudi Arabia, Oman, and Qatar. The company offers franchising opportunities for the following brands: Computer Troubleshooters, Premiere Executive, Bon Sweets, Beit Dickson, and Adolfo Dominguez. Along with its subsidiaries, the company operates in the following segments: Investments, Trading, and Food Catering. Maximum revenue is generated from the Investments segment, which is engaged in the utilization of franchising activities, property ownership, and investment. The Trading segment is involved in general trading activities, and the Food Catering segment engages in the catering of foodstuffs.
16GF Score

Get the complete analysis for KUW:GFC

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

KWD0.36
Price
KWD0.22
GF Value