LHSW (Lianhe Sowell International Group) ROE %: -10.17% (As of Sep. 2025)


LHSW Lianhe Sowell International Group Ltd LHSW
20 GF Score
Price $1.47
! 5 Warning Signs
View Full Analysis

What is Lianhe Sowell International Group ROE %?

Lianhe Sowell International Group LHSW -10.37% 20 ROE % is -10.17% as of Sep. 2025. GuruFocus rates LHSW with a GF Score™ of 20/100. The stock has 5 warning signs investors should review. Among 2,682 Software companies, Lianhe Sowell International Group ranks better than 60.55% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Lianhe Sowell International Group's annualized net income for the quarter that ended in Sep. 2025 was $-1.47 Mil. Lianhe Sowell International Group's average Total Stockholders Equity over the quarter that ended in Sep. 2025 was $14.41 Mil. Therefore, Lianhe Sowell International Group's annualized ROE % for the quarter that ended in Sep. 2025 was -10.17%.

The historical rank and industry rank for Lianhe Sowell International Group's ROE % or its related term are showing as below:

LHSW' s ROE % Range Over the Past 10 Years
Min: -29.6   Med: 41.47   Max: 70.47
Current: 8.88

During the past 4 years, Lianhe Sowell International Group's highest ROE % was 70.47%. The lowest was -29.60%. And the median was 41.47%.

LHSW's ROE % is ranked better than
60.55% of 2682 companies
in the Software industry
Industry Median: 4.72 vs LHSW: 8.88

Lianhe Sowell International Group  (NAS:LHSW) 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: Sep. 2025 )
=Net Income/Total Stockholders Equity
=-1.466/14.4125
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-1.466 / 53.078)*(53.078 / 34.978)*(34.978 / 14.4125)
=Net Margin %*Asset Turnover*Equity Multiplier
=-2.76 %*1.5175*2.4269
=ROA %*Equity Multiplier
=-4.19 %*2.4269
=-10.17 %

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: Sep. 2025 )
=Net Income/Total Stockholders Equity
=-1.466/14.4125
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-1.466 / -2.018) * (-2.018 / -1.96) * (-1.96 / 53.078) * (53.078 / 34.978) * (34.978 / 14.4125)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7265 * 1.0296 * -3.69 % * 1.5175 * 2.4269
=-10.17 %

Note: The net income data used here is two times the semi-annual (Sep. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 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.

Lianhe Sowell International Group ROE % Related Terms

Lianhe Sowell International Group ROE % Historical Data

* Premium members only.

The historical data trend for Lianhe Sowell International Group'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.

Lianhe Sowell International Group ROE % Chart

Lianhe Sowell International Group Annual Data
Trend Mar22 Mar23 Mar24 Mar25
ROE %
-29.60 70.47 50.79 32.14

Lianhe Sowell International Group Semi-Annual Data
Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
ROE % Get a 7-Day Free Trial 66.51 35.07 28.28 35.08 -10.17

LHSW vs SDCH, DTSS, TGHL: ROE % Comparison

For the Software - Infrastructure subindustry, Lianhe Sowell International 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.

Lianhe Sowell International Group ROE % vs Software Industry

For the Software industry and Technology sector, Lianhe Sowell International Group's ROE % distribution charts can be found below:

* The bar in red indicates where Lianhe Sowell International Group's ROE % falls into.


LHSW
20GF Score
Lianhe Sowell International Group Ltd LHSW
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Lianhe Sowell International Group ROE % Calculation

Lianhe Sowell International Group's annualized ROE % for the fiscal year that ended in Mar. 2025 is calculated as

ROE %=Net Income (A: Mar. 2025 )/( (Total Stockholders Equity (A: Mar. 2024 )+Total Stockholders Equity (A: Mar. 2025 ))/ count )
=3.125/( (7.849+11.596)/ 2 )
=3.125/9.7225
=32.14 %

Lianhe Sowell International Group's annualized ROE % for the quarter that ended in Sep. 2025 is calculated as

ROE %=Net Income (Q: Sep. 2025 )/( (Total Stockholders Equity (Q: Mar. 2025 )+Total Stockholders Equity (Q: Sep. 2025 ))/ count )
=-1.466/( (11.596+17.229)/ 2 )
=-1.466/14.4125
=-10.17 %

* 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 (Sep. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -10.17% mean?
Lianhe Sowell International Group (LHSW) has a ROE % of -10.17% as of Sep. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Lianhe Sowell International Group and its competitors. According to the industry distribution chart, Lianhe Sowell International Group ranks #1058 out of 2682 companies in the Software industry, placing it in the top 39.4%.
Is Lianhe Sowell International Group's ROE % too high?
Lianhe Sowell International Group's current ROE % is -10.17%. Based on the distribution chart, Lianhe Sowell International Group ranks #1058 out of 2682 companies in the Software industry, which is above the industry midpoint. Overall, Lianhe Sowell International Group has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Lianhe Sowell International Group's ROE % compare to SDCH and DTSS?
According to the Software industry distribution chart, Lianhe Sowell International Group ranks #1058 out of 2682 companies for ROE %. This puts Lianhe Sowell International Group in the upper half of its industry. The industry median ROE % is 4.72. 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 Software company?
The median ROE % among Software companies is 4.72, based on 2,682 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 Lianhe Sowell International Group and its competitors. For the Software industry, the median ROE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lianhe Sowell International Group's current ROE % is -10.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lianhe Sowell International Group stock overvalued right now?
Lianhe Sowell International Group (LHSW) has a current ROE % of -10.17%. The current ROE % is -10.17%. Lianhe Sowell International Group's overall GF Score™ is 20/100 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 Lianhe Sowell International Group (LHSW), the current ROE % is -10.17% as of Sep. 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.

Lianhe Sowell International Group Business Description

Address No. 3388 Binhai Avenue, 15th Floor, Sannuo Smart Building, Binhai Community, Nanshan District, Shenzhen, CHN
Lianhe Sowell International Group Ltd is a holding company and operates its business through its subsidiary. It is a provider of machine vision products and solutions in China that invent and integrate technologies and solutions that address some of the critical manufacturing and distribution challenges, such as precision and accuracy required in manufacturing of electronic products. The company categorize machine vision products in four categories based on their application settings: Industrial Machine Vision, Artificial Intelligence (Face Recognition and AI Behavior Analysis), Intelligent Weak Current (Building Intelligence and Intelligent Transportation) and Electronic Customs Clearance.
20GF Score

Get the complete analysis for LHSW

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

$1.47
Price