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 one times the annual (Dec. 2025) net income data. The Revenue data used here is one times the 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.
Sociedad Minera Cerro VerdeA ROE % Related Terms
Sociedad Minera Cerro VerdeA ROE % Historical Data
* 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 Copper subindustry, Sociedad Minera Cerro VerdeA'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.
Sociedad Minera Cerro VerdeA ROE % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Sociedad Minera Cerro VerdeA's ROE % distribution charts can be found below:
* The bar in red indicates where Sociedad Minera Cerro VerdeA'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 one times the annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Sociedad Minera Cerro VerdeA (LIM:CVERDEC1) has a ROE % of 19.01% 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 Sociedad Minera Cerro VerdeA and its competitors. This is 13% above median its historical median of 16.75. Over the past decade, Sociedad Minera Cerro VerdeA's ROE % has ranged from 4.99 to 59.46. According to the industry distribution chart, Sociedad Minera Cerro VerdeA ranks #278 out of 2389 companies in the Metals & Mining industry, placing it in the top 11.6%.
Is Sociedad Minera Cerro VerdeA's ROE % too high?
Sociedad Minera Cerro VerdeA's current ROE % of 19.01% is 13% above median its 10-year median of 16.75. Over the past 10 years, this metric has ranged from a low of 4.99 to a high of 59.46. Based on the distribution chart, Sociedad Minera Cerro VerdeA ranks #278 out of 2389 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Sociedad Minera Cerro VerdeA has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sociedad Minera Cerro VerdeA's ROE % compare to SCCO and FCX?
According to the Metals & Mining industry distribution chart, Sociedad Minera Cerro VerdeA ranks #278 out of 2389 companies for ROE %. This places Sociedad Minera Cerro VerdeA in the top 12% of its industry — outperforming the majority of peers. Historically, Sociedad Minera Cerro VerdeA's own ROE % has ranged from 4.99 to 59.46 over the past decade. 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 Metals & Mining company?
A good ROE % depends on the Metals & Mining industry context. 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 Sociedad Minera Cerro VerdeA and its competitors. Sociedad Minera Cerro VerdeA's current ROE % is 19.01%, which is 13% above median its own 10-year median of 16.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sociedad Minera Cerro VerdeA stock overvalued right now?
Based on GuruFocus' analysis, Sociedad Minera Cerro VerdeA (LIM:CVERDEC1) is currently considered Significantly Overvalued. The stock's GF Value™ is $47.30, compared to a current price of $63.27 — trading 33.8% above its estimated fair value. The current ROE % is 19.01%, which is 13% above median its 10-year median of 16.75. Sociedad Minera Cerro VerdeA's overall GF Score™ is 79/100 with 4 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 Sociedad Minera Cerro VerdeA (LIM:CVERDEC1), the current ROE % is 19.01% 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 Sociedad Minera Cerro VerdeA (LIM:CVERDEC1) Overvalued in 2026?
Based on GuruFocus' analysis, Sociedad Minera Cerro VerdeA stock appears to be overvalued.
The current stock price of $63.27 is trading 33.8% above its estimated GF Value™ of $47.30.
GuruFocus considers Sociedad Minera Cerro VerdeA to be Significantly Overvalued.
Key valuation signals for LIM:CVERDEC1:
ROE %: 19.01% (13% above median its 10-year median of 16.75)
GF Value™: $47.30 vs. price of $63.27 (33.8% above fair value)
No single metric tells the full story. See the LIM:CVERDEC1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sociedad Minera Cerro Verde SAA is involved in the exploration, extraction, production and sale of copper from deposits located in the southwest of the Arequipa city.
79GF Score
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