Li Ning CoLNNGY +0.38%92 ROE % is 8.83% as of Dec. 2025, which is 41% below its 10-year median of 15.03. GuruFocus rates LNNGY with a GF Score™ of 92/100 and a GF Value™ of $66.53 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 824 Travel & Leisure companies, Li Ning Co ranks better than 67.11% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Li Ning Co's annualized net income for the quarter that ended in Dec. 2025 was $340 Mil. Li Ning Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was $3,853 Mil. Therefore, Li Ning Co's annualized ROE % for the quarter that ended in Dec. 2025 was 8.83%.
The historical rank and industry rank for Li Ning Co's ROE % or its related term are showing as below:
LNNGY'
s ROE % Range Over the Past 10 Years
Min: 10.98 Med: 15.03 Max: 27.18
Current: 10.98
During the past 13 years, Li Ning Co's highest ROE % was 27.18%. The lowest was 10.98%. And the median was 15.03%.
LNNGY's ROE % is ranked better than 67.11% of 824
companies
in the Travel & Leisure industry
Industry Median: 5.485
vs LNNGY: 10.98
Li Ning Co (OTCPK:LNNGY) 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.
Li Ning Co ROE % Related Terms
Li Ning Co ROE % Historical Data
* Premium members only.
The historical data trend for Li Ning Co'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.
For the Leisure subindustry, Li Ning Co'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.
Li Ning Co ROE % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Li Ning Co's ROE % distribution charts can be found below:
* The bar in red indicates where Li Ning Co'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.
Li Ning Co (LNNGY) has a ROE % of 8.83% 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 Li Ning Co and its competitors. This is 41% below median its historical median of 15.03. Over the past decade, Li Ning Co's ROE % has ranged from 10.98 to 27.18. According to the industry distribution chart, Li Ning Co ranks #271 out of 824 companies in the Travel & Leisure industry, placing it in the top 32.9%.
Is Li Ning Co's ROE % too high?
Li Ning Co's current ROE % of 8.83% is 41% below median its 10-year median of 15.03. Over the past 10 years, this metric has ranged from a low of 10.98 to a high of 27.18. The Travel & Leisure industry median ROE % is 5.49. Li Ning Co's value of 8.83% is 61% above this industry median. Based on the distribution chart, Li Ning Co ranks #271 out of 824 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Li Ning Co has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Li Ning Co's ROE % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Li Ning Co ranks #271 out of 824 companies for ROE %. This puts Li Ning Co in the upper half of its industry. The industry median ROE % is 5.49. Li Ning Co's value of 8.83% is 61% above this benchmark. Historically, Li Ning Co's own ROE % has ranged from 10.98 to 27.18 over the past decade. While the company's 10-year median is 15.03 vs. the industry median of 5.49, Li Ning Co 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 Travel & Leisure company?
The median ROE % among Travel & Leisure companies is 5.49, based on 824 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. Li Ning Co's current ROE % of 8.83% is 61% 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 Li Ning Co and its competitors. For the Travel & Leisure industry, the median ROE % is 5.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Li Ning Co's current ROE % is 8.83%, which is 41% below median its own 10-year median of 15.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Li Ning Co stock overvalued right now?
Based on GuruFocus' analysis, Li Ning Co (LNNGY) is currently considered Modestly Undervalued. The stock's GF Value™ is $66.53, compared to a current price of $47.94 — trading 27.9% below its estimated fair value. The current ROE % is 8.83%, which is 41% below median its 10-year median of 15.03 and 61% above the Travel & Leisure industry median of 5.49. Li Ning Co's overall GF Score™ is 92/100 with 3 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 Li Ning Co (LNNGY), the current ROE % is 8.83% 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 Li Ning Co (LNNGY) Overvalued in 2026?
Based on GuruFocus' analysis, Li Ning Co stock appears to be undervalued.
The current stock price of $47.94 is trading 27.9% below its estimated GF Value™ of $66.53.
GuruFocus considers Li Ning Co to be Modestly Undervalued.
Key valuation signals for LNNGY:
ROE %: 8.83% (41% below median its 10-year median of 15.03)
GF Value™: $66.53 vs. price of $47.94 (27.9% below fair value)
Industry Position: 61% above the Travel & Leisure median (#271 of 824)
No single metric tells the full story. See the LNNGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in 1989, Li Ning is one of the largest sportswear companies in China. Headquartered in Beijing, Li Ning mainly sells professional and leisure footwear and apparel under the Li Ning brand. Despite having a single-brand strategy, Li Ning launched multiple sub-brands (such as China Li Ning and Li Ning 1990) to appeal to different demographics. As of the end of 2024, the company had 7,585 stores in China, of which 1,297 were directly operated, and the rest franchised.
92GF Score
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