Aeorema CommunicationsLSE:AEO -1.57%58 ROE % is 24.94% as of Jun. 2025, which is 75% above its 10-year median of 14.26. GuruFocus rates LSE:AEO with a GF Score™ of 58/100 and a GF Value™ of £0.79 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 958 Media - Diversified companies, Aeorema Communications ranks better than 71.5% on this metric.
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 (Jun. 2025) net income data. The Revenue data used here is two times the semi-annual (Jun. 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.
* 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 Entertainment subindustry, Aeorema Communications'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.
Aeorema Communications ROE % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Aeorema Communications's ROE % distribution charts can be found below:
* The bar in red indicates where Aeorema Communications'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 (Jun. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Aeorema Communications (LSE:AEO) has a ROE % of 24.94% as of Jun. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Aeorema Communications and its competitors. This is 75% above median its historical median of 14.26. According to the industry distribution chart, Aeorema Communications ranks #273 out of 958 companies in the Media - Diversified industry, placing it in the top 28.5%.
Is Aeorema Communications' ROE % too high?
Aeorema Communications' current ROE % of 24.94% is 75% above median its 10-year median of 14.26. The Media - Diversified industry median ROE % is 2.47. Aeorema Communications' value of 24.94% is 909.7% above this industry median. Based on the distribution chart, Aeorema Communications ranks #273 out of 958 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Aeorema Communications has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aeorema Communications' ROE % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Aeorema Communications ranks #273 out of 958 companies for ROE %. This puts Aeorema Communications in the upper half of its industry. The industry median ROE % is 2.47. Aeorema Communications' value of 24.94% is 909.7% above this benchmark. While the company's 10-year median is 14.26 vs. the industry median of 2.47, Aeorema Communications 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 Media - Diversified company?
The median ROE % among Media - Diversified companies is 2.47, based on 958 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. Aeorema Communications's current ROE % of 24.94% is 909.7% 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 Aeorema Communications and its competitors. For the Media - Diversified industry, the median ROE % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aeorema Communications's current ROE % is 24.94%, which is 75% above median its own 10-year median of 14.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aeorema Communications stock overvalued right now?
Based on GuruFocus' analysis, Aeorema Communications (LSE:AEO) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.79, compared to a current price of £0.63 — trading 20.9% below its estimated fair value. The current ROE % is 24.94%, which is 75% above median its 10-year median of 14.26 and 909.7% above the Media - Diversified industry median of 2.47. Aeorema Communications' overall GF Score™ is 58/100 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 Aeorema Communications (LSE:AEO), the current ROE % is 24.94% as of Jun. 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 Aeorema Communications (LSE:AEO) Overvalued in 2026?
Based on GuruFocus' analysis, Aeorema Communications stock appears to be undervalued.
The current stock price of £0.63 is trading 20.9% below its estimated GF Value™ of £0.79.
GuruFocus considers Aeorema Communications to be Modestly Undervalued.
Key valuation signals for LSE:AEO:
ROE %: 24.94% (75% above median its 10-year median of 14.26)
GF Value™: £0.79 vs. price of £0.63 (20.9% below fair value)
Industry Position: 909.7% above the Media - Diversified median (#273 of 958)
No single metric tells the full story. See the LSE:AEO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aeorema Communications PLC is a live events company. The company specializes in devising and delivering corporate communication solutions. The company's customers are spread across the United Kingdom, the United States, and the rest of the world. The revenue generated by the company is derived from the provision of services like assisting clients with venue sourcing, event management, and incentive travel.
58GF Score
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