Caledonia InvestmentsLSE:CLDN +0.96%61 ROE % is 0.55% as of Mar. 2026, which is 91% below its 10-year median of 6.10. GuruFocus rates LSE:CLDN with a GF Score™ of 61/100 and a GF Value™ of £3.27 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,609 Asset Management companies, Caledonia Investments ranks worse than 57.12% 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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
* 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 Asset Management subindustry, Caledonia Investments'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.
Caledonia Investments ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Caledonia Investments's ROE % distribution charts can be found below:
* The bar in red indicates where Caledonia Investments'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Caledonia Investments (LSE:CLDN) has a ROE % of 0.55% 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 Caledonia Investments and its competitors. This is 91% below median its historical median of 6.10. According to the industry distribution chart, Caledonia Investments ranks #919 out of 1609 companies in the Asset Management industry, placing it in the top 57.1%.
Is Caledonia Investments' ROE % too high?
Caledonia Investments' current ROE % of 0.55% is 91% below median its 10-year median of 6.10. The Asset Management industry median ROE % is 6.52. Caledonia Investments' value of 0.55% is 91.6% below this industry median. Based on the distribution chart, Caledonia Investments ranks #919 out of 1609 companies in the Asset Management industry, which is below the industry midpoint. Overall, Caledonia Investments has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Caledonia Investments' ROE % compare to BLK and BX?
According to the Asset Management industry distribution chart, Caledonia Investments ranks #919 out of 1609 companies for ROE %. This places Caledonia Investments in the lower half of its industry. The industry median ROE % is 6.52. Caledonia Investments' value of 0.55% is 91.6% below this benchmark. While the company's 10-year median is 6.10 vs. the industry median of 6.52, Caledonia Investments has consistently been below 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 an Asset Management company?
The median ROE % among Asset Management companies is 6.52, based on 1,609 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. Caledonia Investments's current ROE % of 0.55% is 91.6% below 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 Caledonia Investments and its competitors. For the Asset Management industry, the median ROE % is 6.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caledonia Investments's current ROE % is 0.55%, which is 91% below median its own 10-year median of 6.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Caledonia Investments stock overvalued right now?
Based on GuruFocus' analysis, Caledonia Investments (LSE:CLDN) is currently considered Modestly Overvalued. The stock's GF Value™ is £3.27, compared to a current price of £3.69 — trading 12.7% above its estimated fair value. The current ROE % is 0.55%, which is 91% below median its 10-year median of 6.10 and 91.6% below the Asset Management industry median of 6.52. Caledonia Investments' overall GF Score™ is 61/100 with 2 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 Caledonia Investments (LSE:CLDN), the current ROE % is 0.55% 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 Caledonia Investments (LSE:CLDN) Overvalued in 2026?
Based on GuruFocus' analysis, Caledonia Investments stock appears to be overvalued.
The current stock price of £3.69 is trading 12.7% above its estimated GF Value™ of £3.27.
GuruFocus considers Caledonia Investments to be Modestly Overvalued.
Key valuation signals for LSE:CLDN:
ROE %: 0.55% (91% below median its 10-year median of 6.10)
GF Value™: £3.27 vs. price of £3.69 (12.7% above fair value)
Industry Position: 91.6% below the Asset Management median (#919 of 1609)
No single metric tells the full story. See the LSE:CLDN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Caledonia Investments PLC is an investment trust company. It invest in both listed and private markets across three pools: Public Companies, Private Capital and Funds. It has presence in United States, United Kingdom, and others. The company generates majority of Income from United States.
61GF Score
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