Greencoat RenewablesLSE:GRP -2.21%36 ROE % is 2.81% as of Dec. 2025, which is 41% below its 10-year median of 4.74. GuruFocus rates LSE:GRP with a GF Score™ of 36/100 and a GF Value™ of €0.98 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 433 Utilities - Independent Power Producers companies, Greencoat Renewables ranks worse than 75.52% 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 (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.
* 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 Utilities - Renewable subindustry, Greencoat Renewables'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.
Greencoat Renewables ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Greencoat Renewables's ROE % distribution charts can be found below:
* The bar in red indicates where Greencoat Renewables'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.
Greencoat Renewables (LSE:GRP) has a ROE % of 2.81% 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 Greencoat Renewables and its competitors. This is 41% below median its historical median of 4.74. According to the industry distribution chart, Greencoat Renewables ranks #327 out of 433 companies in the Utilities - Independent Power Producers industry, placing it in the top 75.5%.
Is Greencoat Renewables' ROE % too high?
Greencoat Renewables' current ROE % of 2.81% is 41% below median its 10-year median of 4.74. The Utilities - Independent Power Producers industry median ROE % is 3.80. Greencoat Renewables' value of 2.81% is 26.1% below this industry median. Based on the distribution chart, Greencoat Renewables ranks #327 out of 433 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, Greencoat Renewables has a GF Score™ of 36/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Greencoat Renewables' ROE % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Greencoat Renewables ranks #327 out of 433 companies for ROE %. This places Greencoat Renewables in the lower half of its industry. The industry median ROE % is 3.80. Greencoat Renewables' value of 2.81% is 26.1% below this benchmark. While the company's 10-year median is 4.74 vs. the industry median of 3.80, Greencoat Renewables 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 Utilities - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.80, based on 433 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. Greencoat Renewables's current ROE % of 2.81% is 26.1% 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 Greencoat Renewables and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Greencoat Renewables's current ROE % is 2.81%, which is 41% below median its own 10-year median of 4.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Greencoat Renewables stock overvalued right now?
Based on GuruFocus' analysis, Greencoat Renewables (LSE:GRP) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.98, compared to a current price of €0.71 — trading 27.8% below its estimated fair value. The current ROE % is 2.81%, which is 41% below median its 10-year median of 4.74 and 26.1% below the Utilities - Independent Power Producers industry median of 3.80. Greencoat Renewables' overall GF Score™ is 36/100 with 1 warning sign 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 Greencoat Renewables (LSE:GRP), the current ROE % is 2.81% 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 Greencoat Renewables (LSE:GRP) Overvalued in 2026?
Based on GuruFocus' analysis, Greencoat Renewables stock appears to be undervalued.
The current stock price of €0.71 is trading 27.8% below its estimated GF Value™ of €0.98.
GuruFocus considers Greencoat Renewables to be Modestly Undervalued.
Key valuation signals for LSE:GRP:
ROE %: 2.81% (41% below median its 10-year median of 4.74)
GF Value™: €0.98 vs. price of €0.71 (27.8% below fair value)
Industry Position: 26.1% below the Utilities - Independent Power Producers median (#327 of 433)
No single metric tells the full story. See the LSE:GRP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Greencoat Renewables PLC is a sector-focused listed renewable infrastructure company, investing in renewable electricity generation assets. The Group is engaged in a single segment of business, being investment in renewable infrastructure to generate investment returns while preserving capital. The company presents the business as a single segment comprising a homogeneous portfolio. It geographically operates in the Republic of Ireland, Germany, France, Sweden, and Spain.
36GF Score
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