Michelmersh Brick HoldingsLSE:MBH 56 ROE % is 2.92% as of Dec. 2025, which is 59% below its 10-year median of 7.18. GuruFocus rates LSE:MBH with a GF Score™ of 56/100 and a GF Value™ of £0.97 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 405 Building Materials companies, Michelmersh Brick Holdings ranks worse than 53.33% 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 Building Materials subindustry, Michelmersh Brick Holdings'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.
Michelmersh Brick Holdings ROE % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Michelmersh Brick Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Michelmersh Brick Holdings'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.
Michelmersh Brick Holdings (LSE:MBH) has a ROE % of 2.92% 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 Michelmersh Brick Holdings and its competitors. This is 59% below median its historical median of 7.18. Over the past decade, Michelmersh Brick Holdings' ROE % has ranged from 3.86 to 12.30. According to the industry distribution chart, Michelmersh Brick Holdings ranks #216 out of 405 companies in the Building Materials industry, placing it in the top 53.3%.
Is Michelmersh Brick Holdings' ROE % too high?
Michelmersh Brick Holdings' current ROE % of 2.92% is 59% below median its 10-year median of 7.18. Over the past 10 years, this metric has ranged from a low of 3.86 to a high of 12.30. The Building Materials industry median ROE % is 4.32. Michelmersh Brick Holdings' value of 2.92% is 32.4% below this industry median. Based on the distribution chart, Michelmersh Brick Holdings ranks #216 out of 405 companies in the Building Materials industry, which is below the industry midpoint. Overall, Michelmersh Brick Holdings has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Michelmersh Brick Holdings' ROE % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Michelmersh Brick Holdings ranks #216 out of 405 companies for ROE %. This places Michelmersh Brick Holdings in the lower half of its industry. The industry median ROE % is 4.32. Michelmersh Brick Holdings' value of 2.92% is 32.4% below this benchmark. Historically, Michelmersh Brick Holdings' own ROE % has ranged from 3.86 to 12.30 over the past decade. While the company's 10-year median is 7.18 vs. the industry median of 4.32, Michelmersh Brick Holdings 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 a Building Materials company?
The median ROE % among Building Materials companies is 4.32, based on 405 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. Michelmersh Brick Holdings's current ROE % of 2.92% is 32.4% 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 Michelmersh Brick Holdings and its competitors. For the Building Materials industry, the median ROE % is 4.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Michelmersh Brick Holdings's current ROE % is 2.92%, which is 59% below median its own 10-year median of 7.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Michelmersh Brick Holdings stock overvalued right now?
Based on GuruFocus' analysis, Michelmersh Brick Holdings (LSE:MBH) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.97, compared to a current price of £0.78 — trading 19.6% below its estimated fair value. The current ROE % is 2.92%, which is 59% below median its 10-year median of 7.18 and 32.4% below the Building Materials industry median of 4.32. Michelmersh Brick Holdings' overall GF Score™ is 56/100 with 7 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 Michelmersh Brick Holdings (LSE:MBH), the current ROE % is 2.92% 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 Michelmersh Brick Holdings (LSE:MBH) Overvalued in 2026?
Based on GuruFocus' analysis, Michelmersh Brick Holdings stock appears to be undervalued.
The current stock price of £0.78 is trading 19.6% below its estimated GF Value™ of £0.97.
GuruFocus considers Michelmersh Brick Holdings to be Modestly Undervalued.
Key valuation signals for LSE:MBH:
ROE %: 2.92% (59% below median its 10-year median of 7.18)
GF Value™: £0.97 vs. price of £0.78 (19.6% below fair value)
Industry Position: 32.4% below the Building Materials median (#216 of 405)
No single metric tells the full story. See the LSE:MBH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Michelmersh Brick Holdings PLC is a business with brands, namely, Blockleys, Carlton, FabSpeed, Freshfield Lane, Michelmersh, Floren and Hathern Terra Cotta. These divisions operate within a fully integrated business combining the manufacture of clay bricks and pavers. The Group also includes a landfill operator, New Acres Ltd, and seeks to develop future landfill and development opportunities on ancillary land assets. It currently owns the UK's premium manufacturing brick brands and is a specification brick and clay paving manufacturer. Geographically, the majority is derived from the United Kingdom.
56GF Score
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