Somero EnterprisesLSE:SOM +4.74%67 ROE % is 19.04% as of Dec. 2025, which is 47% below its 10-year median of 36.00. GuruFocus rates LSE:SOM with a GF Score™ of 67/100 and a GF Value™ of £2.02 (Fairly Valued). The stock has 5 warning signs investors should review. Among 204 Farm & Heavy Construction Machinery companies, Somero Enterprises ranks better than 69.12% on this metric.
The historical rank and industry rank for Somero Enterprises's ROE % or its related term are showing as below:
LSE:SOM'
s ROE % Range Over the Past 10 Years
Min: 11.91 Med: 36 Max: 50.29
Current: 12.24
During the past 13 years, Somero Enterprises's highest ROE % was 50.29%. The lowest was 11.91%. And the median was 36.00%.
LSE:SOM's ROE % is ranked better than 69.12% of 204
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 7.315
vs LSE:SOM: 12.24
Somero Enterprises (LSE:SOM) 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.
Somero Enterprises ROE % Related Terms
Somero Enterprises ROE % Historical Data
* Premium members only.
The historical data trend for Somero Enterprises'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 Farm & Heavy Construction Machinery subindustry, Somero Enterprises'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.
Somero Enterprises ROE % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Somero Enterprises's ROE % distribution charts can be found below:
* The bar in red indicates where Somero Enterprises'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.
Somero Enterprises (LSE:SOM) has a ROE % of 19.04% 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 Somero Enterprises and its competitors. This is 47% below median its historical median of 36.00. Over the past decade, Somero Enterprises' ROE % has ranged from 11.91 to 50.29. According to the industry distribution chart, Somero Enterprises ranks #63 out of 204 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 30.9%.
Is Somero Enterprises' ROE % too high?
Somero Enterprises' current ROE % of 19.04% is 47% below median its 10-year median of 36.00. Over the past 10 years, this metric has ranged from a low of 11.91 to a high of 50.29. The Farm & Heavy Construction Machinery industry median ROE % is 7.32. Somero Enterprises' value of 19.04% is 160.3% above this industry median. Based on the distribution chart, Somero Enterprises ranks #63 out of 204 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Somero Enterprises has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Somero Enterprises' ROE % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Somero Enterprises ranks #63 out of 204 companies for ROE %. This puts Somero Enterprises in the upper half of its industry. The industry median ROE % is 7.32. Somero Enterprises' value of 19.04% is 160.3% above this benchmark. Historically, Somero Enterprises' own ROE % has ranged from 11.91 to 50.29 over the past decade. While the company's 10-year median is 36.00 vs. the industry median of 7.32, Somero Enterprises 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 Farm & Heavy Construction Machinery company?
The median ROE % among Farm & Heavy Construction Machinery companies is 7.32, based on 204 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. Somero Enterprises's current ROE % of 19.04% is 160.3% 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 Somero Enterprises and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROE % is 7.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Somero Enterprises's current ROE % is 19.04%, which is 47% below median its own 10-year median of 36.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Somero Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Somero Enterprises (LSE:SOM) is currently considered Fairly Valued. The stock's GF Value™ is £2.02, compared to a current price of £1.99 — trading 1.5% below its estimated fair value. The current ROE % is 19.04%, which is 47% below median its 10-year median of 36.00 and 160.3% above the Farm & Heavy Construction Machinery industry median of 7.32. Somero Enterprises' overall GF Score™ is 67/100 with 5 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 Somero Enterprises (LSE:SOM), the current ROE % is 19.04% 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 Somero Enterprises (LSE:SOM) Overvalued in 2026?
Based on GuruFocus' analysis, Somero Enterprises stock appears to be undervalued.
The current stock price of £1.99 is trading 1.5% below its estimated GF Value™ of £2.02.
GuruFocus considers Somero Enterprises to be Fairly Valued.
Key valuation signals for LSE:SOM:
ROE %: 19.04% (47% below median its 10-year median of 36.00)
GF Value™: £2.02 vs. price of £1.99 (1.5% below fair value)
Industry Position: 160.3% above the Farm & Heavy Construction Machinery median (#63 of 204)
No single metric tells the full story. See the LSE:SOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Somero Enterprises Inc designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment, related parts and accessories, and training services world'wide. Its products include Ride-on Laser Screeds, Lightweight Screeds, Boom Laser Screeds, Compact Boom Screeds, Stationary Laser Screeds, Software Packages, Factory Certified Remanufactured Equipment, Materials Placement. The Company operates as a single reportable segment. The group has presence in North America, Europe, Australia, ROW (includes Latin America, India, China, Middle East, Korea, and Southeast Asia). The company generates majority of revenue from North America.
67GF Score
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