Stelrad GroupLSE:SRAD -0.65%68 ROE % is 16.39% as of Dec. 2025, which is 28% below its 10-year median of 22.62. GuruFocus rates LSE:SRAD with a GF Score™ of 68/100 and a GF Value™ of £1.29 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,738 Construction companies, Stelrad Group ranks worse than 70.2% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Stelrad Group's annualized net income for the quarter that ended in Dec. 2025 was £8.6 Mil. Stelrad Group's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was £52.4 Mil. Therefore, Stelrad Group's annualized ROE % for the quarter that ended in Dec. 2025 was 16.39%.
The historical rank and industry rank for Stelrad Group's ROE % or its related term are showing as below:
LSE:SRAD'
s ROE % Range Over the Past 10 Years
Min: -1.37 Med: 22.62 Max: 95.72
Current: 1.56
During the past 8 years, Stelrad Group's highest ROE % was 95.72%. The lowest was -1.37%. And the median was 22.62%.
LSE:SRAD's ROE % is ranked worse than 70.2% of 1738
companies
in the Construction industry
Industry Median: 6.715
vs LSE:SRAD: 1.56
Stelrad Group (LSE:SRAD) 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.
Stelrad Group ROE % Related Terms
Stelrad Group ROE % Historical Data
* Premium members only.
The historical data trend for Stelrad Group'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 Building Products & Equipment subindustry, Stelrad Group'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.
Stelrad Group ROE % vs Construction Industry
For the Construction industry and Industrials sector, Stelrad Group's ROE % distribution charts can be found below:
* The bar in red indicates where Stelrad Group'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.
Stelrad Group (LSE:SRAD) has a ROE % of 16.39% 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 Stelrad Group and its competitors. This is 28% below median its historical median of 22.62. According to the industry distribution chart, Stelrad Group ranks #1220 out of 1738 companies in the Construction industry, placing it in the top 70.2%.
Is Stelrad Group's ROE % too high?
Stelrad Group's current ROE % of 16.39% is 28% below median its 10-year median of 22.62. The Construction industry median ROE % is 6.72. Stelrad Group's value of 16.39% is 144.1% above this industry median. Based on the distribution chart, Stelrad Group ranks #1220 out of 1738 companies in the Construction industry, which is below the industry midpoint. Overall, Stelrad Group has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Stelrad Group's ROE % compare to TT and JCI?
According to the Construction industry distribution chart, Stelrad Group ranks #1220 out of 1738 companies for ROE %. This places Stelrad Group in the lower half of its industry. The industry median ROE % is 6.72. Stelrad Group's value of 16.39% is 144.1% above this benchmark. While the company's 10-year median is 22.62 vs. the industry median of 6.72, Stelrad Group 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 Construction company?
The median ROE % among Construction companies is 6.72, based on 1,738 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. Stelrad Group's current ROE % of 16.39% is 144.1% 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 Stelrad Group and its competitors. For the Construction industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stelrad Group's current ROE % is 16.39%, which is 28% below median its own 10-year median of 22.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stelrad Group stock overvalued right now?
Based on GuruFocus' analysis, Stelrad Group (LSE:SRAD) is currently considered Modestly Overvalued. The stock's GF Value™ is £1.29, compared to a current price of £1.52 — trading 17.8% above its estimated fair value. The current ROE % is 16.39%, which is 28% below median its 10-year median of 22.62 and 144.1% above the Construction industry median of 6.72. Stelrad Group's overall GF Score™ is 68/100 with 4 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 Stelrad Group (LSE:SRAD), the current ROE % is 16.39% 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 Stelrad Group (LSE:SRAD) Overvalued in 2026?
Based on GuruFocus' analysis, Stelrad Group stock appears to be overvalued.
The current stock price of £1.52 is trading 17.8% above its estimated GF Value™ of £1.29.
GuruFocus considers Stelrad Group to be Modestly Overvalued.
Key valuation signals for LSE:SRAD:
ROE %: 16.39% (28% below median its 10-year median of 22.62)
GF Value™: £1.29 vs. price of £1.52 (17.8% above fair value)
Industry Position: 144.1% above the Construction median (#1220 of 1738)
No single metric tells the full story. See the LSE:SRAD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Stelrad Group PLC sells standard and premium steel panel radiators, low surface temperature radiators, towel warmers, decorative steel tubular radiators, and other steel column radiators. It has manufacturing and distribution facilities in the United Kingdom, the Netherlands, and Turkey, additional distribution facilities in Poland and Denmark, and sales personnel in seven other countries, including China. Geographically, the company has three segments: UK & Ireland, Europe, and Turkey & International. The Group operates five established brands (Stelrad, Henrad, Termo Teknik, Hudevad, and DL Radiators) that enable its products to be tailored to specific channels, maximizing market access and minimizing potential conflict.
68GF Score
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