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Foroya Banki P/FLTS:0OF2 -2.45%52 ROE % is 11.51% as of Mar. 2026, which is 4% below its 10-year median of 11.93. GuruFocus rates LTS:0OF2 with a GF Score™ of 52/100 and a GF Value™ of kr158.29 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,523 Banks companies, Foroya Banki P/F ranks better than 79.51% 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 four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (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.
Foroya Banki P/F ROE % Related Terms
Foroya Banki P/F ROE % Historical Data
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The historical data trend for Foroya Banki P/F'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 Banks - Regional subindustry, Foroya Banki P/F'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.
Foroya Banki P/F ROE % vs Banks Industry
For the Banks industry and Financial Services sector, Foroya Banki P/F's ROE % distribution charts can be found below:
* The bar in red indicates where Foroya Banki P/F'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 four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Foroya Banki P/F (LTS:0OF2) has a ROE % of 11.51% 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 Foroya Banki P/F and its competitors. This is near median its historical median of 11.93. Over the past decade, Foroya Banki P/F's ROE % has ranged from 7.09 to 15.56. According to the industry distribution chart, Foroya Banki P/F ranks #312 out of 1523 companies in the Banks industry, placing it in the top 20.5%.
Is Foroya Banki P/F's ROE % too high?
Foroya Banki P/F's current ROE % of 11.51% is near median its 10-year median of 11.93. Over the past 10 years, this metric has ranged from a low of 7.09 to a high of 15.56. The Banks industry median ROE % is 10.35. Foroya Banki P/F's value of 11.51% is 11.2% above this industry median. Based on the distribution chart, Foroya Banki P/F ranks #312 out of 1523 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Foroya Banki P/F has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Foroya Banki P/F's ROE % compare to competitors?
According to the Banks industry distribution chart, Foroya Banki P/F ranks #312 out of 1523 companies for ROE %. This places Foroya Banki P/F in the top 21% of its industry — outperforming the majority of peers. The industry median ROE % is 10.35. Foroya Banki P/F's value of 11.51% is 11.2% above this benchmark. Historically, Foroya Banki P/F's own ROE % has ranged from 7.09 to 15.56 over the past decade. While the company's 10-year median is 11.93 vs. the industry median of 10.35, Foroya Banki P/F 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 Banks company?
The median ROE % among Banks companies is 10.35, based on 1,523 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. Foroya Banki P/F's current ROE % of 11.51% is 11.2% 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 Foroya Banki P/F and its competitors. For the Banks industry, the median ROE % is 10.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Foroya Banki P/F's current ROE % is 11.51%, which is near median its own 10-year median of 11.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Foroya Banki P/F stock overvalued right now?
Based on GuruFocus' analysis, Foroya Banki P/F (LTS:0OF2) is currently considered Significantly Overvalued. The stock's GF Value™ is kr158.29, compared to a current price of kr279.00 — trading 76.3% above its estimated fair value. The current ROE % is 11.51%, which is near median its 10-year median of 11.93 and 11.2% above the Banks industry median of 10.35. Foroya Banki P/F's overall GF Score™ is 52/100 with 6 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 Foroya Banki P/F (LTS:0OF2), the current ROE % is 11.51% 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 Foroya Banki P/F (LTS:0OF2) Overvalued in 2026?
Based on GuruFocus' analysis, Foroya Banki P/F stock appears to be overvalued.
The current stock price of kr279.00 is trading 76.3% above its estimated GF Value™ of kr158.29.
GuruFocus considers Foroya Banki P/F to be Significantly Overvalued.
Key valuation signals for LTS:0OF2:
ROE %: 11.51% (near median its 10-year median of 11.93)
GF Value™: kr158.29 vs. price of kr279.00 (76.3% above fair value)
Industry Position: 11.2% above the Banks median (#312 of 1523)
No single metric tells the full story. See the LTS:0OF2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Foroya Banki P/F is a banking company. It provides a range of banking products and financial services to private and corporate customers. Its business units include Banking and Non-life insurance. The Banking unit comprises of Personal Banking and Corporate Banking. Personal Banking comprises private customers in the Faroe Islands and Greenland. Corporate Banking comprises corporate customers mainly in the Faroe Islands and in Greenland. The corporate also comprises a few remaining corporate customers from Denmark. Non-life insurance comprises the insurance company P/F TRYGD based The Faroe Islands. TRYGD is responsible for the-life insurance products. It operates in the Faroe Islands, Denmark and Greenland of which key revenue is derived from the Faroe Islands.
52GF Score
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