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.
Velcan Holdings ROE % Related Terms
Velcan Holdings ROE % Historical Data
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The historical data trend for Velcan Holdings'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 Utilities - Renewable subindustry, Velcan 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.
Velcan Holdings ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Velcan Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Velcan 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.
Velcan Holdings (LUX:VLCN) has a ROE % of 0.00% 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 Velcan Holdings and its competitors. According to the industry distribution chart, Velcan Holdings ranks #178 out of 433 companies in the Utilities - Independent Power Producers industry, placing it in the top 41.1%.
Is Velcan Holdings' ROE % too high?
Velcan Holdings' current ROE % is 0.00%. Based on the distribution chart, Velcan Holdings ranks #178 out of 433 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Velcan Holdings has a GF Score™ of 30/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Velcan Holdings' ROE % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Velcan Holdings ranks #178 out of 433 companies for ROE %. This puts Velcan Holdings in the upper half of its industry. The industry median ROE % is 3.80. 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. 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 Velcan Holdings 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. Velcan Holdings's current ROE % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Velcan Holdings stock overvalued right now?
Based on GuruFocus' analysis, Velcan Holdings (LUX:VLCN) is currently considered Fairly Valued. The stock's GF Value™ is €14.88, compared to a current price of €15.40 — trading 3.5% above its estimated fair value. The current ROE % is 0.00%. Velcan Holdings' overall GF Score™ is 30/100 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 Velcan Holdings (LUX:VLCN), the current ROE % is 0.00% 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 Velcan Holdings (LUX:VLCN) Overvalued in 2026?
Based on GuruFocus' analysis, Velcan Holdings stock appears to be overvalued.
The current stock price of €15.40 is trading 3.5% above its estimated GF Value™ of €14.88.
GuruFocus considers Velcan Holdings to be Fairly Valued.
Key valuation signals for LUX:VLCN:
ROE %: 0.00%
GF Value™: €14.88 vs. price of €15.40 (3.5% above fair value)
No single metric tells the full story. See the LUX:VLCN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Velcan Holdings manages a portfolio of financial assets, focusing on minority investments and listed securities. The assets of the group are deployed in listed and unlisted financial investments, minority private equity participations, commodities, bonds, cash and cash equivalents (bank current accounts and deposits), and a 15 MW hydro power plant in Brazil.
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