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Franchetti SpAMIL:FCH +0.98%81 ROE % is 5.18% as of Dec. 2025, which is 83% below its 10-year median of 30.75. GuruFocus rates MIL:FCH with a GF Score™ of 81/100 and a GF Value™ of €5.77 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,747 Construction companies, Franchetti SpA ranks worse than 59.02% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Franchetti SpA's annualized net income for the quarter that ended in Dec. 2025 was €1.03 Mil. Franchetti SpA's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was €19.89 Mil. Therefore, Franchetti SpA's annualized ROE % for the quarter that ended in Dec. 2025 was 5.18%.
The historical rank and industry rank for Franchetti SpA's ROE % or its related term are showing as below:
MIL:FCH'
s ROE % Range Over the Past 10 Years
Min: 4.64 Med: 30.75 Max: 93.17
Current: 4.7
During the past 6 years, Franchetti SpA's highest ROE % was 93.17%. The lowest was 4.64%. And the median was 30.75%.
MIL:FCH's ROE % is ranked worse than 59.02% of 1747
companies
in the Construction industry
Industry Median: 6.74
vs MIL:FCH: 4.70
Franchetti SpA (MIL:FCH) 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.
Franchetti SpA ROE % Related Terms
Franchetti SpA ROE % Historical Data
* Premium members only.
The historical data trend for Franchetti SpA'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 Engineering & Construction subindustry, Franchetti SpA'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.
Franchetti SpA ROE % vs Construction Industry
For the Construction industry and Industrials sector, Franchetti SpA's ROE % distribution charts can be found below:
* The bar in red indicates where Franchetti SpA'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.
Franchetti SpA (MIL:FCH) has a ROE % of 5.18% 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 Franchetti SpA and its competitors. This is 83% below median its historical median of 30.75. Over the past decade, Franchetti SpA's ROE % has ranged from 4.64 to 93.17. According to the industry distribution chart, Franchetti SpA ranks #1031 out of 1747 companies in the Construction industry, placing it in the top 59%.
Is Franchetti SpA's ROE % too high?
Franchetti SpA's current ROE % of 5.18% is 83% below median its 10-year median of 30.75. Over the past 10 years, this metric has ranged from a low of 4.64 to a high of 93.17. The Construction industry median ROE % is 6.74. Franchetti SpA's value of 5.18% is 23.1% below this industry median. Based on the distribution chart, Franchetti SpA ranks #1031 out of 1747 companies in the Construction industry, which is below the industry midpoint. Overall, Franchetti SpA has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Franchetti SpA's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Franchetti SpA ranks #1031 out of 1747 companies for ROE %. This places Franchetti SpA in the lower half of its industry. The industry median ROE % is 6.74. Franchetti SpA's value of 5.18% is 23.1% below this benchmark. Historically, Franchetti SpA's own ROE % has ranged from 4.64 to 93.17 over the past decade. While the company's 10-year median is 30.75 vs. the industry median of 6.74, Franchetti SpA 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 Construction company?
The median ROE % among Construction companies is 6.74, based on 1,747 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. Franchetti SpA's current ROE % of 5.18% is 23.1% 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 Franchetti SpA and its competitors. For the Construction industry, the median ROE % is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Franchetti SpA's current ROE % is 5.18%, which is 83% below median its own 10-year median of 30.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Franchetti SpA stock overvalued right now?
Based on GuruFocus' analysis, Franchetti SpA (MIL:FCH) is currently considered Modestly Undervalued. The stock's GF Value™ is €5.77, compared to a current price of €5.15 — trading 10.7% below its estimated fair value. The current ROE % is 5.18%, which is 83% below median its 10-year median of 30.75 and 23.1% below the Construction industry median of 6.74. Franchetti SpA's overall GF Score™ is 81/100 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 Franchetti SpA (MIL:FCH), the current ROE % is 5.18% 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 Franchetti SpA (MIL:FCH) Overvalued in 2026?
Based on GuruFocus' analysis, Franchetti SpA stock appears to be undervalued.
The current stock price of €5.15 is trading 10.7% below its estimated GF Value™ of €5.77.
GuruFocus considers Franchetti SpA to be Modestly Undervalued.
Key valuation signals for MIL:FCH:
ROE %: 5.18% (83% below median its 10-year median of 30.75)
GF Value™: €5.77 vs. price of €5.15 (10.7% below fair value)
Industry Position: 23.1% below the Construction median (#1031 of 1747)
No single metric tells the full story. See the MIL:FCH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Franchetti SpA is a civil and environmental engineering company specializes in the inspection, analysis and maintenance of high-value elements, such as bridges and complex transport networks.
81GF Score
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