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.
* 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 Credit Services subindustry, Arman Financial Services'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.
Arman Financial Services ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Arman Financial Services's ROE % distribution charts can be found below:
* The bar in red indicates where Arman Financial Services'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.
Arman Financial Services (NSE:ARMANFIN) has a ROE % of 17.58% 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 Arman Financial Services and its competitors. This is 21% above median its historical median of 14.54. Over the past decade, Arman Financial Services' ROE % has ranged from 5.91 to 32.44. According to the industry distribution chart, Arman Financial Services ranks #270 out of 526 companies in the Credit Services industry, placing it in the top 51.3%.
Is Arman Financial Services' ROE % too high?
Arman Financial Services' current ROE % of 17.58% is 21% above median its 10-year median of 14.54. Over the past 10 years, this metric has ranged from a low of 5.91 to a high of 32.44. The Credit Services industry median ROE % is 6.70. Arman Financial Services' value of 17.58% is 162.6% above this industry median. Based on the distribution chart, Arman Financial Services ranks #270 out of 526 companies in the Credit Services industry, which is below the industry midpoint. Overall, Arman Financial Services has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arman Financial Services' ROE % compare to V and MA?
According to the Credit Services industry distribution chart, Arman Financial Services ranks #270 out of 526 companies for ROE %. This places Arman Financial Services in the lower half of its industry. The industry median ROE % is 6.70. Arman Financial Services' value of 17.58% is 162.6% above this benchmark. Historically, Arman Financial Services' own ROE % has ranged from 5.91 to 32.44 over the past decade. While the company's 10-year median is 14.54 vs. the industry median of 6.70, Arman Financial Services 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 Credit Services company?
The median ROE % among Credit Services companies is 6.70, based on 526 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. Arman Financial Services's current ROE % of 17.58% is 162.6% 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 Arman Financial Services and its competitors. For the Credit Services industry, the median ROE % is 6.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arman Financial Services's current ROE % is 17.58%, which is 21% above median its own 10-year median of 14.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arman Financial Services stock overvalued right now?
Based on GuruFocus' analysis, Arman Financial Services (NSE:ARMANFIN) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,682.03, compared to a current price of ₹1,743.90 — trading 3.7% above its estimated fair value. The current ROE % is 17.58%, which is 21% above median its 10-year median of 14.54 and 162.6% above the Credit Services industry median of 6.70. Arman Financial Services' overall GF Score™ is 87/100 with 7 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 Arman Financial Services (NSE:ARMANFIN), the current ROE % is 17.58% 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 Arman Financial Services (NSE:ARMANFIN) Overvalued in 2026?
Based on GuruFocus' analysis, Arman Financial Services stock appears to be overvalued.
The current stock price of ₹1,743.90 is trading 3.7% above its estimated GF Value™ of ₹1,682.03.
GuruFocus considers Arman Financial Services to be Fairly Valued.
Key valuation signals for NSE:ARMANFIN:
ROE %: 17.58% (21% above median its 10-year median of 14.54)
GF Value™: ₹1,682.03 vs. price of ₹1,743.90 (3.7% above fair value)
Industry Position: 162.6% above the Credit Services median (#270 of 526)
No single metric tells the full story. See the NSE:ARMANFIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arman Financial Services Ltd is a Non-Banking Financial Company (NBFC-AFC) registered with the RBI. It specialises in financing two-wheeler purchases to MSMEs and extends microfinance services through its subsidiary focusing on women entrepreneurs. The Company has a presence in several Indian states, strategically focusing on rural and semi-urban areas. It serves the underserved informal sector with small-scale retail loans. The company generates the majority of its revenue from Interest Income. All the operations of the company are in India.
87GF Score
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