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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (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.
Newgen Software Technologies ROE % Related Terms
Newgen Software Technologies ROE % Historical Data
* 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 Software - Infrastructure subindustry, Newgen Software Technologies'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.
Newgen Software Technologies ROE % vs Software Industry
For the Software industry and Technology sector, Newgen Software Technologies's ROE % distribution charts can be found below:
* The bar in red indicates where Newgen Software Technologies'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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Newgen Software Technologies (NSE:NEWGEN) has a ROE % of 15.78% 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 Newgen Software Technologies and its competitors. This is 29% below median its historical median of 22.24. Over the past decade, Newgen Software Technologies' ROE % has ranged from 13.35 to 23.01. According to the industry distribution chart, Newgen Software Technologies ranks #463 out of 2679 companies in the Software industry, placing it in the top 17.3%.
Is Newgen Software Technologies' ROE % too high?
Newgen Software Technologies' current ROE % of 15.78% is 29% below median its 10-year median of 22.24. Over the past 10 years, this metric has ranged from a low of 13.35 to a high of 23.01. The Software industry median ROE % is 4.68. Newgen Software Technologies' value of 15.78% is 237.2% above this industry median. Based on the distribution chart, Newgen Software Technologies ranks #463 out of 2679 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Newgen Software Technologies has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Newgen Software Technologies' ROE % compare to MSFT and ORCL?
According to the Software industry distribution chart, Newgen Software Technologies ranks #463 out of 2679 companies for ROE %. This places Newgen Software Technologies in the top 17% of its industry — outperforming the majority of peers. The industry median ROE % is 4.68. Newgen Software Technologies' value of 15.78% is 237.2% above this benchmark. Historically, Newgen Software Technologies' own ROE % has ranged from 13.35 to 23.01 over the past decade. While the company's 10-year median is 22.24 vs. the industry median of 4.68, Newgen Software Technologies 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 Software company?
The median ROE % among Software companies is 4.68, based on 2,679 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. Newgen Software Technologies's current ROE % of 15.78% is 237.2% 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 Newgen Software Technologies and its competitors. For the Software industry, the median ROE % is 4.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Newgen Software Technologies's current ROE % is 15.78%, which is 29% below median its own 10-year median of 22.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newgen Software Technologies stock overvalued right now?
Based on GuruFocus' analysis, Newgen Software Technologies (NSE:NEWGEN) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,055.36, compared to a current price of ₹473.10 — trading 55.2% below its estimated fair value. The current ROE % is 15.78%, which is 29% below median its 10-year median of 22.24 and 237.2% above the Software industry median of 4.68. Newgen Software Technologies' overall GF Score™ is 86/100. 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 Newgen Software Technologies (NSE:NEWGEN), the current ROE % is 15.78% 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 Newgen Software Technologies (NSE:NEWGEN) Overvalued in 2026?
Based on GuruFocus' analysis, Newgen Software Technologies stock appears to be undervalued.
The current stock price of ₹473.10 is trading 55.2% below its estimated GF Value™ of ₹1,055.36.
GuruFocus considers Newgen Software Technologies to be Significantly Undervalued.
Key valuation signals for NSE:NEWGEN:
ROE %: 15.78% (29% below median its 10-year median of 22.24)
GF Value™: ₹1,055.36 vs. price of ₹473.10 (55.2% below fair value)
Industry Position: 237.2% above the Software median (#463 of 2679)
No single metric tells the full story. See the NSE:NEWGEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Newgen Software Technologies Ltd is a software company. It is engaged in software product development including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow automation to Document management to imaging. The entity's geographical segments are India; USA, and Africa (EMEA); Asia Pacific (APAC); and the United States of America (USA). It generates key revenue from India and the EMEA region. The company's NewgenONE Platform is a unified low-code platform for end-to-end automation at scale for enterprises. The platform offerings include Contextual Content Services (ECM), Intelligent Process Automation (BPM), Omnichannel Customer Engagement (CCM), and Low Code Application Development.
86GF Score
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