Royal Arc ElectrodesNSE:ROYALARC 19 ROE % is 14.98% as of Mar. 2026, which is 5% below its 10-year median of 15.79. GuruFocus rates NSE:ROYALARC with a GF Score™ of 19/100. The stock has 4 warning signs investors should review. Among 3,001 Industrial Products companies, Royal Arc Electrodes ranks better than 57.31% on this metric.
The historical rank and industry rank for Royal Arc Electrodes's ROE % or its related term are showing as below:
NSE:ROYALARC'
s ROE % Range Over the Past 10 Years
Min: 7.49 Med: 15.79 Max: 37.43
Current: 7.49
During the past 5 years, Royal Arc Electrodes's highest ROE % was 37.43%. The lowest was 7.49%. And the median was 15.79%.
NSE:ROYALARC's ROE % is ranked better than 57.31% of 3001
companies
in the Industrial Products industry
Industry Median: 5.85
vs NSE:ROYALARC: 7.49
Royal Arc Electrodes (NSE:ROYALARC) 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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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 Electrical Equipment & Parts subindustry, Royal Arc Electrodes'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.
Royal Arc Electrodes ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Royal Arc Electrodes's ROE % distribution charts can be found below:
* The bar in red indicates where Royal Arc Electrodes'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Royal Arc Electrodes (NSE:ROYALARC) has a ROE % of 14.98% 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 Royal Arc Electrodes and its competitors. This is near median its historical median of 15.79. Over the past decade, Royal Arc Electrodes' ROE % has ranged from 7.49 to 37.43. According to the industry distribution chart, Royal Arc Electrodes ranks #1281 out of 3001 companies in the Industrial Products industry, placing it in the top 42.7%.
Is Royal Arc Electrodes' ROE % too high?
Royal Arc Electrodes' current ROE % of 14.98% is near median its 10-year median of 15.79. Over the past 10 years, this metric has ranged from a low of 7.49 to a high of 37.43. The Industrial Products industry median ROE % is 5.85. Royal Arc Electrodes' value of 14.98% is 156.1% above this industry median. Based on the distribution chart, Royal Arc Electrodes ranks #1281 out of 3001 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Royal Arc Electrodes has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Royal Arc Electrodes' ROE % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Royal Arc Electrodes ranks #1281 out of 3001 companies for ROE %. This puts Royal Arc Electrodes in the upper half of its industry. The industry median ROE % is 5.85. Royal Arc Electrodes' value of 14.98% is 156.1% above this benchmark. Historically, Royal Arc Electrodes' own ROE % has ranged from 7.49 to 37.43 over the past decade. While the company's 10-year median is 15.79 vs. the industry median of 5.85, Royal Arc Electrodes 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 an Industrial Products company?
The median ROE % among Industrial Products companies is 5.85, based on 3,001 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. Royal Arc Electrodes's current ROE % of 14.98% is 156.1% 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 Royal Arc Electrodes and its competitors. For the Industrial Products industry, the median ROE % is 5.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Arc Electrodes's current ROE % is 14.98%, which is near median its own 10-year median of 15.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Arc Electrodes stock overvalued right now?
Royal Arc Electrodes (NSE:ROYALARC) has a current ROE % of 14.98%. The current ROE % is 14.98%, which is near median its 10-year median of 15.79 and 156.1% above the Industrial Products industry median of 5.85. Royal Arc Electrodes' overall GF Score™ is 19/100 with 4 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 Royal Arc Electrodes (NSE:ROYALARC), the current ROE % is 14.98% 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.
Royal Arc Electrodes Ltd is engaged in the business of manufacturing welding consumables such as welding electrodes, flux cored wire, MIG/TIG wires, which finds its application in the welding of tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, etc. which are used in industries like railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom industries, thermal power stations, PEB sectors, etc. Further, the Company is also engaged in the business of trading ancillary/incidental products like wheels, electro slag, welding flux cored wire, electro slag strip cladding, saw flux, and TIG /MIG wires. It manufactures its products from copper coated wire, MS Strips, MS wire, SS strip, SS wire, nickel wire, ferro alloy powder, etc.
19GF Score
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