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.
Salzer Electronics ROE % Related Terms
Salzer Electronics ROE % Historical Data
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The historical data trend for Salzer Electronics'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 Electrical Equipment & Parts subindustry, Salzer Electronics'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.
Salzer Electronics ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Salzer Electronics's ROE % distribution charts can be found below:
* The bar in red indicates where Salzer Electronics'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.
Salzer Electronics (NSE:SALZERELEC) has a ROE % of 6.93% 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 Salzer Electronics and its competitors. This is 21% below median its historical median of 8.82. Over the past decade, Salzer Electronics' ROE % has ranged from 6.39 to 10.41. According to the industry distribution chart, Salzer Electronics ranks #1048 out of 3003 companies in the Industrial Products industry, placing it in the top 34.9%.
Is Salzer Electronics' ROE % too high?
Salzer Electronics' current ROE % of 6.93% is 21% below median its 10-year median of 8.82. Over the past 10 years, this metric has ranged from a low of 6.39 to a high of 10.41. The Industrial Products industry median ROE % is 5.85. Salzer Electronics' value of 6.93% is 18.5% above this industry median. Based on the distribution chart, Salzer Electronics ranks #1048 out of 3003 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Salzer Electronics has a GF Score™ of 85/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Salzer Electronics' ROE % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Salzer Electronics ranks #1048 out of 3003 companies for ROE %. This puts Salzer Electronics in the upper half of its industry. The industry median ROE % is 5.85. Salzer Electronics' value of 6.93% is 18.5% above this benchmark. Historically, Salzer Electronics' own ROE % has ranged from 6.39 to 10.41 over the past decade. While the company's 10-year median is 8.82 vs. the industry median of 5.85, Salzer Electronics 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 3,003 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. Salzer Electronics's current ROE % of 6.93% is 18.5% 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 Salzer Electronics 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. Salzer Electronics's current ROE % is 6.93%, which is 21% below median its own 10-year median of 8.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Salzer Electronics stock overvalued right now?
Based on GuruFocus' analysis, Salzer Electronics (NSE:SALZERELEC) is currently considered Possible Value Trap. The stock's GF Value™ is ₹1,001.90, compared to a current price of ₹633.40 — trading 36.8% below its estimated fair value. The current ROE % is 6.93%, which is 21% below median its 10-year median of 8.82 and 18.5% above the Industrial Products industry median of 5.85. Salzer Electronics' overall GF Score™ is 85/100 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 Salzer Electronics (NSE:SALZERELEC), the current ROE % is 6.93% 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 Salzer Electronics (NSE:SALZERELEC) Overvalued in 2026?
Based on GuruFocus' analysis, Salzer Electronics stock appears to be undervalued.
The current stock price of ₹633.40 is trading 36.8% below its estimated GF Value™ of ₹1,001.90.
GuruFocus considers Salzer Electronics to be Possible Value Trap.
Key valuation signals for NSE:SALZERELEC:
ROE %: 6.93% (21% below median its 10-year median of 8.82)
GF Value™: ₹1,001.90 vs. price of ₹633.40 (36.8% below fair value)
Industry Position: 18.5% above the Industrial Products median (#1048 of 3003)
No single metric tells the full story. See the NSE:SALZERELEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Salzer Electronics Ltd is engaged in manufacturing a wide range of electrical installation products including devices for energy efficiency. The company's product includes Cable ducts, Energy saving Fan regulator, Electric vehicle charging stations, Brushless DC motors, Air conditioner Energy Saver, Disconnector switch, Ceiling Mount movement sensors, Touch cum remote switch, GE Earth Terminals, Bimetallic Overload Relays, Different Types of Sensors The company is engaged in the manufacture of Electrical insulation products which is considered to be the only reportable business segment. The company generates revenue from Domestic sales, Exports, and Scrap.
85GF Score
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