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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.
East West Agro AB ROE % Related Terms
East West Agro AB ROE % Historical Data
* Premium members only.
The historical data trend for East West Agro AB'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 Farm & Heavy Construction Machinery subindustry, East West Agro AB'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.
East West Agro AB ROE % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, East West Agro AB's ROE % distribution charts can be found below:
* The bar in red indicates where East West Agro AB'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.
East West Agro AB (OVSE:EWA1L) has a ROE % of 23.80% 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 East West Agro AB and its competitors. This is 12% above median its historical median of 21.19.
Is East West Agro AB's ROE % too high?
East West Agro AB's current ROE % of 23.80% is 12% above median its 10-year median of 21.19. The Farm & Heavy Construction Machinery industry median ROE % is 7.31. East West Agro AB's value of 23.80% is 225.6% above this industry median. Overall, East West Agro AB has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does East West Agro AB's ROE % compare to CAT and DE?
East West Agro AB's ROE % of 23.80% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROE % is 7.31. East West Agro AB's value of 23.80% is 225.6% above this benchmark. While the company's 10-year median is 21.19 vs. the industry median of 7.31, East West Agro AB 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 Farm & Heavy Construction Machinery company?
The median ROE % among Farm & Heavy Construction Machinery companies is 7.31, based on 204 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. East West Agro AB's current ROE % of 23.80% is 225.6% 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 East West Agro AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROE % is 7.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. East West Agro AB's current ROE % is 23.80%, which is 12% above median its own 10-year median of 21.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is East West Agro AB stock overvalued right now?
East West Agro AB (OVSE:EWA1L) has a current ROE % of 23.80%. The stock's GF Value™ is €13.74, compared to a current price of €15.60 — trading 13.5% above its estimated fair value. The current ROE % is 23.80%, which is 12% above median its 10-year median of 21.19 and 225.6% above the Farm & Heavy Construction Machinery industry median of 7.31. East West Agro AB's overall GF Score™ is 15/100 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 East West Agro AB (OVSE:EWA1L), the current ROE % is 23.80% 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 East West Agro AB (OVSE:EWA1L) Overvalued in 2026?
Based on GuruFocus' analysis, East West Agro AB stock appears to be overvalued.
The current stock price of €15.60 is trading 13.5% above its estimated GF Value™ of €13.74.
Key valuation signals for OVSE:EWA1L:
ROE %: 23.80% (12% above median its 10-year median of 21.19)
GF Value™: €13.74 vs. price of €15.60 (13.5% above fair value)
Industry Position: 225.6% above the Farm & Heavy Construction Machinery median
No single metric tells the full story. See the OVSE:EWA1L stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
East West Agro AB is a wholesale and retail in agricultural machinery and spare parts for agricultural machinery. The company is engaged in the manufacturing of agricultural machinery and spare parts of agricultural machinery, such as tractors, harvesters, mowers, cultivators, compaction rollers, fertilizer equipment, and tractor accessories, among others.
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