ReeceREECF 89 ROE % is 7.56% as of Dec. 2025, which is 31% below its 10-year median of 11.03. GuruFocus rates REECF with a GF Score™ of 89/100 and a GF Value™ of $12.19 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 156 Industrial Distribution companies, Reece ranks worse than 51.92% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Reece's annualized net income for the quarter that ended in Dec. 2025 was $192 Mil. Reece's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was $2,534 Mil. Therefore, Reece's annualized ROE % for the quarter that ended in Dec. 2025 was 7.56%.
The historical rank and industry rank for Reece's ROE % or its related term are showing as below:
REECF'
s ROE % Range Over the Past 10 Years
Min: 7.12 Med: 11.03 Max: 19.54
Current: 7.12
During the past 13 years, Reece's highest ROE % was 19.54%. The lowest was 7.12%. And the median was 11.03%.
REECF's ROE % is ranked worse than 51.92% of 156
companies
in the Industrial Distribution industry
Industry Median: 7.235
vs REECF: 7.12
Reece (OTCPK:REECF) 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 (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.
Reece ROE % Related Terms
Reece ROE % Historical Data
* Premium members only.
The historical data trend for Reece'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 Industrial Distribution subindustry, Reece'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.
Reece ROE % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Reece's ROE % distribution charts can be found below:
* The bar in red indicates where Reece'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.
Reece (REECF) has a ROE % of 7.56% 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 Reece and its competitors. This is 31% below median its historical median of 11.03. Over the past decade, Reece's ROE % has ranged from 7.12 to 19.54. According to the industry distribution chart, Reece ranks #81 out of 156 companies in the Industrial Distribution industry, placing it in the top 51.9%.
Is Reece's ROE % too high?
Reece's current ROE % of 7.56% is 31% below median its 10-year median of 11.03. Over the past 10 years, this metric has ranged from a low of 7.12 to a high of 19.54. The Industrial Distribution industry median ROE % is 7.24. Reece's value of 7.56% is 4.5% above this industry median. Based on the distribution chart, Reece ranks #81 out of 156 companies in the Industrial Distribution industry, which is below the industry midpoint. Overall, Reece has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reece's ROE % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Reece ranks #81 out of 156 companies for ROE %. This places Reece in the lower half of its industry. The industry median ROE % is 7.24. Reece's value of 7.56% is 4.5% above this benchmark. Historically, Reece's own ROE % has ranged from 7.12 to 19.54 over the past decade. While the company's 10-year median is 11.03 vs. the industry median of 7.24, Reece 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 Distribution company?
The median ROE % among Industrial Distribution companies is 7.24, based on 156 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. Reece's current ROE % of 7.56% is 4.5% 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 Reece and its competitors. For the Industrial Distribution industry, the median ROE % is 7.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reece's current ROE % is 7.56%, which is 31% below median its own 10-year median of 11.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reece stock overvalued right now?
Based on GuruFocus' analysis, Reece (REECF) is currently considered Modestly Undervalued. The stock's GF Value™ is $12.19, compared to a current price of $9.80 — trading 19.6% below its estimated fair value. The current ROE % is 7.56%, which is 31% below median its 10-year median of 11.03 and 4.5% above the Industrial Distribution industry median of 7.24. Reece's overall GF Score™ is 89/100 with 8 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 Reece (REECF), the current ROE % is 7.56% 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 Reece (REECF) Overvalued in 2026?
Based on GuruFocus' analysis, Reece stock appears to be undervalued.
The current stock price of $9.80 is trading 19.6% below its estimated GF Value™ of $12.19.
GuruFocus considers Reece to be Modestly Undervalued.
Key valuation signals for REECF:
ROE %: 7.56% (31% below median its 10-year median of 11.03)
GF Value™: $12.19 vs. price of $9.80 (19.6% below fair value)
Industry Position: 4.5% above the Industrial Distribution median (#81 of 156)
No single metric tells the full story. See the REECF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reece is an Australian distributor of plumbing supplies and bathroom products, with businesses in Australia, New Zealand, and the United States. Reece Australia holds Australia's largest range of individual plumbing stock-keeping units, supporting plumbing needs for general plumbing, bathrooms, kitchens, heating and air conditioning, irrigation, refrigeration, pools, commercial and government projects, and fire services.In the Australia and New Zealand markets, Reece's trade, customers are mostly small to medium plumbing businesses working in the areas of residential repairs, renovations, or new home builds.The US business principally serves plumbers working on commercial and residential construction projects and has a network of almost 300 stores in the southern Sunbelt states.
89GF Score
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