Zhen Yu Hardware Co (ROCO:2947) ROE %: 5.89% (As of Dec. 2025) — 67% Below Median

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ROCO:2947 Zhen Yu Hardware Co Ltd ROCO:2947
78 GF Score
Price NT$69.40
GF Value NT$86.65
Valuation Modestly Undervalued
! 7 Warning Signs
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What is Zhen Yu Hardware Co ROE %?

Zhen Yu Hardware Co ROCO:2947 +1.31% 78 ROE % is 5.89% as of Dec. 2025, which is 67% below its 10-year median of 17.62. GuruFocus rates ROCO:2947 with a GF Score™ of 78/100 and a GF Value™ of NT$86.65 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,094 Retail - Cyclical companies, Zhen Yu Hardware Co ranks better than 57.5% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Zhen Yu Hardware Co's annualized net income for the quarter that ended in Dec. 2025 was NT$47 Mil. Zhen Yu Hardware Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was NT$799 Mil. Therefore, Zhen Yu Hardware Co's annualized ROE % for the quarter that ended in Dec. 2025 was 5.89%.

The historical rank and industry rank for Zhen Yu Hardware Co's ROE % or its related term are showing as below:

ROCO:2947' s ROE % Range Over the Past 10 Years
Min: 6.15   Med: 17.62   Max: 42.18
Current: 8.56

During the past 9 years, Zhen Yu Hardware Co's highest ROE % was 42.18%. The lowest was 6.15%. And the median was 17.62%.

ROCO:2947's ROE % is ranked better than
57.5% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 6.505 vs ROCO:2947: 8.56

Zhen Yu Hardware Co  (ROCO:2947) 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:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=47.068/799.425
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(47.068 / 2385.524)*(2385.524 / 3018.8725)*(3018.8725 / 799.425)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.97 %*0.7902*3.7763
=ROA %*Equity Multiplier
=1.56 %*3.7763
=5.89 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=47.068/799.425
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (47.068 / 58.828) * (58.828 / 68.464) * (68.464 / 2385.524) * (2385.524 / 3018.8725) * (3018.8725 / 799.425)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8001 * 0.8593 * 2.87 % * 0.7902 * 3.7763
=5.89 %

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.


Zhen Yu Hardware Co ROE % Related Terms


Zhen Yu Hardware Co ROE % Historical Data

* Premium members only.

The historical data trend for Zhen Yu Hardware Co'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.

Zhen Yu Hardware Co ROE % Chart

Zhen Yu Hardware Co Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only 17.62 9.11 6.15 8.87 8.59

Zhen Yu Hardware Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.40 13.44 6.31 8.70 5.89

ROCO:2947 vs CASY, WSM, DKS: ROE % Comparison

For the Specialty Retail subindustry, Zhen Yu Hardware Co'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.


Zhen Yu Hardware Co ROE % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Zhen Yu Hardware Co's ROE % distribution charts can be found below:

* The bar in red indicates where Zhen Yu Hardware Co's ROE % falls into.


ROCO:2947
78GF Score
Zhen Yu Hardware Co Ltd ROCO:2947
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhen Yu Hardware Co ROE % Calculation

Zhen Yu Hardware Co's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=67.169/( (767.634+795.887)/ 2 )
=67.169/781.7605
=8.59 %

Zhen Yu Hardware Co's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=47.068/( (802.963+795.887)/ 2 )
=47.068/799.425
=5.89 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 5.89% mean?
Zhen Yu Hardware Co (ROCO:2947) has a ROE % of 5.89% 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 Zhen Yu Hardware Co and its competitors. This is 67% below median its historical median of 17.62. Over the past decade, Zhen Yu Hardware Co's ROE % has ranged from 6.15 to 42.18. According to the industry distribution chart, Zhen Yu Hardware Co ranks #465 out of 1094 companies in the Retail - Cyclical industry, placing it in the top 42.5%.
Is Zhen Yu Hardware Co's ROE % too high?
Zhen Yu Hardware Co's current ROE % of 5.89% is 67% below median its 10-year median of 17.62. Over the past 10 years, this metric has ranged from a low of 6.15 to a high of 42.18. The Retail - Cyclical industry median ROE % is 6.51. Zhen Yu Hardware Co's value of 5.89% is 9.5% below this industry median. Based on the distribution chart, Zhen Yu Hardware Co ranks #465 out of 1094 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Zhen Yu Hardware Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhen Yu Hardware Co's ROE % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Zhen Yu Hardware Co ranks #465 out of 1094 companies for ROE %. This puts Zhen Yu Hardware Co in the upper half of its industry. The industry median ROE % is 6.51. Zhen Yu Hardware Co's value of 5.89% is 9.5% below this benchmark. Historically, Zhen Yu Hardware Co's own ROE % has ranged from 6.15 to 42.18 over the past decade. While the company's 10-year median is 17.62 vs. the industry median of 6.51, Zhen Yu Hardware Co has consistently been below 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 Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.51, based on 1,094 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. Zhen Yu Hardware Co's current ROE % of 5.89% is 9.5% below 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 Zhen Yu Hardware Co and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhen Yu Hardware Co's current ROE % is 5.89%, which is 67% below median its own 10-year median of 17.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhen Yu Hardware Co stock overvalued right now?
Based on GuruFocus' analysis, Zhen Yu Hardware Co (ROCO:2947) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$86.65, compared to a current price of NT$69.40 — trading 19.9% below its estimated fair value. The current ROE % is 5.89%, which is 67% below median its 10-year median of 17.62 and 9.5% below the Retail - Cyclical industry median of 6.51. Zhen Yu Hardware Co's overall GF Score™ is 78/100 with 7 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 Zhen Yu Hardware Co (ROCO:2947), the current ROE % is 5.89% 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 Zhen Yu Hardware Co (ROCO:2947) Overvalued in 2026?

Based on GuruFocus' analysis, Zhen Yu Hardware Co stock appears to be undervalued. The current stock price of NT$69.40 is trading 19.9% below its estimated GF Value™ of NT$86.65. GuruFocus considers Zhen Yu Hardware Co to be Modestly Undervalued.

Key valuation signals for ROCO:2947:

  • ROE %: 5.89% (67% below median its 10-year median of 17.62)
  • GF Value™: NT$86.65 vs. price of NT$69.40 (19.9% below fair value)
  • GF Score™: 78/100 with 7 warning signs
  • Industry Position: 9.5% below the Retail - Cyclical median (#465 of 1094)

No single metric tells the full story. See the ROCO:2947 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zhen Yu Hardware Co Business Description

Address Section 2, Huanzhong Road, No. 27, Xitun District, Taichung, TWN, 407
Zhen Yu Hardware Co Ltd is mainly engaged in the wholesale and retail of hardware in Taiwan. It offers a wide range of hardware, repair tools, and supplies such as knives, scissors, chisels, grinding machines, cutting machines, hand screws, foot lamp holders, LED bulbs, wrenches, screw drivers, etc. The company offers these products through its retail stores located throughout Taiwan, and is also involved in selling them online through its e-commerce website.
78GF Score

Get the complete analysis for ROCO:2947

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$69.40
Price
NT$86.65
GF Value