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 (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.
* 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 Electronic Components subindustry, ABC Taiwan 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.
ABC Taiwan Electronics ROE % vs Hardware Industry
For the Hardware industry and Technology sector, ABC Taiwan Electronics's ROE % distribution charts can be found below:
* The bar in red indicates where ABC Taiwan 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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
ABC Taiwan Electronics (ROCO:3236) has a ROE % of 5.46% 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 ABC Taiwan Electronics and its competitors. This is 15% below median its historical median of 6.41. Over the past decade, ABC Taiwan Electronics' ROE % has ranged from 0.29 to 18.61. According to the industry distribution chart, ABC Taiwan Electronics ranks #1460 out of 2426 companies in the Hardware industry, placing it in the top 60.2%.
Is ABC Taiwan Electronics' ROE % too high?
ABC Taiwan Electronics' current ROE % of 5.46% is 15% below median its 10-year median of 6.41. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 18.61. The Hardware industry median ROE % is 4.59. ABC Taiwan Electronics' value of 5.46% is 19% above this industry median. Based on the distribution chart, ABC Taiwan Electronics ranks #1460 out of 2426 companies in the Hardware industry, which is below the industry midpoint. Overall, ABC Taiwan Electronics has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ABC Taiwan Electronics' ROE % compare to APH and GLW?
According to the Hardware industry distribution chart, ABC Taiwan Electronics ranks #1460 out of 2426 companies for ROE %. This places ABC Taiwan Electronics in the lower half of its industry. The industry median ROE % is 4.59. ABC Taiwan Electronics' value of 5.46% is 19% above this benchmark. Historically, ABC Taiwan Electronics' own ROE % has ranged from 0.29 to 18.61 over the past decade. While the company's 10-year median is 6.41 vs. the industry median of 4.59, ABC Taiwan 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 a Hardware company?
The median ROE % among Hardware companies is 4.59, based on 2,426 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. ABC Taiwan Electronics's current ROE % of 5.46% is 19% 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 ABC Taiwan Electronics and its competitors. For the Hardware industry, the median ROE % is 4.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ABC Taiwan Electronics's current ROE % is 5.46%, which is 15% below median its own 10-year median of 6.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ABC Taiwan Electronics stock overvalued right now?
Based on GuruFocus' analysis, ABC Taiwan Electronics (ROCO:3236) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$19.86, compared to a current price of NT$62.70 — trading 215.7% above its estimated fair value. The current ROE % is 5.46%, which is 15% below median its 10-year median of 6.41 and 19% above the Hardware industry median of 4.59. ABC Taiwan Electronics' overall GF Score™ is 44/100 with 10 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 ABC Taiwan Electronics (ROCO:3236), the current ROE % is 5.46% 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 ABC Taiwan Electronics (ROCO:3236) Overvalued in 2026?
Based on GuruFocus' analysis, ABC Taiwan Electronics stock appears to be overvalued.
The current stock price of NT$62.70 is trading 215.7% above its estimated GF Value™ of NT$19.86.
GuruFocus considers ABC Taiwan Electronics to be Significantly Overvalued.
Key valuation signals for ROCO:3236:
ROE %: 5.46% (15% below median its 10-year median of 6.41)
GF Value™: NT$19.86 vs. price of NT$62.70 (215.7% above fair value)
Industry Position: 19% above the Hardware median (#1460 of 2426)
No single metric tells the full story. See the ROCO:3236 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ABC Taiwan Electronics Corp is a manufacturer of electronic components. It offers chip inductors, power inductors, filter inductive components, transformers, micro-porous ceramic (MPC) heat sinks, precision metal stamping parts, LED lighting fixtures, and other associated products used in various electronic products, communication electronic products, computer and peripheral equipment, industrial electronic equipment, etc. The Group's reportable units are Inductors and Others, out of which the Inductors business generates the maximum revenue. Geographically, it derives maximum revenue from the USA, and the rest from Germany, China, Taiwan, and other markets.
44GF Score
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