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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 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.
Universal Microwave Technology ROE % Related Terms
Universal Microwave Technology ROE % Historical Data
* 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 Communication Equipment subindustry, Universal Microwave Technology'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.
Universal Microwave Technology ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Universal Microwave Technology's ROE % distribution charts can be found below:
* The bar in red indicates where Universal Microwave Technology'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.
Universal Microwave Technology (ROCO:3491) has a ROE % of 27.29% 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 Universal Microwave Technology and its competitors. This is 108% above median its historical median of 13.15. Over the past decade, Universal Microwave Technology's ROE % has ranged from 6.40 to 24.26. According to the industry distribution chart, Universal Microwave Technology ranks #276 out of 2428 companies in the Hardware industry, placing it in the top 11.4%.
Is Universal Microwave Technology's ROE % too high?
Universal Microwave Technology's current ROE % of 27.29% is 108% above median its 10-year median of 13.15. Over the past 10 years, this metric has ranged from a low of 6.40 to a high of 24.26. The Hardware industry median ROE % is 4.69. Universal Microwave Technology's value of 27.29% is 482.5% above this industry median. Based on the distribution chart, Universal Microwave Technology ranks #276 out of 2428 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Universal Microwave Technology has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Universal Microwave Technology's ROE % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Universal Microwave Technology ranks #276 out of 2428 companies for ROE %. This places Universal Microwave Technology in the top 11% of its industry — outperforming the majority of peers. The industry median ROE % is 4.69. Universal Microwave Technology's value of 27.29% is 482.5% above this benchmark. Historically, Universal Microwave Technology's own ROE % has ranged from 6.40 to 24.26 over the past decade. While the company's 10-year median is 13.15 vs. the industry median of 4.69, Universal Microwave Technology 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 4.69, based on 2,428 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. Universal Microwave Technology's current ROE % of 27.29% is 482.5% 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 Universal Microwave Technology and its competitors. For the Hardware industry, the median ROE % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Microwave Technology's current ROE % is 27.29%, which is 108% above median its own 10-year median of 13.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Microwave Technology stock overvalued right now?
Based on GuruFocus' analysis, Universal Microwave Technology (ROCO:3491) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$496.24, compared to a current price of NT$1,220.00 — trading 145.8% above its estimated fair value. The current ROE % is 27.29%, which is 108% above median its 10-year median of 13.15 and 482.5% above the Hardware industry median of 4.69. Universal Microwave Technology's overall GF Score™ is 71/100 with 5 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 Universal Microwave Technology (ROCO:3491), the current ROE % is 27.29% 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 Universal Microwave Technology (ROCO:3491) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Microwave Technology stock appears to be overvalued.
The current stock price of NT$1,220.00 is trading 145.8% above its estimated GF Value™ of NT$496.24.
GuruFocus considers Universal Microwave Technology to be Significantly Overvalued.
Key valuation signals for ROCO:3491:
ROE %: 27.29% (108% above median its 10-year median of 13.15)
GF Value™: NT$496.24 vs. price of NT$1,220.00 (145.8% above fair value)
Industry Position: 482.5% above the Hardware median (#276 of 2428)
No single metric tells the full story. See the ROCO:3491 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Microwave Technology Business Description
Universal Microwave Technology Inc is engaged in the design, research, development, and manufacturing of Low Earth Orbit satellites and high-frequency microwave communication components. Its segments include Microwave / Millimeter Wave Products, Radio Frequency Products, and Communication Network Engineering Services. It derives the majority of revenue from Microwave / Millimeter Wave Products.
71GF Score
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