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Kwang Ming Silk Mill CoROCO:4420 -1.11%64 ROE % is 3.22% as of Dec. 2025, which is 58% below its 10-year median of 7.75. GuruFocus rates ROCO:4420 with a GF Score™ of 64/100 and a GF Value™ of NT$75.13 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,025 Manufacturing - Apparel & Accessories companies, Kwang Ming Silk Mill Co ranks better than 83.51% on this metric.
Kwang Ming Silk Mill Co (ROCO:4420) 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 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.
Kwang Ming Silk Mill Co ROE % Competitor Comparison
For the Textile Manufacturing subindustry, Kwang Ming Silk Mill 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.
Kwang Ming Silk Mill Co ROE % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Kwang Ming Silk Mill Co's ROE % distribution charts can be found below:
* The bar in red indicates where Kwang Ming Silk Mill Co'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.
Kwang Ming Silk Mill Co (ROCO:4420) has a ROE % of 3.22% 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 Kwang Ming Silk Mill Co and its competitors. This is 58% below median its historical median of 7.75. According to the industry distribution chart, Kwang Ming Silk Mill Co ranks #169 out of 1025 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 16.5%.
Is Kwang Ming Silk Mill Co's ROE % too high?
Kwang Ming Silk Mill Co's current ROE % of 3.22% is 58% below median its 10-year median of 7.75. The Manufacturing - Apparel & Accessories industry median ROE % is 4.04. Kwang Ming Silk Mill Co's value of 3.22% is 20.3% below this industry median. Based on the distribution chart, Kwang Ming Silk Mill Co ranks #169 out of 1025 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Kwang Ming Silk Mill Co has a GF Score™ of 64/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kwang Ming Silk Mill Co's ROE % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Kwang Ming Silk Mill Co ranks #169 out of 1025 companies for ROE %. This places Kwang Ming Silk Mill Co in the top 17% of its industry — outperforming the majority of peers. The industry median ROE % is 4.04. Kwang Ming Silk Mill Co's value of 3.22% is 20.3% below this benchmark. While the company's 10-year median is 7.75 vs. the industry median of 4.04, Kwang Ming Silk Mill 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 Manufacturing - Apparel & Accessories company?
The median ROE % among Manufacturing - Apparel & Accessories companies is 4.04, based on 1,025 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. Kwang Ming Silk Mill Co's current ROE % of 3.22% is 20.3% 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 Kwang Ming Silk Mill Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROE % is 4.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kwang Ming Silk Mill Co's current ROE % is 3.22%, which is 58% below median its own 10-year median of 7.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kwang Ming Silk Mill Co stock overvalued right now?
Based on GuruFocus' analysis, Kwang Ming Silk Mill Co (ROCO:4420) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$75.13, compared to a current price of NT$35.60 — trading 52.6% below its estimated fair value. The current ROE % is 3.22%, which is 58% below median its 10-year median of 7.75 and 20.3% below the Manufacturing - Apparel & Accessories industry median of 4.04. Kwang Ming Silk Mill Co's overall GF Score™ is 64/100 with 2 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 Kwang Ming Silk Mill Co (ROCO:4420), the current ROE % is 3.22% 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 Kwang Ming Silk Mill Co (ROCO:4420) Overvalued in 2026?
Based on GuruFocus' analysis, Kwang Ming Silk Mill Co stock appears to be undervalued.
The current stock price of NT$35.60 is trading 52.6% below its estimated GF Value™ of NT$75.13.
GuruFocus considers Kwang Ming Silk Mill Co to be Significantly Undervalued.
Key valuation signals for ROCO:4420:
ROE %: 3.22% (58% below median its 10-year median of 7.75)
GF Value™: NT$75.13 vs. price of NT$35.60 (52.6% below fair value)
Industry Position: 20.3% below the Manufacturing - Apparel & Accessories median (#169 of 1025)
No single metric tells the full story. See the ROCO:4420 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kwang Ming Silk Mill Co Ltd is mainly engaged in the textile industry, including the manufacture of man-made fibers, dyeing and weaving of fabrics, and the purchase and sale of raw materials, supplies, and finished goods related to fabrics. The Company is also involved in real estate leasing, as well as industrial factory development and rental. It operates through two reportable segments: the Fiber segment, which generates the maximum revenue and is engaged in the manufacture and trading of textured yarn, and the Real Estate Development segment, which focuses on housing, commercial buildings, and factory development and rental.
64GF Score
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