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Kao Fong Machinery CoROCO:4510 51 ROE % is 25.32% as of Jun. 2026, which is 804% above its 10-year median of 2.80. GuruFocus rates ROCO:4510 with a GF Score™ of 51/100 and a GF Value™ of NT$43.67 (Fairly Valued). The stock has 7 warning signs investors should review. Among 3,016 Industrial Products companies, Kao Fong Machinery Co ranks worse than 52.49% on this metric.
Kao Fong Machinery Co (ROCO:4510) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) 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 Specialty Industrial Machinery subindustry, Kao Fong Machinery 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.
Kao Fong Machinery Co ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kao Fong Machinery Co's ROE % distribution charts can be found below:
* The bar in red indicates where Kao Fong Machinery 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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Kao Fong Machinery Co (ROCO:4510) has a ROE % of 25.32% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Kao Fong Machinery Co and its competitors. This is 804% above median its historical median of 2.80. According to the industry distribution chart, Kao Fong Machinery Co ranks #1583 out of 3016 companies in the Industrial Products industry, placing it in the top 52.5%.
Is Kao Fong Machinery Co's ROE % too high?
Kao Fong Machinery Co's current ROE % of 25.32% is 804% above median its 10-year median of 2.80. The Industrial Products industry median ROE % is 6.24. Kao Fong Machinery Co's value of 25.32% is 306.1% above this industry median. Based on the distribution chart, Kao Fong Machinery Co ranks #1583 out of 3016 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Kao Fong Machinery Co has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kao Fong Machinery Co's ROE % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Kao Fong Machinery Co ranks #1583 out of 3016 companies for ROE %. This places Kao Fong Machinery Co in the lower half of its industry. The industry median ROE % is 6.24. Kao Fong Machinery Co's value of 25.32% is 306.1% above this benchmark. While the company's 10-year median is 2.80 vs. the industry median of 6.24, Kao Fong Machinery Co 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 Products company?
The median ROE % among Industrial Products companies is 6.24, based on 3,016 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. Kao Fong Machinery Co's current ROE % of 25.32% is 306.1% 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 Kao Fong Machinery Co and its competitors. For the Industrial Products industry, the median ROE % is 6.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kao Fong Machinery Co's current ROE % is 25.32%, which is 804% above median its own 10-year median of 2.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kao Fong Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Kao Fong Machinery Co (ROCO:4510) is currently considered Fairly Valued. The stock's GF Value™ is NT$43.67, compared to a current price of NT$45.75 — trading 4.8% above its estimated fair value. The current ROE % is 25.32%, which is 804% above median its 10-year median of 2.80 and 306.1% above the Industrial Products industry median of 6.24. Kao Fong Machinery Co's overall GF Score™ is 51/100 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 Kao Fong Machinery Co (ROCO:4510), the current ROE % is 25.32% as of Jun. 2026. 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 Kao Fong Machinery Co (ROCO:4510) Overvalued in 2026?
Based on GuruFocus' analysis, Kao Fong Machinery Co stock appears to be overvalued.
The current stock price of NT$45.75 is trading 4.8% above its estimated GF Value™ of NT$43.67.
GuruFocus considers Kao Fong Machinery Co to be Fairly Valued.
Key valuation signals for ROCO:4510:
ROE %: 25.32% (804% above median its 10-year median of 2.80)
GF Value™: NT$43.67 vs. price of NT$45.75 (4.8% above fair value)
Industry Position: 306.1% above the Industrial Products median (#1583 of 3016)
No single metric tells the full story. See the ROCO:4510 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kao Fong Machinery Co Ltd is engaged in the manufacture and distribution of machine tools and machinery equipment in Taiwan. The products of the company consist of Double Column Machining Center, vertical machining centers, horizontal machining centers, numerical control milling machines, bridge machining centers, and other machinery.
51GF Score
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