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 Engineering & Construction subindustry, Chang Jia M&E Engineering'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.
Chang Jia M&E Engineering ROE % vs Construction Industry
For the Construction industry and Industrials sector, Chang Jia M&E Engineering's ROE % distribution charts can be found below:
* The bar in red indicates where Chang Jia M&E Engineering'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.
Chang Jia M&E Engineering (ROCO:4550) has a ROE % of 11.05% 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 Chang Jia M&E Engineering and its competitors. This is near median its historical median of 11.23. Over the past decade, Chang Jia M&E Engineering's ROE % has ranged from 5.25 to 13.55. According to the industry distribution chart, Chang Jia M&E Engineering ranks #977 out of 1738 companies in the Construction industry, placing it in the top 56.2%.
Is Chang Jia M&E Engineering's ROE % too high?
Chang Jia M&E Engineering's current ROE % of 11.05% is near median its 10-year median of 11.23. Over the past 10 years, this metric has ranged from a low of 5.25 to a high of 13.55. The Construction industry median ROE % is 6.72. Chang Jia M&E Engineering's value of 11.05% is 64.6% above this industry median. Based on the distribution chart, Chang Jia M&E Engineering ranks #977 out of 1738 companies in the Construction industry, which is below the industry midpoint. Overall, Chang Jia M&E Engineering has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chang Jia M&E Engineering's ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Chang Jia M&E Engineering ranks #977 out of 1738 companies for ROE %. This places Chang Jia M&E Engineering in the lower half of its industry. The industry median ROE % is 6.72. Chang Jia M&E Engineering's value of 11.05% is 64.6% above this benchmark. Historically, Chang Jia M&E Engineering's own ROE % has ranged from 5.25 to 13.55 over the past decade. While the company's 10-year median is 11.23 vs. the industry median of 6.72, Chang Jia M&E Engineering 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 Construction company?
The median ROE % among Construction companies is 6.72, based on 1,738 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. Chang Jia M&E Engineering's current ROE % of 11.05% is 64.6% 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 Chang Jia M&E Engineering and its competitors. For the Construction industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chang Jia M&E Engineering's current ROE % is 11.05%, which is near median its own 10-year median of 11.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chang Jia M&E Engineering stock overvalued right now?
Based on GuruFocus' analysis, Chang Jia M&E Engineering (ROCO:4550) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$17.77, compared to a current price of NT$24.50 — trading 37.9% above its estimated fair value. The current ROE % is 11.05%, which is near median its 10-year median of 11.23 and 64.6% above the Construction industry median of 6.72. Chang Jia M&E Engineering's overall GF Score™ is 58/100 with 4 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 Chang Jia M&E Engineering (ROCO:4550), the current ROE % is 11.05% 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 Chang Jia M&E Engineering (ROCO:4550) Overvalued in 2026?
Based on GuruFocus' analysis, Chang Jia M&E Engineering stock appears to be overvalued.
The current stock price of NT$24.50 is trading 37.9% above its estimated GF Value™ of NT$17.77.
GuruFocus considers Chang Jia M&E Engineering to be Significantly Overvalued.
Key valuation signals for ROCO:4550:
ROE %: 11.05% (near median its 10-year median of 11.23)
GF Value™: NT$17.77 vs. price of NT$24.50 (37.9% above fair value)
Industry Position: 64.6% above the Construction median (#977 of 1738)
No single metric tells the full story. See the ROCO:4550 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chang Jia M&E Engineering Corp is a Taiwan-based company engaged in the planning, design and engineering contracting of electrical, drainage and air conditioning equipment for various commercial buildings and factories, as well as the operation of sports centers and the import and export of the above-mentioned equipment.
58GF Score
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