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The historical rank and industry rank for Cheng Fwa Industrial Co's ROE % or its related term are showing as below:
ROCO:5426'
s ROE % Range Over the Past 10 Years
Min: -4.57 Med: 1.96 Max: 8.18
Current: 3.32
During the past 13 years, Cheng Fwa Industrial Co's highest ROE % was 8.18%. The lowest was -4.57%. And the median was 1.96%.
ROCO:5426's ROE % is ranked worse than 61.78% of 3001
companies
in the Industrial Products industry
Industry Median: 5.86
vs ROCO:5426: 3.32
Cheng Fwa Industrial Co (ROCO:5426) 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.
For the Metal Fabrication subindustry, Cheng Fwa Industrial 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.
Cheng Fwa Industrial Co ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cheng Fwa Industrial Co's ROE % distribution charts can be found below:
* The bar in red indicates where Cheng Fwa Industrial 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.
Cheng Fwa Industrial Co (ROCO:5426) has a ROE % of 3.23% 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 Cheng Fwa Industrial Co and its competitors. This is 65% above median its historical median of 1.96. According to the industry distribution chart, Cheng Fwa Industrial Co ranks #1854 out of 3001 companies in the Industrial Products industry, placing it in the top 61.8%.
Is Cheng Fwa Industrial Co's ROE % too high?
Cheng Fwa Industrial Co's current ROE % of 3.23% is 65% above median its 10-year median of 1.96. The Industrial Products industry median ROE % is 5.86. Cheng Fwa Industrial Co's value of 3.23% is 44.9% below this industry median. Based on the distribution chart, Cheng Fwa Industrial Co ranks #1854 out of 3001 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Cheng Fwa Industrial Co has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cheng Fwa Industrial Co's ROE % compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Cheng Fwa Industrial Co ranks #1854 out of 3001 companies for ROE %. This places Cheng Fwa Industrial Co in the lower half of its industry. The industry median ROE % is 5.86. Cheng Fwa Industrial Co's value of 3.23% is 44.9% below this benchmark. While the company's 10-year median is 1.96 vs. the industry median of 5.86, Cheng Fwa Industrial 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 an Industrial Products company?
The median ROE % among Industrial Products companies is 5.86, based on 3,001 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. Cheng Fwa Industrial Co's current ROE % of 3.23% is 44.9% 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 Cheng Fwa Industrial Co and its competitors. For the Industrial Products industry, the median ROE % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cheng Fwa Industrial Co's current ROE % is 3.23%, which is 65% above median its own 10-year median of 1.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cheng Fwa Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Cheng Fwa Industrial Co (ROCO:5426) is currently considered Fairly Valued. The stock's GF Value™ is NT$24.52, compared to a current price of NT$26.15 — trading 6.6% above its estimated fair value. The current ROE % is 3.23%, which is 65% above median its 10-year median of 1.96 and 44.9% below the Industrial Products industry median of 5.86. Cheng Fwa Industrial Co's overall GF Score™ is 57/100 with 3 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 Cheng Fwa Industrial Co (ROCO:5426), the current ROE % is 3.23% 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 Cheng Fwa Industrial Co (ROCO:5426) Overvalued in 2026?
Based on GuruFocus' analysis, Cheng Fwa Industrial Co stock appears to be overvalued.
The current stock price of NT$26.15 is trading 6.6% above its estimated GF Value™ of NT$24.52.
GuruFocus considers Cheng Fwa Industrial Co to be Fairly Valued.
Key valuation signals for ROCO:5426:
ROE %: 3.23% (65% above median its 10-year median of 1.96)
GF Value™: NT$24.52 vs. price of NT$26.15 (6.6% above fair value)
Industry Position: 44.9% below the Industrial Products median (#1854 of 3001)
No single metric tells the full story. See the ROCO:5426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cheng Fwa Industrial Co Ltd manufactures and supplies precision-stamped metal parts for the computer, telecommunication, networking, and electronic industries. Its products include computer casings and related components, precision stampings, server-side rails, and plastic injection molding solutions, among others. Their core services comprise the following main areas: design and engineering, rapid prototyping, tooling development, precision metal stamping, finishing processing, and plastic injection. Geographically, the Group generates maximum revenue from America, followed by Taiwan, Asia, and other regions.
57GF Score
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