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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.
* 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, U-Media Communications'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.
U-Media Communications ROE % vs Hardware Industry
For the Hardware industry and Technology sector, U-Media Communications's ROE % distribution charts can be found below:
* The bar in red indicates where U-Media Communications'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.
U-Media Communications (ROCO:6470) has a ROE % of 20.89% 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 U-Media Communications and its competitors. This is 28% above median its historical median of 16.38. Over the past decade, U-Media Communications' ROE % has ranged from 11.34 to 26.43. According to the industry distribution chart, U-Media Communications ranks #517 out of 2429 companies in the Hardware industry, placing it in the top 21.3%.
Is U-Media Communications' ROE % too high?
U-Media Communications' current ROE % of 20.89% is 28% above median its 10-year median of 16.38. Over the past 10 years, this metric has ranged from a low of 11.34 to a high of 26.43. The Hardware industry median ROE % is 4.68. U-Media Communications' value of 20.89% is 346.4% above this industry median. Based on the distribution chart, U-Media Communications ranks #517 out of 2429 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, U-Media Communications has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does U-Media Communications' ROE % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, U-Media Communications ranks #517 out of 2429 companies for ROE %. This places U-Media Communications in the top 21% of its industry — outperforming the majority of peers. The industry median ROE % is 4.68. U-Media Communications' value of 20.89% is 346.4% above this benchmark. Historically, U-Media Communications' own ROE % has ranged from 11.34 to 26.43 over the past decade. While the company's 10-year median is 16.38 vs. the industry median of 4.68, U-Media Communications 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 4.68, based on 2,429 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. U-Media Communications's current ROE % of 20.89% is 346.4% 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 U-Media Communications and its competitors. For the Hardware industry, the median ROE % is 4.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. U-Media Communications's current ROE % is 20.89%, which is 28% above median its own 10-year median of 16.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is U-Media Communications stock overvalued right now?
Based on GuruFocus' analysis, U-Media Communications (ROCO:6470) is currently considered Fairly Valued. The stock's GF Value™ is NT$46.66, compared to a current price of NT$47.75 — trading 2.3% above its estimated fair value. The current ROE % is 20.89%, which is 28% above median its 10-year median of 16.38 and 346.4% above the Hardware industry median of 4.68. U-Media Communications' overall GF Score™ is 76/100 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 U-Media Communications (ROCO:6470), the current ROE % is 20.89% 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 U-Media Communications (ROCO:6470) Overvalued in 2026?
Based on GuruFocus' analysis, U-Media Communications stock appears to be overvalued.
The current stock price of NT$47.75 is trading 2.3% above its estimated GF Value™ of NT$46.66.
GuruFocus considers U-Media Communications to be Fairly Valued.
Key valuation signals for ROCO:6470:
ROE %: 20.89% (28% above median its 10-year median of 16.38)
GF Value™: NT$46.66 vs. price of NT$47.75 (2.3% above fair value)
Industry Position: 346.4% above the Hardware median (#517 of 2429)
No single metric tells the full story. See the ROCO:6470 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
U-Media Communications Inc is a Taiwan based company engaged in electronic component manufacturing, wired and wireless, Line communication machinery and equipment manufacturing, data storage and processing equipment manufacturing, manufacturing output, communication industry engineering, information software services, telecommunications control radio frequency equipment input and manufacturing, etc. The products of the company include Wireless Broadband, Wifi products like WST and Router and Wireless AV.
76GF Score
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