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Nextlink Technology CoROCO:6997 -4.82%49 ROE % is 28.24% as of Dec. 2025, which is 10% below its 10-year median of 31.42. GuruFocus rates ROCO:6997 with a GF Score™ of 49/100. The stock has 3 warning signs investors should review. Among 2,683 Software companies, Nextlink Technology Co ranks better than 80.28% on this metric.
The historical rank and industry rank for Nextlink Technology Co's ROE % or its related term are showing as below:
ROCO:6997'
s ROE % Range Over the Past 10 Years
Min: 18 Med: 31.42 Max: 44.77
Current: 18.52
During the past 6 years, Nextlink Technology Co's highest ROE % was 44.77%. The lowest was 18.00%. And the median was 31.42%.
ROCO:6997's ROE % is ranked better than 80.28% of 2683
companies
in the Software industry
Industry Median: 4.74
vs ROCO:6997: 18.52
Nextlink Technology Co (ROCO:6997) 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 Information Technology Services subindustry, Nextlink Technology 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.
Nextlink Technology Co ROE % vs Software Industry
For the Software industry and Technology sector, Nextlink Technology Co's ROE % distribution charts can be found below:
* The bar in red indicates where Nextlink Technology 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.
Nextlink Technology Co (ROCO:6997) has a ROE % of 28.24% 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 Nextlink Technology Co and its competitors. This is 10% below median its historical median of 31.42. Over the past decade, Nextlink Technology Co's ROE % has ranged from 18.00 to 44.77. According to the industry distribution chart, Nextlink Technology Co ranks #529 out of 2683 companies in the Software industry, placing it in the top 19.7%.
Is Nextlink Technology Co's ROE % too high?
Nextlink Technology Co's current ROE % of 28.24% is 10% below median its 10-year median of 31.42. Over the past 10 years, this metric has ranged from a low of 18.00 to a high of 44.77. The Software industry median ROE % is 4.74. Nextlink Technology Co's value of 28.24% is 495.8% above this industry median. Based on the distribution chart, Nextlink Technology Co ranks #529 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Nextlink Technology Co has a GF Score™ of 49/100, reflecting its overall financial health beyond just this single metric.
How does Nextlink Technology Co's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Nextlink Technology Co ranks #529 out of 2683 companies for ROE %. This places Nextlink Technology Co in the top 20% of its industry — outperforming the majority of peers. The industry median ROE % is 4.74. Nextlink Technology Co's value of 28.24% is 495.8% above this benchmark. Historically, Nextlink Technology Co's own ROE % has ranged from 18.00 to 44.77 over the past decade. While the company's 10-year median is 31.42 vs. the industry median of 4.74, Nextlink Technology 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 a Software company?
The median ROE % among Software companies is 4.74, based on 2,683 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. Nextlink Technology Co's current ROE % of 28.24% is 495.8% 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 Nextlink Technology Co and its competitors. For the Software industry, the median ROE % is 4.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nextlink Technology Co's current ROE % is 28.24%, which is 10% below median its own 10-year median of 31.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nextlink Technology Co stock overvalued right now?
Nextlink Technology Co (ROCO:6997) has a current ROE % of 28.24%. The current ROE % is 28.24%, which is 10% below median its 10-year median of 31.42 and 495.8% above the Software industry median of 4.74. Nextlink Technology Co's overall GF Score™ is 49/100 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 Nextlink Technology Co (ROCO:6997), the current ROE % is 28.24% 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.
Nextlink Technology Co Ltd is a company who has multi-platform certified architects and an experienced team at home and abroad to provide enterprises with professional, diversified and global cloud services, Solutions and Managed Services. The company provides public cloud, private cloud and hybrid cloud integration services, including Amazon Web Service and Google Cloud, Alibaba Cloud and Mircosoft Azure provided by its subsidiary Microfusion, creating a multi-cloud service architecture tailored for enterprises and building It has a complete cloud ecosystem and has more than 2,000 customer service experience at home and abroad. Customer industries include: high-tech, games, media, retail, e-commerce helping enterprises maximize operational synergies.
49GF Score
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