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SunCar Technology Group (NAS:SDA) 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 (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 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 Auto & Truck Dealerships subindustry, SunCar Technology Group'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.
SunCar Technology Group ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, SunCar Technology Group's ROE % distribution charts can be found below:
* The bar in red indicates where SunCar Technology Group'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
SunCar Technology Group (SDA) has a ROE % of 8.86% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on SunCar Technology Group and its competitors. According to the industry distribution chart, SunCar Technology Group ranks #990 out of 1303 companies in the Vehicles & Parts industry, placing it in the top 76%.
Is SunCar Technology Group's ROE % too high?
SunCar Technology Group's current ROE % is 8.86%. The Vehicles & Parts industry median ROE % is 6.70. SunCar Technology Group's value of 8.86% is 32.2% above this industry median. Based on the distribution chart, SunCar Technology Group ranks #990 out of 1303 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, SunCar Technology Group has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SunCar Technology Group's ROE % compare to NXB and CRMT?
According to the Vehicles & Parts industry distribution chart, SunCar Technology Group ranks #990 out of 1303 companies for ROE %. This places SunCar Technology Group in the lower half of its industry. The industry median ROE % is 6.70. SunCar Technology Group's value of 8.86% is 32.2% above this benchmark. 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 Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.70, based on 1,303 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. SunCar Technology Group's current ROE % of 8.86% is 32.2% 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 SunCar Technology Group and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SunCar Technology Group's current ROE % is 8.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SunCar Technology Group stock overvalued right now?
Based on GuruFocus' analysis, SunCar Technology Group (SDA) is currently considered Possible Value Trap. The stock's GF Value™ is $9.26, compared to a current price of $0.85 — trading 90.8% below its estimated fair value. The current ROE % is 8.86% and 32.2% above the Vehicles & Parts industry median of 6.70. SunCar Technology Group's overall GF Score™ is 50/100 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 SunCar Technology Group (SDA), the current ROE % is 8.86% as of Mar. 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 SunCar Technology Group (SDA) Overvalued in 2026?
Based on GuruFocus' analysis, SunCar Technology Group stock appears to be undervalued.
The current stock price of $0.85 is trading 90.8% below its estimated GF Value™ of $9.26.
GuruFocus considers SunCar Technology Group to be Possible Value Trap.
Key valuation signals for SDA:
ROE %: 8.86%
GF Value™: $9.26 vs. price of $0.85 (90.8% below fair value)
Industry Position: 32.2% above the Vehicles & Parts median (#990 of 1303)
No single metric tells the full story. See the SDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SunCar Technology Group Inc operates digital automotive aftersales market service platform and vehicle insurance technology platform. It develops and operates online platforms that connect drivers in China with a range of aftermarket automotive services and insurance coverage options from a nationwide network of service providers. These comprehensive digital systems are built on SunCar's multi-tenant, cloud-based platform. Revenues from its continuing operations are mainly generated from providing auto eInsurance services, technology services, and auto services.
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