Salvatore Ferragamo SpASFRGF 63 ROE % is 2.81% as of Dec. 2025, which is 72% below its 10-year median of 9.99. GuruFocus rates SFRGF with a GF Score™ of 63/100 and a GF Value™ of $6.81 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,097 Retail - Cyclical companies, Salvatore Ferragamo SpA ranks worse than 84.05% on this metric.
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 two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (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 Luxury Goods subindustry, Salvatore Ferragamo SpA'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.
Salvatore Ferragamo SpA ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Salvatore Ferragamo SpA's ROE % distribution charts can be found below:
* The bar in red indicates where Salvatore Ferragamo SpA'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 two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Salvatore Ferragamo SpA (SFRGF) has a ROE % of 2.81% 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 Salvatore Ferragamo SpA and its competitors. This is 72% below median its historical median of 9.99. According to the industry distribution chart, Salvatore Ferragamo SpA ranks #922 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 84%.
Is Salvatore Ferragamo SpA's ROE % too high?
Salvatore Ferragamo SpA's current ROE % of 2.81% is 72% below median its 10-year median of 9.99. The Retail - Cyclical industry median ROE % is 6.46. Salvatore Ferragamo SpA's value of 2.81% is 56.5% below this industry median. Based on the distribution chart, Salvatore Ferragamo SpA ranks #922 out of 1097 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Salvatore Ferragamo SpA has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Salvatore Ferragamo SpA's ROE % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Salvatore Ferragamo SpA ranks #922 out of 1097 companies for ROE %. This places Salvatore Ferragamo SpA in the lower half of its industry. The industry median ROE % is 6.46. Salvatore Ferragamo SpA's value of 2.81% is 56.5% below this benchmark. While the company's 10-year median is 9.99 vs. the industry median of 6.46, Salvatore Ferragamo SpA 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 a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.46, based on 1,097 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. Salvatore Ferragamo SpA's current ROE % of 2.81% is 56.5% 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 Salvatore Ferragamo SpA and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Salvatore Ferragamo SpA's current ROE % is 2.81%, which is 72% below median its own 10-year median of 9.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Salvatore Ferragamo SpA stock overvalued right now?
Based on GuruFocus' analysis, Salvatore Ferragamo SpA (SFRGF) is currently considered Significantly Overvalued. The stock's GF Value™ is $6.81, compared to a current price of $8.90 — trading 30.7% above its estimated fair value. The current ROE % is 2.81%, which is 72% below median its 10-year median of 9.99 and 56.5% below the Retail - Cyclical industry median of 6.46. Salvatore Ferragamo SpA's overall GF Score™ is 63/100 with 7 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 Salvatore Ferragamo SpA (SFRGF), the current ROE % is 2.81% 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 Salvatore Ferragamo SpA (SFRGF) Overvalued in 2026?
Based on GuruFocus' analysis, Salvatore Ferragamo SpA stock appears to be overvalued.
The current stock price of $8.90 is trading 30.7% above its estimated GF Value™ of $6.81.
GuruFocus considers Salvatore Ferragamo SpA to be Significantly Overvalued.
Key valuation signals for SFRGF:
ROE %: 2.81% (72% below median its 10-year median of 9.99)
GF Value™: $6.81 vs. price of $8.90 (30.7% above fair value)
Industry Position: 56.5% below the Retail - Cyclical median (#922 of 1097)
No single metric tells the full story. See the SFRGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1927, Salvatore Ferragamo is an Italian monobrand company known for its footwear and accessories. The company generates about 45% of revenue in the fragmented footwear category, 40% in leather goods, 6% in apparel, and 7% in accessories. It was one of the pioneers in establishing a presence in Asia, where it generates 28% of sales and other emerging markets (8% of sales in Central and South America). Ferragamo generates 24% of revenue in Europe, 30% in the US, and 8% in Japan.
63GF Score
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