Singapore Technologies EngineeringSGGKY 69 ROE % is 4.52% as of Dec. 2025, which is 80% below its 10-year median of 23.03. GuruFocus rates SGGKY with a GF Score™ of 69/100 and a GF Value™ of $42.51 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 347 Aerospace & Defense companies, Singapore Technologies Engineering ranks better than 80.69% 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.
Singapore Technologies Engineering ROE % Related Terms
Singapore Technologies Engineering ROE % Historical Data
* 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 Aerospace & Defense subindustry, Singapore Technologies Engineering'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.
Singapore Technologies Engineering ROE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Singapore Technologies Engineering's ROE % distribution charts can be found below:
* The bar in red indicates where Singapore Technologies Engineering'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.
Singapore Technologies Engineering (SGGKY) has a ROE % of 4.52% 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 Singapore Technologies Engineering and its competitors. This is 80% below median its historical median of 23.03. Over the past decade, Singapore Technologies Engineering's ROE % has ranged from 17.44 to 27.38. According to the industry distribution chart, Singapore Technologies Engineering ranks #67 out of 347 companies in the Aerospace & Defense industry, placing it in the top 19.3%.
Is Singapore Technologies Engineering's ROE % too high?
Singapore Technologies Engineering's current ROE % of 4.52% is 80% below median its 10-year median of 23.03. Over the past 10 years, this metric has ranged from a low of 17.44 to a high of 27.38. The Aerospace & Defense industry median ROE % is 5.91. Singapore Technologies Engineering's value of 4.52% is 23.5% below this industry median. Based on the distribution chart, Singapore Technologies Engineering ranks #67 out of 347 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Singapore Technologies Engineering has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Singapore Technologies Engineering's ROE % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Singapore Technologies Engineering ranks #67 out of 347 companies for ROE %. This places Singapore Technologies Engineering in the top 19% of its industry — outperforming the majority of peers. The industry median ROE % is 5.91. Singapore Technologies Engineering's value of 4.52% is 23.5% below this benchmark. Historically, Singapore Technologies Engineering's own ROE % has ranged from 17.44 to 27.38 over the past decade. While the company's 10-year median is 23.03 vs. the industry median of 5.91, Singapore Technologies Engineering 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 Aerospace & Defense company?
The median ROE % among Aerospace & Defense companies is 5.91, based on 347 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. Singapore Technologies Engineering's current ROE % of 4.52% is 23.5% 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 Singapore Technologies Engineering and its competitors. For the Aerospace & Defense industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Singapore Technologies Engineering's current ROE % is 4.52%, which is 80% below median its own 10-year median of 23.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Singapore Technologies Engineering stock overvalued right now?
Based on GuruFocus' analysis, Singapore Technologies Engineering (SGGKY) is currently considered Significantly Overvalued. The stock's GF Value™ is $42.51, compared to a current price of $85.00 — trading 100% above its estimated fair value. The current ROE % is 4.52%, which is 80% below median its 10-year median of 23.03 and 23.5% below the Aerospace & Defense industry median of 5.91. Singapore Technologies Engineering's overall GF Score™ is 69/100 with 11 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 Singapore Technologies Engineering (SGGKY), the current ROE % is 4.52% 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 Singapore Technologies Engineering (SGGKY) Overvalued in 2026?
Based on GuruFocus' analysis, Singapore Technologies Engineering stock appears to be overvalued.
The current stock price of $85.00 is trading 100% above its estimated GF Value™ of $42.51.
GuruFocus considers Singapore Technologies Engineering to be Significantly Overvalued.
Key valuation signals for SGGKY:
ROE %: 4.52% (80% below median its 10-year median of 23.03)
GF Value™: $42.51 vs. price of $85.00 (100% above fair value)
Industry Position: 23.5% below the Aerospace & Defense median (#67 of 347)
No single metric tells the full story. See the SGGKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Singapore Technologies Engineering Business Description
ST Engineering is a Singaporean government-linked commercial and defense engineering group. Its key businesses include aircraft maintenance, repair and overhaul services, in which it is the world's largest independent third-party provider. The company's fastest-growing activities involve applications to defense and smart city solutions where it provides tolling solutions, traffic control systems, command and control dashboards, cybersecurity tools, and other related components. Around two thirds of the company's revenue comes from commercial clients while the remainder is defense.
69GF Score
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