Sun Hung KaiSHGKY 69 ROE % is 6.40% as of Dec. 2025, which is 5% below its 10-year median of 6.75. GuruFocus rates SHGKY with a GF Score™ of 69/100 and a GF Value™ of $3.69 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 529 Credit Services companies, Sun Hung Kai ranks better than 52.55% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Sun Hung Kai's annualized net income for the quarter that ended in Dec. 2025 was $181.5 Mil. Sun Hung Kai's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was $2,837.2 Mil. Therefore, Sun Hung Kai's annualized ROE % for the quarter that ended in Dec. 2025 was 6.40%.
The historical rank and industry rank for Sun Hung Kai's ROE % or its related term are showing as below:
SHGKY'
s ROE % Range Over the Past 10 Years
Min: -6.47 Med: 6.75 Max: 11.85
Current: 7.3
During the past 13 years, Sun Hung Kai's highest ROE % was 11.85%. The lowest was -6.47%. And the median was 6.75%.
SHGKY's ROE % is ranked better than 52.55% of 529
companies
in the Credit Services industry
Industry Median: 6.61
vs SHGKY: 7.30
Sun Hung Kai (OTCPK:SHGKY) 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 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.
Sun Hung Kai ROE % Related Terms
Sun Hung Kai ROE % Historical Data
* Premium members only.
The historical data trend for Sun Hung Kai's ROE % can be seen below:
* 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 Credit Services subindustry, Sun Hung Kai'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.
Sun Hung Kai ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Sun Hung Kai's ROE % distribution charts can be found below:
* The bar in red indicates where Sun Hung Kai'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.
Sun Hung Kai (SHGKY) has a ROE % of 6.40% 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 Sun Hung Kai and its competitors. This is near median its historical median of 6.75. According to the industry distribution chart, Sun Hung Kai ranks #251 out of 529 companies in the Credit Services industry, placing it in the top 47.4%.
Is Sun Hung Kai's ROE % too high?
Sun Hung Kai's current ROE % of 6.40% is near median its 10-year median of 6.75. The Credit Services industry median ROE % is 6.61. Sun Hung Kai's value of 6.40% is 3.2% below this industry median. Based on the distribution chart, Sun Hung Kai ranks #251 out of 529 companies in the Credit Services industry, which is above the industry midpoint. Overall, Sun Hung Kai has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sun Hung Kai's ROE % compare to V and MA?
According to the Credit Services industry distribution chart, Sun Hung Kai ranks #251 out of 529 companies for ROE %. This puts Sun Hung Kai in the upper half of its industry. The industry median ROE % is 6.61. Sun Hung Kai's value of 6.40% is 3.2% below this benchmark. While the company's 10-year median is 6.75 vs. the industry median of 6.61, Sun Hung Kai 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 Credit Services company?
The median ROE % among Credit Services companies is 6.61, based on 529 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. Sun Hung Kai's current ROE % of 6.40% is 3.2% 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 Sun Hung Kai and its competitors. For the Credit Services industry, the median ROE % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sun Hung Kai's current ROE % is 6.40%, which is near median its own 10-year median of 6.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sun Hung Kai stock overvalued right now?
Based on GuruFocus' analysis, Sun Hung Kai (SHGKY) is currently considered Significantly Undervalued. The stock's GF Value™ is $3.69, compared to a current price of $2.12 — trading 42.5% below its estimated fair value. The current ROE % is 6.40%, which is near median its 10-year median of 6.75 and 3.2% below the Credit Services industry median of 6.61. Sun Hung Kai's overall GF Score™ is 69/100 with 2 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 Sun Hung Kai (SHGKY), the current ROE % is 6.40% 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 Sun Hung Kai (SHGKY) Overvalued in 2026?
Based on GuruFocus' analysis, Sun Hung Kai stock appears to be undervalued.
The current stock price of $2.12 is trading 42.5% below its estimated GF Value™ of $3.69.
GuruFocus considers Sun Hung Kai to be Significantly Undervalued.
Key valuation signals for SHGKY:
ROE %: 6.40% (near median its 10-year median of 6.75)
GF Value™: $3.69 vs. price of $2.12 (42.5% below fair value)
Industry Position: 3.2% below the Credit Services median (#251 of 529)
No single metric tells the full story. See the SHGKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sun Hung Kai & Co Ltd is an investment and finance firm. Its businesses are Credit Business, Investment Management, and Funds Management. It offers wealth management and brokerage, capital markets, consumer finance, structured finance, and principal investment services. The geographical area of operation is Hong Kong, Mainland China, and others. Its revenue is derived from the Hong Kong region. Its segments comprise Consumer Finance, Mortgage Loans, Investment Management, Alternative Solutions and Group Management and Support. The company generates maximum revenue from the Consumer Finance segment.
69GF Score
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