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China Tourism Group Duty Free (SHSE:601888) 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.
China Tourism Group Duty Free ROE % Related Terms
China Tourism Group Duty Free 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 Specialty Retail subindustry, China Tourism Group Duty Free'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.
China Tourism Group Duty Free ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, China Tourism Group Duty Free's ROE % distribution charts can be found below:
* The bar in red indicates where China Tourism Group Duty Free'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.
China Tourism Group Duty Free (SHSE:601888) has a ROE % of 16.56% 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 China Tourism Group Duty Free and its competitors. This is near median its historical median of 17.11. Over the past decade, China Tourism Group Duty Free's ROE % has ranged from 6.49 to 37.18. According to the industry distribution chart, China Tourism Group Duty Free ranks #531 out of 1101 companies in the Retail - Cyclical industry, placing it in the top 48.2%.
Is China Tourism Group Duty Free's ROE % too high?
China Tourism Group Duty Free's current ROE % of 16.56% is near median its 10-year median of 17.11. Over the past 10 years, this metric has ranged from a low of 6.49 to a high of 37.18. The Retail - Cyclical industry median ROE % is 6.54. China Tourism Group Duty Free's value of 16.56% is 153.2% above this industry median. Based on the distribution chart, China Tourism Group Duty Free ranks #531 out of 1101 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, China Tourism Group Duty Free has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Tourism Group Duty Free's ROE % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, China Tourism Group Duty Free ranks #531 out of 1101 companies for ROE %. This puts China Tourism Group Duty Free in the upper half of its industry. The industry median ROE % is 6.54. China Tourism Group Duty Free's value of 16.56% is 153.2% above this benchmark. Historically, China Tourism Group Duty Free's own ROE % has ranged from 6.49 to 37.18 over the past decade. While the company's 10-year median is 17.11 vs. the industry median of 6.54, China Tourism Group Duty Free 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 Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.54, based on 1,101 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. China Tourism Group Duty Free's current ROE % of 16.56% is 153.2% 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 China Tourism Group Duty Free and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Tourism Group Duty Free's current ROE % is 16.56%, which is near median its own 10-year median of 17.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Tourism Group Duty Free stock overvalued right now?
Based on GuruFocus' analysis, China Tourism Group Duty Free (SHSE:601888) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥68.42, compared to a current price of ¥54.06 — trading 21% below its estimated fair value. The current ROE % is 16.56%, which is near median its 10-year median of 17.11 and 153.2% above the Retail - Cyclical industry median of 6.54. China Tourism Group Duty Free's overall GF Score™ is 81/100 with 5 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 China Tourism Group Duty Free (SHSE:601888), the current ROE % is 16.56% 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 China Tourism Group Duty Free (SHSE:601888) Overvalued in 2026?
Based on GuruFocus' analysis, China Tourism Group Duty Free stock appears to be undervalued.
The current stock price of ¥54.06 is trading 21% below its estimated GF Value™ of ¥68.42.
GuruFocus considers China Tourism Group Duty Free to be Modestly Undervalued.
Key valuation signals for SHSE:601888:
ROE %: 16.56% (near median its 10-year median of 17.11)
GF Value™: ¥68.42 vs. price of ¥54.06 (21% below fair value)
Industry Position: 153.2% above the Retail - Cyclical median (#531 of 1101)
No single metric tells the full story. See the SHSE:601888 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in 1984, China Tourism Group Duty Free is China's largest and the world's second-largest travel retailer in 2025 with revenue of CNY 54 billion. The company primarily operates duty-free stores at airports, border crossings, offshore, downtown, and on flights, cruises and ships, with about 200 stores spanning over 33 provinces in China, as well as overseas. The company also operates a duty-paid business. Its 2025 revenue mix was 73% duty-free sales and 27% duty-paid sales and others. CTG Duty Free is 50% owned by China Tourism Group, a state-owned enterprise that falls directly under the State-owned Assets Supervision and Administration Commission of the State Council.
81GF Score
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