The historical rank and industry rank for Xiamen Leading Optics Co's ROE % or its related term are showing as below:
SHSE:605118'
s ROE % Range Over the Past 10 Years
Min: 10.98 Med: 17.21 Max: 69.07
Current: 17.74
During the past 10 years, Xiamen Leading Optics Co's highest ROE % was 69.07%. The lowest was 10.98%. And the median was 17.21%.
SHSE:605118's ROE % is ranked better than 87.59% of 2425
companies
in the Hardware industry
Industry Median: 4.66
vs SHSE:605118: 17.74
Xiamen Leading Optics Co (SHSE:605118) 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 Electronic Components subindustry, Xiamen Leading Optics Co'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.
Xiamen Leading Optics Co ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Xiamen Leading Optics Co's ROE % distribution charts can be found below:
* The bar in red indicates where Xiamen Leading Optics Co'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.
Xiamen Leading Optics Co (SHSE:605118) has a ROE % of 17.87% 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 Xiamen Leading Optics Co and its competitors. This is near median its historical median of 17.21. Over the past decade, Xiamen Leading Optics Co's ROE % has ranged from 10.98 to 69.07. According to the industry distribution chart, Xiamen Leading Optics Co ranks #301 out of 2425 companies in the Hardware industry, placing it in the top 12.4%.
Is Xiamen Leading Optics Co's ROE % too high?
Xiamen Leading Optics Co's current ROE % of 17.87% is near median its 10-year median of 17.21. Over the past 10 years, this metric has ranged from a low of 10.98 to a high of 69.07. The Hardware industry median ROE % is 4.66. Xiamen Leading Optics Co's value of 17.87% is 283.5% above this industry median. Based on the distribution chart, Xiamen Leading Optics Co ranks #301 out of 2425 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Xiamen Leading Optics Co has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Xiamen Leading Optics Co's ROE % compare to APH and GLW?
According to the Hardware industry distribution chart, Xiamen Leading Optics Co ranks #301 out of 2425 companies for ROE %. This places Xiamen Leading Optics Co in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 4.66. Xiamen Leading Optics Co's value of 17.87% is 283.5% above this benchmark. Historically, Xiamen Leading Optics Co's own ROE % has ranged from 10.98 to 69.07 over the past decade. While the company's 10-year median is 17.21 vs. the industry median of 4.66, Xiamen Leading Optics Co 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 Hardware company?
The median ROE % among Hardware companies is 4.66, based on 2,425 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. Xiamen Leading Optics Co's current ROE % of 17.87% is 283.5% 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 Xiamen Leading Optics Co and its competitors. For the Hardware industry, the median ROE % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xiamen Leading Optics Co's current ROE % is 17.87%, which is near median its own 10-year median of 17.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xiamen Leading Optics Co stock overvalued right now?
Based on GuruFocus' analysis, Xiamen Leading Optics Co (SHSE:605118) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥27.93, compared to a current price of ¥36.16 — trading 29.5% above its estimated fair value. The current ROE % is 17.87%, which is near median its 10-year median of 17.21 and 283.5% above the Hardware industry median of 4.66. Xiamen Leading Optics Co's overall GF Score™ is 88/100 with 4 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 Xiamen Leading Optics Co (SHSE:605118), the current ROE % is 17.87% 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 Xiamen Leading Optics Co (SHSE:605118) Overvalued in 2026?
Based on GuruFocus' analysis, Xiamen Leading Optics Co stock appears to be overvalued.
The current stock price of ¥36.16 is trading 29.5% above its estimated GF Value™ of ¥27.93.
GuruFocus considers Xiamen Leading Optics Co to be Modestly Overvalued.
Key valuation signals for SHSE:605118:
ROE %: 17.87% (near median its 10-year median of 17.21)
GF Value™: ¥27.93 vs. price of ¥36.16 (29.5% above fair value)
Industry Position: 283.5% above the Hardware median (#301 of 2425)
No single metric tells the full story. See the SHSE:605118 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xiamen Leading Optics Co Ltd is engaged in design, production and sales of optical lenses. The company's products include Surveillance Lens; Automotives Lens; Machine Vision Lens; ITS Lens; Low Distortion Lens; Consumer Imaging; and Panoramic Lens. Its products are used in multiple fields of application including security surveillance, medical and biological studies and researches, intelligent traffic systems, video conference, intelligent home security, sports camera and many more.
88GF Score
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