Scandinavian Tobacco Group ASSTBGY +2.00%68 ROE % is 2.00% as of Mar. 2026, which is 76% below its 10-year median of 8.19. GuruFocus rates STBGY with a GF Score™ of 68/100 and a GF Value™ of $8.36 (Significantly Undervalued). The stock has 8 warning signs investors should review. Among 45 Tobacco Products companies, Scandinavian Tobacco Group AS ranks worse than 66.67% on this metric.
The historical rank and industry rank for Scandinavian Tobacco Group AS's ROE % or its related term are showing as below:
STBGY'
s ROE % Range Over the Past 10 Years
Min: 7.46 Med: 8.19 Max: 16.13
Current: 7.71
During the past 13 years, Scandinavian Tobacco Group AS's highest ROE % was 16.13%. The lowest was 7.46%. And the median was 8.19%.
STBGY's ROE % is ranked worse than 66.67% of 45
companies
in the Tobacco Products industry
Industry Median: 16.13
vs STBGY: 7.71
Scandinavian Tobacco Group AS (OTCPK:STBGY) 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.
Scandinavian Tobacco Group AS ROE % Related Terms
Scandinavian Tobacco Group AS 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 Tobacco subindustry, Scandinavian Tobacco Group AS'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.
Scandinavian Tobacco Group AS ROE % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Scandinavian Tobacco Group AS's ROE % distribution charts can be found below:
* The bar in red indicates where Scandinavian Tobacco Group AS'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.
Scandinavian Tobacco Group AS (STBGY) has a ROE % of 2.00% 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 Scandinavian Tobacco Group AS and its competitors. This is 76% below median its historical median of 8.19. Over the past decade, Scandinavian Tobacco Group AS's ROE % has ranged from 7.46 to 16.13. According to the industry distribution chart, Scandinavian Tobacco Group AS ranks #30 out of 45 companies in the Tobacco Products industry, placing it in the top 66.7%.
Is Scandinavian Tobacco Group AS's ROE % too high?
Scandinavian Tobacco Group AS's current ROE % of 2.00% is 76% below median its 10-year median of 8.19. Over the past 10 years, this metric has ranged from a low of 7.46 to a high of 16.13. The Tobacco Products industry median ROE % is 16.13. Scandinavian Tobacco Group AS's value of 2.00% is 87.6% below this industry median. Based on the distribution chart, Scandinavian Tobacco Group AS ranks #30 out of 45 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, Scandinavian Tobacco Group AS has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Scandinavian Tobacco Group AS's ROE % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Scandinavian Tobacco Group AS ranks #30 out of 45 companies for ROE %. This places Scandinavian Tobacco Group AS in the lower half of its industry. The industry median ROE % is 16.13. Scandinavian Tobacco Group AS's value of 2.00% is 87.6% below this benchmark. Historically, Scandinavian Tobacco Group AS's own ROE % has ranged from 7.46 to 16.13 over the past decade. While the company's 10-year median is 8.19 vs. the industry median of 16.13, Scandinavian Tobacco Group AS 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 Tobacco Products company?
The median ROE % among Tobacco Products companies is 16.13, based on 45 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. Scandinavian Tobacco Group AS's current ROE % of 2.00% is 87.6% 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 Scandinavian Tobacco Group AS and its competitors. For the Tobacco Products industry, the median ROE % is 16.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Scandinavian Tobacco Group AS's current ROE % is 2.00%, which is 76% below median its own 10-year median of 8.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Scandinavian Tobacco Group AS stock overvalued right now?
Based on GuruFocus' analysis, Scandinavian Tobacco Group AS (STBGY) is currently considered Significantly Undervalued. The stock's GF Value™ is $8.36, compared to a current price of $5.11 — trading 38.9% below its estimated fair value. The current ROE % is 2.00%, which is 76% below median its 10-year median of 8.19 and 87.6% below the Tobacco Products industry median of 16.13. Scandinavian Tobacco Group AS's overall GF Score™ is 68/100 with 8 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 Scandinavian Tobacco Group AS (STBGY), the current ROE % is 2.00% 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 Scandinavian Tobacco Group AS (STBGY) Overvalued in 2026?
Based on GuruFocus' analysis, Scandinavian Tobacco Group AS stock appears to be undervalued.
The current stock price of $5.11 is trading 38.9% below its estimated GF Value™ of $8.36.
GuruFocus considers Scandinavian Tobacco Group AS to be Significantly Undervalued.
Key valuation signals for STBGY:
ROE %: 2.00% (76% below median its 10-year median of 8.19)
GF Value™: $8.36 vs. price of $5.11 (38.9% below fair value)
Industry Position: 87.6% below the Tobacco Products median (#30 of 45)
No single metric tells the full story. See the STBGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Scandinavian Tobacco Group AS Business Description
Scandinavian Tobacco Group AS offers cigars, pipe tobacco, and accessories in North America, Europe, and Australia. It operates in three segments: North America online and retail, which includes direct to consumer sales of all product categories sold via the online, catalogue and retail channel in North America. North America branded and the Rest of the World, which provides its products to wholesalers and distributors; Europe Branded comprises sale of all product categories to wholesalers, distributors and direct to retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, the UK, and Ireland.
68GF Score
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