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Lai Sun Development Co (STU:LAY3) 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 (Jan. 2026) net income data. The Revenue data used here is two times the semi-annual (Jan. 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.
Lai Sun Development Co ROE % Competitor Comparison
For the Real Estate - Diversified subindustry, Lai Sun Development 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.
Lai Sun Development Co ROE % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Lai Sun Development Co's ROE % distribution charts can be found below:
* The bar in red indicates where Lai Sun Development 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 two times the semi-annual (Jan. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Lai Sun Development Co (STU:LAY3) has a ROE % of -10.27% as of Jan. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Lai Sun Development Co and its competitors. According to the industry distribution chart, Lai Sun Development Co ranks #1542 out of 1736 companies in the Real Estate industry, placing it in the top 88.8%.
Is Lai Sun Development Co's ROE % too high?
Lai Sun Development Co's current ROE % is -10.27%. Based on the distribution chart, Lai Sun Development Co ranks #1542 out of 1736 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Lai Sun Development Co has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Lai Sun Development Co's ROE % compare to competitors?
According to the Real Estate industry distribution chart, Lai Sun Development Co ranks #1542 out of 1736 companies for ROE %. This places Lai Sun Development Co in the lower half of its industry. The industry median ROE % is 4.18. 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 Real Estate company?
The median ROE % among Real Estate companies is 4.18, based on 1,736 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. 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 Lai Sun Development Co and its competitors. For the Real Estate industry, the median ROE % is 4.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lai Sun Development Co's current ROE % is -10.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lai Sun Development Co stock overvalued right now?
Lai Sun Development Co (STU:LAY3) has a current ROE % of -10.27%. The stock's GF Value™ is €0.04, compared to a current price of €0.06 — trading 56.3% above its estimated fair value. The current ROE % is -10.27%. Lai Sun Development Co's overall GF Score™ is 34/100 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 Lai Sun Development Co (STU:LAY3), the current ROE % is -10.27% as of Jan. 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 Lai Sun Development Co (STU:LAY3) Overvalued in 2026?
Based on GuruFocus' analysis, Lai Sun Development Co stock appears to be overvalued.
The current stock price of €0.06 is trading 56.3% above its estimated GF Value™ of €0.04.
Key valuation signals for STU:LAY3:
ROE %: -10.27%
GF Value™: €0.04 vs. price of €0.06 (56.3% above fair value)
No single metric tells the full story. See the STU:LAY3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lai Sun Development Co Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in various reportable operating segments such as; property development and sales; property investment; hotel operation; restaurant operation; media and entertainment; film and TV programs; cinema operation; theme park operation, and others. The property development and sales segment which derives a majority of its revenue, is engaged in property development and the sale of properties. Geographically, it derives a majority of its revenue from Mainland China and Macau, and the rest from Hong Kong, the United Kingdom, Vietnam, and other regions.
34GF Score
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