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Hunan Mendale Hometextile CoSZSE:002397 63 ROE % is 5.87% as of Jun. 2026, which is 117% above its 10-year median of 2.70. GuruFocus rates SZSE:002397 with a GF Score™ of 63/100 and a GF Value™ of ¥3.13 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,024 Manufacturing - Apparel & Accessories companies, Hunan Mendale Hometextile Co ranks better than 51.07% on this metric.
Hunan Mendale Hometextile Co (SZSE:002397) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Hunan Mendale Hometextile Co ROE % Related Terms
Hunan Mendale Hometextile Co 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.
Hunan Mendale Hometextile Co ROE % Competitor Comparison
For the Textile Manufacturing subindustry, Hunan Mendale Hometextile 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.
Hunan Mendale Hometextile Co ROE % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Hunan Mendale Hometextile Co's ROE % distribution charts can be found below:
* The bar in red indicates where Hunan Mendale Hometextile 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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Hunan Mendale Hometextile Co (SZSE:002397) has a ROE % of 5.87% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Hunan Mendale Hometextile Co and its competitors. This is 117% above median its historical median of 2.70. According to the industry distribution chart, Hunan Mendale Hometextile Co ranks #501 out of 1024 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 48.9%.
Is Hunan Mendale Hometextile Co's ROE % too high?
Hunan Mendale Hometextile Co's current ROE % of 5.87% is 117% above median its 10-year median of 2.70. The Manufacturing - Apparel & Accessories industry median ROE % is 4.35. Hunan Mendale Hometextile Co's value of 5.87% is 34.9% above this industry median. Based on the distribution chart, Hunan Mendale Hometextile Co ranks #501 out of 1024 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Hunan Mendale Hometextile Co has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hunan Mendale Hometextile Co's ROE % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Hunan Mendale Hometextile Co ranks #501 out of 1024 companies for ROE %. This puts Hunan Mendale Hometextile Co in the upper half of its industry. The industry median ROE % is 4.35. Hunan Mendale Hometextile Co's value of 5.87% is 34.9% above this benchmark. While the company's 10-year median is 2.70 vs. the industry median of 4.35, Hunan Mendale Hometextile 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 Manufacturing - Apparel & Accessories company?
The median ROE % among Manufacturing - Apparel & Accessories companies is 4.35, based on 1,024 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. Hunan Mendale Hometextile Co's current ROE % of 5.87% is 34.9% 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 Hunan Mendale Hometextile Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROE % is 4.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunan Mendale Hometextile Co's current ROE % is 5.87%, which is 117% above median its own 10-year median of 2.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunan Mendale Hometextile Co stock overvalued right now?
Based on GuruFocus' analysis, Hunan Mendale Hometextile Co (SZSE:002397) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥3.13, compared to a current price of ¥3.55 — trading 13.4% above its estimated fair value. The current ROE % is 5.87%, which is 117% above median its 10-year median of 2.70 and 34.9% above the Manufacturing - Apparel & Accessories industry median of 4.35. Hunan Mendale Hometextile Co's overall GF Score™ is 63/100 with 3 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 Hunan Mendale Hometextile Co (SZSE:002397), the current ROE % is 5.87% as of Jun. 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 Hunan Mendale Hometextile Co (SZSE:002397) Overvalued in 2026?
Based on GuruFocus' analysis, Hunan Mendale Hometextile Co stock appears to be overvalued.
The current stock price of ¥3.55 is trading 13.4% above its estimated GF Value™ of ¥3.13.
GuruFocus considers Hunan Mendale Hometextile Co to be Modestly Overvalued.
Key valuation signals for SZSE:002397:
ROE %: 5.87% (117% above median its 10-year median of 2.70)
GF Value™: ¥3.13 vs. price of ¥3.55 (13.4% above fair value)
Industry Position: 34.9% above the Manufacturing - Apparel & Accessories median (#501 of 1024)
No single metric tells the full story. See the SZSE:002397 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hunan Mendale Hometextile Co Ltd is a China-based company. It is principally engaged in the design, manufacture, and sales of home textile products, as well as the provision of home life services.
63GF Score
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