Longchen Paper & Packaging Co (TPE:1909) ROE %: 3.95% (As of Dec. 2025) — 25% Above Median


TPE:1909 Longchen Paper & Packaging Co Ltd TPE:1909
63 GF Score
Price NT$9.47
GF Value NT$12.33
Valuation Modestly Undervalued
! 7 Warning Signs
View Full Analysis

What is Longchen Paper & Packaging Co ROE %?

Longchen Paper & Packaging Co TPE:1909 -0.94% 63 ROE % is 3.95% as of Dec. 2025, which is 25% above its 10-year median of 3.15. GuruFocus rates TPE:1909 with a GF Score™ of 63/100 and a GF Value™ of NT$12.33 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 280 Forest Products companies, Longchen Paper & Packaging Co ranks worse than 68.93% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Longchen Paper & Packaging Co's annualized net income for the quarter that ended in Dec. 2025 was NT$789 Mil. Longchen Paper & Packaging Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was NT$19,993 Mil. Therefore, Longchen Paper & Packaging Co's annualized ROE % for the quarter that ended in Dec. 2025 was 3.95%.

The historical rank and industry rank for Longchen Paper & Packaging Co's ROE % or its related term are showing as below:

TPE:1909' s ROE % Range Over the Past 10 Years
Min: -4.43   Med: 3.15   Max: 16.9
Current: -2.54

During the past 13 years, Longchen Paper & Packaging Co's highest ROE % was 16.90%. The lowest was -4.43%. And the median was 3.15%.

TPE:1909's ROE % is ranked worse than
68.93% of 280 companies
in the Forest Products industry
Industry Median: 2.07 vs TPE:1909: -2.54

Longchen Paper & Packaging Co  (TPE:1909) 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:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=789.416/19992.957
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(789.416 / 48125.088)*(48125.088 / 68135.4265)*(68135.4265 / 19992.957)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.64 %*0.7063*3.408
=ROA %*Equity Multiplier
=1.16 %*3.408
=3.95 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=789.416/19992.957
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (789.416 / 993.02) * (993.02 / 1363.232) * (1363.232 / 48125.088) * (48125.088 / 68135.4265) * (68135.4265 / 19992.957)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.795 * 0.7284 * 2.83 % * 0.7063 * 3.408
=3.95 %

Note: The net income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) 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.


Longchen Paper & Packaging Co ROE % Related Terms


Longchen Paper & Packaging Co ROE % Historical Data

* Premium members only.

The historical data trend for Longchen Paper & Packaging Co's ROE % can be seen below:

* 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.

Longchen Paper & Packaging Co ROE % Chart

Longchen Paper & Packaging Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.94 -3.54 -4.43 -1.72 -2.48

Longchen Paper & Packaging Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.46 -2.58 -8.56 -2.97 3.95

Longchen Paper & Packaging Co ROE % Competitor Comparison

For the Paper & Paper Products subindustry, Longchen Paper & Packaging 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.


Longchen Paper & Packaging Co ROE % vs Forest Products Industry

For the Forest Products industry and Basic Materials sector, Longchen Paper & Packaging Co's ROE % distribution charts can be found below:

* The bar in red indicates where Longchen Paper & Packaging Co's ROE % falls into.


TPE:1909
63GF Score
Longchen Paper & Packaging Co Ltd TPE:1909
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Longchen Paper & Packaging Co ROE % Calculation

Longchen Paper & Packaging Co's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=-516.648/( (21401.721+20294.382)/ 2 )
=-516.648/20848.0515
=-2.48 %

Longchen Paper & Packaging Co's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=789.416/( (19691.532+20294.382)/ 2 )
=789.416/19992.957
=3.95 %

* 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 (Dec. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 3.95% mean?
Longchen Paper & Packaging Co (TPE:1909) has a ROE % of 3.95% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Longchen Paper & Packaging Co and its competitors. This is 25% above median its historical median of 3.15. According to the industry distribution chart, Longchen Paper & Packaging Co ranks #193 out of 280 companies in the Forest Products industry, placing it in the top 68.9%.
Is Longchen Paper & Packaging Co's ROE % too high?
Longchen Paper & Packaging Co's current ROE % of 3.95% is 25% above median its 10-year median of 3.15. The Forest Products industry median ROE % is 2.07. Longchen Paper & Packaging Co's value of 3.95% is 90.8% above this industry median. Based on the distribution chart, Longchen Paper & Packaging Co ranks #193 out of 280 companies in the Forest Products industry, which is below the industry midpoint. Overall, Longchen Paper & Packaging Co has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Longchen Paper & Packaging Co's ROE % compare to competitors?
According to the Forest Products industry distribution chart, Longchen Paper & Packaging Co ranks #193 out of 280 companies for ROE %. This places Longchen Paper & Packaging Co in the lower half of its industry. The industry median ROE % is 2.07. Longchen Paper & Packaging Co's value of 3.95% is 90.8% above this benchmark. While the company's 10-year median is 3.15 vs. the industry median of 2.07, Longchen Paper & Packaging 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 Forest Products company?
The median ROE % among Forest Products companies is 2.07, based on 280 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. Longchen Paper & Packaging Co's current ROE % of 3.95% is 90.8% 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 Longchen Paper & Packaging Co and its competitors. For the Forest Products industry, the median ROE % is 2.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Longchen Paper & Packaging Co's current ROE % is 3.95%, which is 25% above median its own 10-year median of 3.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Longchen Paper & Packaging Co stock overvalued right now?
Based on GuruFocus' analysis, Longchen Paper & Packaging Co (TPE:1909) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$12.33, compared to a current price of NT$9.47 — trading 23.2% below its estimated fair value. The current ROE % is 3.95%, which is 25% above median its 10-year median of 3.15 and 90.8% above the Forest Products industry median of 2.07. Longchen Paper & Packaging Co's overall GF Score™ is 63/100 with 7 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 Longchen Paper & Packaging Co (TPE:1909), the current ROE % is 3.95% as of Dec. 2025. 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 Longchen Paper & Packaging Co (TPE:1909) Overvalued in 2026?

Based on GuruFocus' analysis, Longchen Paper & Packaging Co stock appears to be undervalued. The current stock price of NT$9.47 is trading 23.2% below its estimated GF Value™ of NT$12.33. GuruFocus considers Longchen Paper & Packaging Co to be Modestly Undervalued.

Key valuation signals for TPE:1909:

  • ROE %: 3.95% (25% above median its 10-year median of 3.15)
  • GF Value™: NT$12.33 vs. price of NT$9.47 (23.2% below fair value)
  • GF Score™: 63/100 with 7 warning signs
  • Industry Position: 90.8% above the Forest Products median (#193 of 280)

No single metric tells the full story. See the TPE:1909 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Longchen Paper & Packaging Co Business Description

Address No. 1-1, Guangxing Lane, Guangxing Village, Erlin Township, Zhanghua, TWN
Longchen Paper & Packaging Co Ltd is engaged in manufacturing, processing, and trading paper raw materials; manufacturing, printing, processing and trading of corrugated containers; and recycling/renewal of energy and resources, including turnkey design, trial-run and operation of cogeneration and incinerator systems. Its segments include Containerboard: manufacturing and sales of Containerboard; Corrugated container: manufacturing and sale of paper machines; Wastepaper: procurement and sale of wastepaper; and Others: public wastewater treatment and general administration in the Group. It derives majority of the revenue from Containerboard segment.
63GF Score

Get the complete analysis for TPE:1909

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$9.47
Price
NT$12.33
GF Value