Hsin Kuang Steel Co (TPE:2031) ROE %: 6.87% (As of Dec. 2025) — 50% Below Median


TPE:2031 Hsin Kuang Steel Co Ltd TPE:2031
80 GF Score
Price NT$38.30
GF Value NT$53.64
Valuation Modestly Undervalued
! 8 Warning Signs
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What is Hsin Kuang Steel Co ROE %?

Hsin Kuang Steel Co TPE:2031 -0.65% 80 ROE % is 6.87% as of Dec. 2025, which is 50% below its 10-year median of 13.82. GuruFocus rates TPE:2031 with a GF Score™ of 80/100 and a GF Value™ of NT$53.64 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 620 Steel companies, Hsin Kuang Steel Co ranks better than 74.03% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hsin Kuang Steel Co's annualized net income for the quarter that ended in Dec. 2025 was NT$804 Mil. Hsin Kuang Steel Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was NT$11,705 Mil. Therefore, Hsin Kuang Steel Co's annualized ROE % for the quarter that ended in Dec. 2025 was 6.87%.

The historical rank and industry rank for Hsin Kuang Steel Co's ROE % or its related term are showing as below:

TPE:2031' s ROE % Range Over the Past 10 Years
Min: 1.86   Med: 13.82   Max: 29.31
Current: 9.23

During the past 13 years, Hsin Kuang Steel Co's highest ROE % was 29.31%. The lowest was 1.86%. And the median was 13.82%.

TPE:2031's ROE % is ranked better than
74.03% of 620 companies
in the Steel industry
Industry Median: 3.68 vs TPE:2031: 9.23

Hsin Kuang Steel Co  (TPE:2031) 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
=803.584/11705.049
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(803.584 / 13332.264)*(13332.264 / 28951.39)*(28951.39 / 11705.049)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.03 %*0.4605*2.4734
=ROA %*Equity Multiplier
=2.78 %*2.4734
=6.87 %

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
=803.584/11705.049
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (803.584 / 1003.468) * (1003.468 / 983.396) * (983.396 / 13332.264) * (13332.264 / 28951.39) * (28951.39 / 11705.049)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8008 * 1.0204 * 7.38 % * 0.4605 * 2.4734
=6.87 %

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.


Hsin Kuang Steel Co ROE % Related Terms


Hsin Kuang Steel Co ROE % Historical Data

* Premium members only.

The historical data trend for Hsin Kuang Steel 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.

Hsin Kuang Steel Co ROE % Chart

Hsin Kuang Steel 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 29.31 3.89 15.99 12.56 9.05

Hsin Kuang Steel 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 -2.72 -12.29 36.02 6.55 6.87

TPE:2031 vs NUE, STLD, RS: ROE % Comparison

For the Steel subindustry, Hsin Kuang Steel 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.


Hsin Kuang Steel Co ROE % vs Steel Industry

For the Steel industry and Basic Materials sector, Hsin Kuang Steel Co's ROE % distribution charts can be found below:

* The bar in red indicates where Hsin Kuang Steel Co's ROE % falls into.


TPE:2031
80GF Score
Hsin Kuang Steel Co Ltd TPE:2031
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hsin Kuang Steel Co ROE % Calculation

Hsin Kuang Steel 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 )
=1058.251/( (11649.571+11737.45)/ 2 )
=1058.251/11693.5105
=9.05 %

Hsin Kuang Steel 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 )
=803.584/( (11672.648+11737.45)/ 2 )
=803.584/11705.049
=6.87 %

* 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 6.87% mean?
Hsin Kuang Steel Co (TPE:2031) has a ROE % of 6.87% 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 Hsin Kuang Steel Co and its competitors. This is 50% below median its historical median of 13.82. Over the past decade, Hsin Kuang Steel Co's ROE % has ranged from 1.86 to 29.31. According to the industry distribution chart, Hsin Kuang Steel Co ranks #161 out of 620 companies in the Steel industry, placing it in the top 26%.
Is Hsin Kuang Steel Co's ROE % too high?
Hsin Kuang Steel Co's current ROE % of 6.87% is 50% below median its 10-year median of 13.82. Over the past 10 years, this metric has ranged from a low of 1.86 to a high of 29.31. The Steel industry median ROE % is 3.68. Hsin Kuang Steel Co's value of 6.87% is 86.7% above this industry median. Based on the distribution chart, Hsin Kuang Steel Co ranks #161 out of 620 companies in the Steel industry, which is above the industry midpoint. Overall, Hsin Kuang Steel Co has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hsin Kuang Steel Co's ROE % compare to NUE and STLD?
According to the Steel industry distribution chart, Hsin Kuang Steel Co ranks #161 out of 620 companies for ROE %. This puts Hsin Kuang Steel Co in the upper half of its industry. The industry median ROE % is 3.68. Hsin Kuang Steel Co's value of 6.87% is 86.7% above this benchmark. Historically, Hsin Kuang Steel Co's own ROE % has ranged from 1.86 to 29.31 over the past decade. While the company's 10-year median is 13.82 vs. the industry median of 3.68, Hsin Kuang Steel 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 Steel company?
The median ROE % among Steel companies is 3.68, based on 620 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. Hsin Kuang Steel Co's current ROE % of 6.87% is 86.7% 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 Hsin Kuang Steel Co and its competitors. For the Steel industry, the median ROE % is 3.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hsin Kuang Steel Co's current ROE % is 6.87%, which is 50% below median its own 10-year median of 13.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hsin Kuang Steel Co stock overvalued right now?
Based on GuruFocus' analysis, Hsin Kuang Steel Co (TPE:2031) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$53.64, compared to a current price of NT$38.30 — trading 28.6% below its estimated fair value. The current ROE % is 6.87%, which is 50% below median its 10-year median of 13.82 and 86.7% above the Steel industry median of 3.68. Hsin Kuang Steel Co's overall GF Score™ is 80/100 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 Hsin Kuang Steel Co (TPE:2031), the current ROE % is 6.87% 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 Hsin Kuang Steel Co (TPE:2031) Overvalued in 2026?

Based on GuruFocus' analysis, Hsin Kuang Steel Co stock appears to be undervalued. The current stock price of NT$38.30 is trading 28.6% below its estimated GF Value™ of NT$53.64. GuruFocus considers Hsin Kuang Steel Co to be Modestly Undervalued.

Key valuation signals for TPE:2031:

  • ROE %: 6.87% (50% below median its 10-year median of 13.82)
  • GF Value™: NT$53.64 vs. price of NT$38.30 (28.6% below fair value)
  • GF Score™: 80/100 with 8 warning signs
  • Industry Position: 86.7% above the Steel median (#161 of 620)

No single metric tells the full story. See the TPE:2031 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hsin Kuang Steel Co Business Description

Address 97 Chongxin Road, Section 4, 25th Floor, Sanchong District, New Taipei, TWN
Hsin Kuang Steel Co Ltd manufactures and sells steel products. The business activities of the group include cutting, stamping, and the sale of steel products, including steel coils, steel plates, stainless steel, alloy steel, special steel, and SuperDyma. Geographically, its business activities are carried out across Taiwan. The company operates in four segments, which include Steel - Direct Sales, Steel - Manufacturing Sales, Construction Projects, and Leases. The majority of its revenue is generated from the Steel-Direct Sales Segment. Geographically, operates in Taiwan.
80GF Score

Get the complete analysis for TPE:2031

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

NT$38.30
Price
NT$53.64
GF Value