Hotai Motor CoTPE:2207 +0.21%74 ROE % is 24.45% as of Dec. 2025, which is 7% above its 10-year median of 22.77. GuruFocus rates TPE:2207 with a GF Score™ of 74/100 and a GF Value™ of NT$681.83 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,308 Vehicles & Parts companies, Hotai Motor Co ranks better than 92.74% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hotai Motor Co's annualized net income for the quarter that ended in Dec. 2025 was NT$20,212 Mil. Hotai Motor Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was NT$82,656 Mil. Therefore, Hotai Motor Co's annualized ROE % for the quarter that ended in Dec. 2025 was 24.45%.
The historical rank and industry rank for Hotai Motor Co's ROE % or its related term are showing as below:
TPE:2207'
s ROE % Range Over the Past 10 Years
Min: -33.46 Med: 22.77 Max: 42.33
Current: 24.55
During the past 13 years, Hotai Motor Co's highest ROE % was 42.33%. The lowest was -33.46%. And the median was 22.77%.
TPE:2207's ROE % is ranked better than 92.74% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 6.62
vs TPE:2207: 24.55
Hotai Motor Co (TPE:2207) 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 (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.
Hotai Motor Co ROE % Related Terms
Hotai Motor Co ROE % Historical Data
* Premium members only.
The historical data trend for Hotai Motor 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.
For the Auto & Truck Dealerships subindustry, Hotai Motor 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.
Hotai Motor Co ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hotai Motor Co's ROE % distribution charts can be found below:
* The bar in red indicates where Hotai Motor 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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Hotai Motor Co (TPE:2207) has a ROE % of 24.45% 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 Hotai Motor Co and its competitors. This is near median its historical median of 22.77. According to the industry distribution chart, Hotai Motor Co ranks #95 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 7.3%.
Is Hotai Motor Co's ROE % too high?
Hotai Motor Co's current ROE % of 24.45% is near median its 10-year median of 22.77. The Vehicles & Parts industry median ROE % is 6.62. Hotai Motor Co's value of 24.45% is 269.3% above this industry median. Based on the distribution chart, Hotai Motor Co ranks #95 out of 1308 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Hotai Motor Co has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hotai Motor Co's ROE % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Hotai Motor Co ranks #95 out of 1308 companies for ROE %. This places Hotai Motor Co in the top 7% of its industry — outperforming the majority of peers. The industry median ROE % is 6.62. Hotai Motor Co's value of 24.45% is 269.3% above this benchmark. While the company's 10-year median is 22.77 vs. the industry median of 6.62, Hotai Motor 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 Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 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. Hotai Motor Co's current ROE % of 24.45% is 269.3% 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 Hotai Motor Co and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hotai Motor Co's current ROE % is 24.45%, which is near median its own 10-year median of 22.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hotai Motor Co stock overvalued right now?
Based on GuruFocus' analysis, Hotai Motor Co (TPE:2207) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$681.83, compared to a current price of NT$481.00 — trading 29.5% below its estimated fair value. The current ROE % is 24.45%, which is near median its 10-year median of 22.77 and 269.3% above the Vehicles & Parts industry median of 6.62. Hotai Motor Co's overall GF Score™ is 74/100 with 6 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 Hotai Motor Co (TPE:2207), the current ROE % is 24.45% 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 Hotai Motor Co (TPE:2207) Overvalued in 2026?
Based on GuruFocus' analysis, Hotai Motor Co stock appears to be undervalued.
The current stock price of NT$481.00 is trading 29.5% below its estimated GF Value™ of NT$681.83.
GuruFocus considers Hotai Motor Co to be Modestly Undervalued.
Key valuation signals for TPE:2207:
ROE %: 24.45% (near median its 10-year median of 22.77)
GF Value™: NT$681.83 vs. price of NT$481.00 (29.5% below fair value)
Industry Position: 269.3% above the Vehicles & Parts median (#95 of 1308)
No single metric tells the full story. See the TPE:2207 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hotai Motor Co Ltd is engaged in import, trading, selling and repairing of vehicles and their parts, as well as installment sales and leases of vehicles, and sales of used vehicles and business of property insurance. The segments of the company include the Distributor of Toyota and Hino products segments, Installment trading, Leasing, and other segments. It has operations across both Taiwan and mainland China, with the vast majority of revenue derived domestically.
74GF Score
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