Test ResearchTPE:3030 -4.55%92 ROE % is 29.73% as of Dec. 2025, which is 49% above its 10-year median of 19.90. GuruFocus rates TPE:3030 with a GF Score™ of 92/100 and a GF Value™ of NT$175.88 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,423 Hardware companies, Test Research ranks better than 95.25% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Test Research's annualized net income for the quarter that ended in Dec. 2025 was NT$2,745 Mil. Test Research's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was NT$9,231 Mil. Therefore, Test Research's annualized ROE % for the quarter that ended in Dec. 2025 was 29.73%.
The historical rank and industry rank for Test Research's ROE % or its related term are showing as below:
TPE:3030'
s ROE % Range Over the Past 10 Years
Min: 7.94 Med: 19.9 Max: 28.76
Current: 28.34
During the past 13 years, Test Research's highest ROE % was 28.76%. The lowest was 7.94%. And the median was 19.90%.
TPE:3030's ROE % is ranked better than 95.25% of 2423
companies
in the Hardware industry
Industry Median: 4.61
vs TPE:3030: 28.34
Test Research (TPE:3030) 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.
Test Research ROE % Related Terms
Test Research ROE % Historical Data
* Premium members only.
The historical data trend for Test Research'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 Scientific & Technical Instruments subindustry, Test Research'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.
Test Research ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Test Research's ROE % distribution charts can be found below:
* The bar in red indicates where Test Research'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.
Test Research (TPE:3030) has a ROE % of 29.73% 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 Test Research and its competitors. This is 49% above median its historical median of 19.90. Over the past decade, Test Research's ROE % has ranged from 7.94 to 28.76. According to the industry distribution chart, Test Research ranks #115 out of 2423 companies in the Hardware industry, placing it in the top 4.7%.
Is Test Research's ROE % too high?
Test Research's current ROE % of 29.73% is 49% above median its 10-year median of 19.90. Over the past 10 years, this metric has ranged from a low of 7.94 to a high of 28.76. The Hardware industry median ROE % is 4.61. Test Research's value of 29.73% is 544.9% above this industry median. Based on the distribution chart, Test Research ranks #115 out of 2423 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Test Research has a GF Score™ of 92/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Test Research's ROE % compare to COHR and KEYS?
According to the Hardware industry distribution chart, Test Research ranks #115 out of 2423 companies for ROE %. This places Test Research in the top 5% of its industry — outperforming the majority of peers. The industry median ROE % is 4.61. Test Research's value of 29.73% is 544.9% above this benchmark. Historically, Test Research's own ROE % has ranged from 7.94 to 28.76 over the past decade. While the company's 10-year median is 19.90 vs. the industry median of 4.61, Test Research 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 Hardware company?
The median ROE % among Hardware companies is 4.61, based on 2,423 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. Test Research's current ROE % of 29.73% is 544.9% 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 Test Research and its competitors. For the Hardware industry, the median ROE % is 4.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Test Research's current ROE % is 29.73%, which is 49% above median its own 10-year median of 19.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Test Research stock overvalued right now?
Based on GuruFocus' analysis, Test Research (TPE:3030) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$175.88, compared to a current price of NT$315.00 — trading 79.1% above its estimated fair value. The current ROE % is 29.73%, which is 49% above median its 10-year median of 19.90 and 544.9% above the Hardware industry median of 4.61. Test Research's overall GF Score™ is 92/100 with 1 warning sign 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 Test Research (TPE:3030), the current ROE % is 29.73% 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 Test Research (TPE:3030) Overvalued in 2026?
Based on GuruFocus' analysis, Test Research stock appears to be overvalued.
The current stock price of NT$315.00 is trading 79.1% above its estimated GF Value™ of NT$175.88.
GuruFocus considers Test Research to be Significantly Overvalued.
Key valuation signals for TPE:3030:
ROE %: 29.73% (49% above median its 10-year median of 19.90)
GF Value™: NT$175.88 vs. price of NT$315.00 (79.1% above fair value)
Industry Position: 544.9% above the Hardware median (#115 of 2423)
No single metric tells the full story. See the TPE:3030 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Test Research Inc designs testing equipment for industrial applications. The firm focuses on designing, assembling, manufacturing, selling, repairing, and maintaining automated inspection and testing equipment. The firm receives a majority of its revenue from Asia and the rest from America, Europe, and other regions.
92GF Score
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