Khgears InternationalTPE:4571 -0.29%95 ROE % is 15.63% as of Dec. 2025, which is 5% below its 10-year median of 16.45. GuruFocus rates TPE:4571 with a GF Score™ of 95/100 and a GF Value™ of NT$156.61 (Fairly Valued). The stock has 1 warning sign investors should review. Among 3,009 Industrial Products companies, Khgears International ranks better than 85.64% on this metric.
The historical rank and industry rank for Khgears International's ROE % or its related term are showing as below:
TPE:4571'
s ROE % Range Over the Past 10 Years
Min: 10.5 Med: 16.45 Max: 21.51
Current: 16.88
During the past 10 years, Khgears International's highest ROE % was 21.51%. The lowest was 10.50%. And the median was 16.45%.
TPE:4571's ROE % is ranked better than 85.64% of 3009
companies
in the Industrial Products industry
Industry Median: 5.91
vs TPE:4571: 16.88
Khgears International (TPE:4571) 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.
* 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 Tools & Accessories subindustry, Khgears International'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.
Khgears International ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Khgears International's ROE % distribution charts can be found below:
* The bar in red indicates where Khgears International'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.
Khgears International (TPE:4571) has a ROE % of 15.63% 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 Khgears International and its competitors. This is near median its historical median of 16.45. Over the past decade, Khgears International's ROE % has ranged from 10.50 to 21.51. According to the industry distribution chart, Khgears International ranks #432 out of 3009 companies in the Industrial Products industry, placing it in the top 14.4%.
Is Khgears International's ROE % too high?
Khgears International's current ROE % of 15.63% is near median its 10-year median of 16.45. Over the past 10 years, this metric has ranged from a low of 10.50 to a high of 21.51. The Industrial Products industry median ROE % is 5.91. Khgears International's value of 15.63% is 164.5% above this industry median. Based on the distribution chart, Khgears International ranks #432 out of 3009 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Khgears International has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Khgears International's ROE % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Khgears International ranks #432 out of 3009 companies for ROE %. This places Khgears International in the top 14% of its industry — outperforming the majority of peers. The industry median ROE % is 5.91. Khgears International's value of 15.63% is 164.5% above this benchmark. Historically, Khgears International's own ROE % has ranged from 10.50 to 21.51 over the past decade. While the company's 10-year median is 16.45 vs. the industry median of 5.91, Khgears International 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 an Industrial Products company?
The median ROE % among Industrial Products companies is 5.91, based on 3,009 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. Khgears International's current ROE % of 15.63% is 164.5% 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 Khgears International and its competitors. For the Industrial Products industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Khgears International's current ROE % is 15.63%, which is near median its own 10-year median of 16.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Khgears International stock overvalued right now?
Based on GuruFocus' analysis, Khgears International (TPE:4571) is currently considered Fairly Valued. The stock's GF Value™ is NT$156.61, compared to a current price of NT$170.50 — trading 8.9% above its estimated fair value. The current ROE % is 15.63%, which is near median its 10-year median of 16.45 and 164.5% above the Industrial Products industry median of 5.91. Khgears International's overall GF Score™ is 95/100 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 Khgears International (TPE:4571), the current ROE % is 15.63% 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 Khgears International (TPE:4571) Overvalued in 2026?
Based on GuruFocus' analysis, Khgears International stock appears to be overvalued.
The current stock price of NT$170.50 is trading 8.9% above its estimated GF Value™ of NT$156.61.
GuruFocus considers Khgears International to be Fairly Valued.
Key valuation signals for TPE:4571:
ROE %: 15.63% (near median its 10-year median of 16.45)
GF Value™: NT$156.61 vs. price of NT$170.50 (8.9% above fair value)
Industry Position: 164.5% above the Industrial Products median (#432 of 3009)
No single metric tells the full story. See the TPE:4571 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Khgears International Ltd is engaged in the designing, manufacturing, and sale of shafts, gears and gearboxes for many industries. Its products include bevel gears, cylindrical gears, powder metallurgical gears, and gearboxes. The service industry includes sewing machines, power tools, garden tools and yachting industries.
95GF Score
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