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Rich Honour International Designs Co (TPE:6754) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) 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.
Rich Honour International Designs Co ROE % Related Terms
Rich Honour International Designs Co ROE % Historical Data
* 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 Consulting Services subindustry, Rich Honour International Designs 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.
Rich Honour International Designs Co ROE % vs Business Services Industry
* 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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Rich Honour International Designs Co (TPE:6754) has a ROE % of 6.96% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rich Honour International Designs Co and its competitors. This is 42% below median its historical median of 11.91. Over the past decade, Rich Honour International Designs Co's ROE % has ranged from 6.12 to 18.67. According to the industry distribution chart, Rich Honour International Designs Co ranks #476 out of 1056 companies in the Business Services industry, placing it in the top 45.1%.
Is Rich Honour International Designs Co's ROE % too high?
Rich Honour International Designs Co's current ROE % of 6.96% is 42% below median its 10-year median of 11.91. Over the past 10 years, this metric has ranged from a low of 6.12 to a high of 18.67. The Business Services industry median ROE % is 8.62. Rich Honour International Designs Co's value of 6.96% is 19.3% below this industry median. Based on the distribution chart, Rich Honour International Designs Co ranks #476 out of 1056 companies in the Business Services industry, which is above the industry midpoint. Overall, Rich Honour International Designs Co has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rich Honour International Designs Co's ROE % compare to VRSK and EFX?
According to the Business Services industry distribution chart, Rich Honour International Designs Co ranks #476 out of 1056 companies for ROE %. This puts Rich Honour International Designs Co in the upper half of its industry. The industry median ROE % is 8.62. Rich Honour International Designs Co's value of 6.96% is 19.3% below this benchmark. Historically, Rich Honour International Designs Co's own ROE % has ranged from 6.12 to 18.67 over the past decade. While the company's 10-year median is 11.91 vs. the industry median of 8.62, Rich Honour International Designs Co has consistently been below 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 Business Services company?
The median ROE % among Business Services companies is 8.62, based on 1,056 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. Rich Honour International Designs Co's current ROE % of 6.96% is 19.3% below 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 Rich Honour International Designs Co and its competitors. For the Business Services industry, the median ROE % is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rich Honour International Designs Co's current ROE % is 6.96%, which is 42% below median its own 10-year median of 11.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rich Honour International Designs Co stock overvalued right now?
Based on GuruFocus' analysis, Rich Honour International Designs Co (TPE:6754) is currently considered Fairly Valued. The stock's GF Value™ is NT$39.78, compared to a current price of NT$42.10 — trading 5.8% above its estimated fair value. The current ROE % is 6.96%, which is 42% below median its 10-year median of 11.91 and 19.3% below the Business Services industry median of 8.62. Rich Honour International Designs Co's overall GF Score™ is 89/100 with 5 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 Rich Honour International Designs Co (TPE:6754), the current ROE % is 6.96% as of Jun. 2026. 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 Rich Honour International Designs Co (TPE:6754) Overvalued in 2026?
Based on GuruFocus' analysis, Rich Honour International Designs Co stock appears to be overvalued.
The current stock price of NT$42.10 is trading 5.8% above its estimated GF Value™ of NT$39.78.
GuruFocus considers Rich Honour International Designs Co to be Fairly Valued.
Key valuation signals for TPE:6754:
ROE %: 6.96% (42% below median its 10-year median of 11.91)
GF Value™: NT$39.78 vs. price of NT$42.10 (5.8% above fair value)
Industry Position: 19.3% below the Business Services median (#476 of 1056)
No single metric tells the full story. See the TPE:6754 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rich Honour International Designs Co Ltd is a Taiwan based company engaged in providing various business services such as Interior design, interior decoration, renovation, project management, master planning, boutique implementation design, Interior fitting-out, and others. The group operates in two principal geographical areas: Taiwan and China.
89GF Score
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