Sanima Mai HydropowerXNEP:SHPC +0.18%75 ROE % is 1.58% as of Jul. 2025, which is 84% below its 10-year median of 10.19. GuruFocus rates XNEP:SHPC with a GF Score™ of 75/100 and a GF Value™ of NPR232.03 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 433 Utilities - Independent Power Producers companies, Sanima Mai Hydropower ranks better than 56.12% on this metric.
Sanima Mai Hydropower (XNEP:SHPC) 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 two times the semi-annual (Jul. 2025) net income data. The Revenue data used here is two times the semi-annual (Jul. 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 Utilities - Renewable subindustry, Sanima Mai Hydropower'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.
Sanima Mai Hydropower ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Sanima Mai Hydropower's ROE % distribution charts can be found below:
* The bar in red indicates where Sanima Mai Hydropower'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 two times the semi-annual (Jul. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Sanima Mai Hydropower (XNEP:SHPC) has a ROE % of 1.58% as of Jul. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sanima Mai Hydropower and its competitors. This is 84% below median its historical median of 10.19. According to the industry distribution chart, Sanima Mai Hydropower ranks #190 out of 433 companies in the Utilities - Independent Power Producers industry, placing it in the top 43.9%.
Is Sanima Mai Hydropower's ROE % too high?
Sanima Mai Hydropower's current ROE % of 1.58% is 84% below median its 10-year median of 10.19. The Utilities - Independent Power Producers industry median ROE % is 3.80. Sanima Mai Hydropower's value of 1.58% is 58.4% below this industry median. Based on the distribution chart, Sanima Mai Hydropower ranks #190 out of 433 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Sanima Mai Hydropower has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sanima Mai Hydropower's ROE % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Sanima Mai Hydropower ranks #190 out of 433 companies for ROE %. This puts Sanima Mai Hydropower in the upper half of its industry. The industry median ROE % is 3.80. Sanima Mai Hydropower's value of 1.58% is 58.4% below this benchmark. While the company's 10-year median is 10.19 vs. the industry median of 3.80, Sanima Mai Hydropower 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 an Utilities - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.80, based on 433 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. Sanima Mai Hydropower's current ROE % of 1.58% is 58.4% 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 Sanima Mai Hydropower and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sanima Mai Hydropower's current ROE % is 1.58%, which is 84% below median its own 10-year median of 10.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sanima Mai Hydropower stock overvalued right now?
Based on GuruFocus' analysis, Sanima Mai Hydropower (XNEP:SHPC) is currently considered Significantly Overvalued. The stock's GF Value™ is NPR232.03, compared to a current price of NPR495.90 — trading 113.7% above its estimated fair value. The current ROE % is 1.58%, which is 84% below median its 10-year median of 10.19 and 58.4% below the Utilities - Independent Power Producers industry median of 3.80. Sanima Mai Hydropower's overall GF Score™ is 75/100 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 Sanima Mai Hydropower (XNEP:SHPC), the current ROE % is 1.58% as of Jul. 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 Sanima Mai Hydropower (XNEP:SHPC) Overvalued in 2026?
Based on GuruFocus' analysis, Sanima Mai Hydropower stock appears to be overvalued.
The current stock price of NPR495.90 is trading 113.7% above its estimated GF Value™ of NPR232.03.
GuruFocus considers Sanima Mai Hydropower to be Significantly Overvalued.
Key valuation signals for XNEP:SHPC:
ROE %: 1.58% (84% below median its 10-year median of 10.19)
GF Value™: NPR232.03 vs. price of NPR495.90 (113.7% above fair value)
Industry Position: 58.4% below the Utilities - Independent Power Producers median (#190 of 433)
No single metric tells the full story. See the XNEP:SHPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sanima Mai Hydropower Ltd is a hydropower company. Its activity is to generate and sell hydroelectricity to the Nepal Electricity Authority. The company's operating segment include Mai Hydropower Plant and Mai Cascade Hydropower Plant. It generates maximum revenue from the Mai Hydropower Plant segment. The Mai Hydropower Project is a run-of-the-river hydropower plant with an installed capacity of 22MW.
75GF Score
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