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Xtep International HoldingsXTEPY 82 ROE % is 9.21% as of Dec. 2025, which is 22% below its 10-year median of 11.87. GuruFocus rates XTEPY with a GF Score™ of 82/100 and a GF Value™ of $75.50 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,100 Retail - Cyclical companies, Xtep International Holdings ranks better than 71.64% on this metric.
Xtep International Holdings (OTCPK:XTEPY) 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 (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (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 Apparel Retail subindustry, Xtep International Holdings'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.
Xtep International Holdings ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Xtep International Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Xtep International Holdings'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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Xtep International Holdings (XTEPY) has a ROE % of 9.21% 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 Xtep International Holdings and its competitors. This is 22% below median its historical median of 11.87. Over the past decade, Xtep International Holdings' ROE % has ranged from 7.49 to 14.74. According to the industry distribution chart, Xtep International Holdings ranks #312 out of 1100 companies in the Retail - Cyclical industry, placing it in the top 28.4%.
Is Xtep International Holdings' ROE % too high?
Xtep International Holdings' current ROE % of 9.21% is 22% below median its 10-year median of 11.87. Over the past 10 years, this metric has ranged from a low of 7.49 to a high of 14.74. The Retail - Cyclical industry median ROE % is 6.53. Xtep International Holdings' value of 9.21% is 41.1% above this industry median. Based on the distribution chart, Xtep International Holdings ranks #312 out of 1100 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Xtep International Holdings has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Xtep International Holdings' ROE % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Xtep International Holdings ranks #312 out of 1100 companies for ROE %. This puts Xtep International Holdings in the upper half of its industry. The industry median ROE % is 6.53. Xtep International Holdings' value of 9.21% is 41.1% above this benchmark. Historically, Xtep International Holdings' own ROE % has ranged from 7.49 to 14.74 over the past decade. While the company's 10-year median is 11.87 vs. the industry median of 6.53, Xtep International Holdings 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 Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.53, based on 1,100 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. Xtep International Holdings's current ROE % of 9.21% is 41.1% 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 Xtep International Holdings and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xtep International Holdings's current ROE % is 9.21%, which is 22% below median its own 10-year median of 11.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xtep International Holdings stock overvalued right now?
Based on GuruFocus' analysis, Xtep International Holdings (XTEPY) is currently considered Significantly Undervalued. The stock's GF Value™ is $75.50, compared to a current price of $49.00 — trading 35.1% below its estimated fair value. The current ROE % is 9.21%, which is 22% below median its 10-year median of 11.87 and 41.1% above the Retail - Cyclical industry median of 6.53. Xtep International Holdings' overall GF Score™ is 82/100 with 2 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 Xtep International Holdings (XTEPY), the current ROE % is 9.21% 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 Xtep International Holdings (XTEPY) Overvalued in 2026?
Based on GuruFocus' analysis, Xtep International Holdings stock appears to be undervalued.
The current stock price of $49.00 is trading 35.1% below its estimated GF Value™ of $75.50.
GuruFocus considers Xtep International Holdings to be Significantly Undervalued.
Key valuation signals for XTEPY:
ROE %: 9.21% (22% below median its 10-year median of 11.87)
GF Value™: $75.50 vs. price of $49.00 (35.1% below fair value)
Industry Position: 41.1% above the Retail - Cyclical median (#312 of 1100)
No single metric tells the full story. See the XTEPY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xtep International Holdings Ltd is principally engaged in the design, development, manufacturing, sales, marketing and brand management of sports products including footwear, apparel and accessories for adults and children. With its core Xtep brand, as well as Saucony and Merrell under its diversified brand portfolio, and professional sports segments through an extensive distribution network of more than 8,100 stores. It has two reportable operating segments from continuing operations as follows: (a) mass market segment, including signature brand, Xtep; and (b) professional sports segment, including signature brands, Saucony and Merrell.
82GF Score
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