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Cornerstone Building Brands (Cornerstone Building Brands) ROE % : 32.27% (As of Mar. 2022)


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What is Cornerstone Building Brands ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Cornerstone Building Brands's annualized net income for the quarter that ended in Mar. 2022 was $409 Mil. Cornerstone Building Brands's average Total Stockholders Equity over the quarter that ended in Mar. 2022 was $1,268 Mil. Therefore, Cornerstone Building Brands's annualized ROE % for the quarter that ended in Mar. 2022 was 32.27%.

The historical rank and industry rank for Cornerstone Building Brands's ROE % or its related term are showing as below:

CNR's ROE % is not ranked *
in the Construction industry.
Industry Median: 6.71
* Ranked among companies with meaningful ROE % only.

Cornerstone Building Brands ROE % Historical Data

The historical data trend for Cornerstone Building Brands'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.

* Premium members only.

Cornerstone Building Brands ROE % Chart

Cornerstone Building Brands Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Dec19 Dec20 Dec21
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.66 19.86 -2.43 -70.11 82.30

Cornerstone Building Brands Quarterly Data
Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.47 7.62 311.96 13.30 32.27

Competitive Comparison of Cornerstone Building Brands's ROE %

For the Building Products & Equipment subindustry, Cornerstone Building Brands'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.


Cornerstone Building Brands's ROE % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Cornerstone Building Brands's ROE % distribution charts can be found below:

* The bar in red indicates where Cornerstone Building Brands's ROE % falls into.



Cornerstone Building Brands ROE % Calculation

Cornerstone Building Brands's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=665.859/( (441.805+1176.339)/ 2 )
=665.859/809.072
=82.30 %

Cornerstone Building Brands's annualized ROE % for the quarter that ended in Mar. 2022 is calculated as

ROE %=Net Income (Q: Mar. 2022 )/( (Total Stockholders Equity (Q: Dec. 2021 )+Total Stockholders Equity (Q: Mar. 2022 ))/ count )
=409.132/( (1176.339+1359.123)/ 2 )
=409.132/1267.731
=32.27 %

* 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 (Mar. 2022) net income data. ROE % is displayed in the 30-year financial page.


Cornerstone Building Brands  (NYSE:CNR) 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:

ROE %(Q: Mar. 2022 )
=Net Income/Total Stockholders Equity
=409.132/1267.731
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(409.132 / 6267.352)*(6267.352 / 5929.558)*(5929.558 / 1267.731)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.53 %*1.057*4.6773
=ROA %*Equity Multiplier
=6.9 %*4.6773
=32.27 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2022 )
=Net Income/Total Stockholders Equity
=409.132/1267.731
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (409.132 / 546.596) * (546.596 / 433.452) * (433.452 / 6267.352) * (6267.352 / 5929.558) * (5929.558 / 1267.731)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7485 * 1.261 * 6.92 % * 1.057 * 4.6773
=32.27 %

Note: The net income data used here is four times the quarterly (Mar. 2022) net income data. The Revenue data used here is four times the quarterly (Mar. 2022) 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.


Cornerstone Building Brands ROE % Related Terms

Thank you for viewing the detailed overview of Cornerstone Building Brands's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Cornerstone Building Brands (Cornerstone Building Brands) Business Description

Traded in Other Exchanges
N/A
Address
5020 Weston Parkway, Suite 400, Cary, NC, USA, 27513
Cornerstone Building Brands Inc constructs and sells building materials for the commercial, residential, and repair industries in North America. The company operates in three segments: commercial, which provides metal products and coil coating services for commercial construction; siding, which offers vinyl and steel siding, aluminum coil and gutters, roofing accessories, moldings, window and door trim, rain removal systems, vents, fences, and railings; and windows, which includes vinyl, aluminum, and wooden windows as well as steel, wood, and fiberglass doors. All three segments contribute sizably to total revenue.
Executives
Rose Lee director, officer: PRESIDENT & CEO C/O CROWN HOLDINGS, INC., 770 TOWNSHIP LINE ROAD, YARDLEY PA 19067
Judith A Reinsdorf director C. R. BARD, INC., 730 CENTRAL AVENUE, MURRAY HILL NJ 07974
Alena Brenner officer: EVP, GC and Corp. Sec. 5020 WESTON PARKWAY, SUITE 400 CARY NC 27513
Jeffrey S. Lee officer: EVP, CFO 5020 WESTON PARKWAY, SUITE 400 CARY NC 27513
Katy Theroux officer: Executive VP, Chief HR Officer 10943 N. SAM HOUSTON PARKWAY W. HOUSTON TX 77056
Daniel C. Janki director 5020 WESTON PARKWAY, SUITE 400, CARY NC 27513
Timothy J. Obrien director C/O NCI BUILDING SYSTEMS, INC. 10943 NORTH SAM HOUSTON PARKWAY WEST HOUSTON TX 77064
George L. Ball director 10943 N. SAM HOUSTON PARKWAY W., HOUSTON TX 77064
William E Jackson director ONE NEENAH CENTER, 4TH FLOOR P.O. BOX 669 NEENAH WI 54957
Kathleen J Affeldt director
John J Holland director 26602 W. GREENTREE, OLATHE KS 66061
James Keppler officer: EVP, OPERATIONS 5020 WESTON PARKWAY SUITE 400 CARY NC 27513
James Wilbert W Jr director 16100 SOUTH LATHROP AVENUE, HARVEY IL 60426
Wayne Irmiter officer: SVP, CAO 5020 WESTON PARKWAY CAY NC 27513
John L Buckley officer: President, Siding Division 5020 WESTON PARKWAY, SUITE 400 CARY NC 27513

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