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Constant Contact (Constant Contact) ROE % : 9.07% (As of Sep. 2015)


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What is Constant Contact ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Constant Contact's annualized net income for the quarter that ended in Sep. 2015 was $25.6 Mil. Constant Contact's average Total Stockholders Equity over the quarter that ended in Sep. 2015 was $282.1 Mil. Therefore, Constant Contact's annualized ROE % for the quarter that ended in Sep. 2015 was 9.07%.

The historical rank and industry rank for Constant Contact's ROE % or its related term are showing as below:

CTCT's ROE % is not ranked *
in the Media - Diversified industry.
Industry Median: 2.38
* Ranked among companies with meaningful ROE % only.

Constant Contact ROE % Historical Data

The historical data trend for Constant Contact'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.

Constant Contact ROE % Chart

Constant Contact Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.52 15.94 6.72 3.33 5.79

Constant Contact Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 8.22 9.56 5.28 5.52 9.07

Competitive Comparison of Constant Contact's ROE %

For the Advertising Agencies subindustry, Constant Contact'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.


Constant Contact's ROE % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Constant Contact's ROE % distribution charts can be found below:

* The bar in red indicates where Constant Contact's ROE % falls into.



Constant Contact ROE % Calculation

Constant Contact's annualized ROE % for the fiscal year that ended in Dec. 2014 is calculated as

ROE %=Net Income (A: Dec. 2014 )/( (Total Stockholders Equity (A: Dec. 2013 )+Total Stockholders Equity (A: Dec. 2014 ))/ count )
=14.315/( (229.871+264.311)/ 2 )
=14.315/247.091
=5.79 %

Constant Contact's annualized ROE % for the quarter that ended in Sep. 2015 is calculated as

ROE %=Net Income (Q: Sep. 2015 )/( (Total Stockholders Equity (Q: Jun. 2015 )+Total Stockholders Equity (Q: Sep. 2015 ))/ count )
=25.584/( (280.73+283.456)/ 2 )
=25.584/282.093
=9.07 %

* 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 (Sep. 2015) net income data. ROE % is displayed in the 30-year financial page.


Constant Contact  (NAS:CTCT) 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: Sep. 2015 )
=Net Income/Total Stockholders Equity
=25.584/282.093
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(25.584 / 367.436)*(367.436 / 348.8425)*(348.8425 / 282.093)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.96 %*1.0533*1.2366
=ROA %*Equity Multiplier
=7.33 %*1.2366
=9.07 %

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: Sep. 2015 )
=Net Income/Total Stockholders Equity
=25.584/282.093
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (25.584 / 38.78) * (38.78 / 38.628) * (38.628 / 367.436) * (367.436 / 348.8425) * (348.8425 / 282.093)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6597 * 1.0039 * 10.51 % * 1.0533 * 1.2366
=9.07 %

Note: The net income data used here is four times the quarterly (Sep. 2015) net income data. The Revenue data used here is four times the quarterly (Sep. 2015) 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.


Constant Contact ROE % Related Terms

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


Constant Contact (Constant Contact) Business Description

Traded in Other Exchanges
N/A
Address
Constant Contact Inc was incorporated in Massachusetts in 1995 under the name Roving Software Incorporated. The Company provides online marketing tools that are designed for small organizations, including small businesses, associations and non-profits. Its suite of online marketing tools, which include Email Marketing, EventSpot, Social Campaigns, SaveLocal, SinglePlatform and Survey, enable its customers to launch and monitor marketing campaigns across multiple channels, including email, social media, events, local deals, online listings and surveys. Its customers include various types of small organizations including retailers, restaurants, law and accounting firms, consultants, non-profits, religious organizations and alumni associations. Its email marketing product allows customers to easily create, send and track professional-looking email campaigns. The product includes a campaign creation wizard that makes it easy to create and edit email campaigns with access to over 300 pre-designed email campaign templates that reflect a wide variety of themes and styles and over 15 million images through its relationship with Bigstock, a subsidiary of Shutterstock, Inc. The Company also offers market leading free tools and applications that allow customers to add and update contacts, including adding contacts directly from a computer or point of sale device. Its event marketing product allows its customers to promote and manage events, communicate with invitees and registrants, capture and track registrations and collect online payments. The Company's social media products include Social Campaigns, which empowers customers to reach and engage users on Facebook to grow their fans and create social word-of-mouth through easy-to-create offers and promotions. SaveLocal provides service to its customers to retain existing customers and attract new customers by creating, running and managing local deals, and provides them with end-to-end control over their deals at an affordable price. The Company's online survey product enables its customers to survey their customers or members and analyze responses. SinglePlatform provides its customers the power to manage all of their key online listings from one place by helping them to create a content rich digital storefront, which can include menus, photos, services, offers and featured products. As of December 31, 2013, the Company served a large and diverse group of approximately 595,000 unique paying customers. Its Social Campaigns product competes with offerings by Offerpop Corporation, Pagemodo, a subsidiary of VistaPrint N.V., Vocus Social Media LLC doing business as North Social and Wildfire Interactive, Inc. Its SaveLocal product competes with offerings by Groupon, Inc., LivingSocial, Inc., Amazon Local and Google Offers. Its SinglePlatform product competes with offerings by Yext, Inc. and Locu Inc., a subsidiary of GoDaddy.com, LLC. Its survey product competes with offerings by Surveymonkey.c
Executives
Harpreet Grewal officer: EVP, Chief Financial Officer C/O VISTAPRINT USA, INCORPORATED, 100 HAYDEN AVE., LEXINGTON MA 02050
Kenneth J Surdan officer: Senior VP, Product C/O ENDURANCE INTERNATIONAL GROUP 10 CORPORATE DRIVE, SUITE 300 BURLINGTON MA 01803
Robert P Nault officer: SVP & General Counsel C/O MIMECAST LIMITED, MIMECAST NA, INC. 191 SPRING STREET LEXINGTON MA 02421
Julie Mb Bradley director C/O TRIPADVISOR, INC., 141 NEEDHAM STREET, NEWTON MA 02464
Robert P Badavas director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO IL 94301
Sharon T Rowlands director 195 BROADWAY, NEW YORK NY 10007
Rick W Jensen officer: SVP, Chief Sales & Mktg. Off. C/O CONSTANT CONTACT, RESERVOIR PLACE, 1601 TRAPELO RD., SUITE 246, WALTHAM MA 02451
Walsh John J Jr officer: SVP, Engineering & Operations 1601 TRAPELO ROAD, SUITE 329 C/O CONSTANT CONTACT, INC. WALTHAM MA 02451
Stanley Morgan 10 percent owner 1585 BROADWAY, NEW YORK NY 10036
Greylock Xii Gp Llc 10 percent owner 2550 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Greylock Xii Limited Partnership 10 percent owner 40 GROVE STREET, SUITE 430, WELLESLEY MA 02482

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