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DST Systems (DST Systems) ROE % : 26.35% (As of Dec. 2017)


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What is DST Systems ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. DST Systems's annualized net income for the quarter that ended in Dec. 2017 was $325 Mil. DST Systems's average Total Stockholders Equity over the quarter that ended in Dec. 2017 was $1,233 Mil. Therefore, DST Systems's annualized ROE % for the quarter that ended in Dec. 2017 was 26.35%.

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

DST's ROE % is not ranked *
in the Software industry.
Industry Median: 3.17
* Ranked among companies with meaningful ROE % only.

DST Systems ROE % Historical Data

The historical data trend for DST Systems'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.

DST Systems ROE % Chart

DST Systems Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.16 49.03 31.39 39.54 38.32

DST Systems Quarterly Data
Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17
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 15.10 84.12 24.58 15.83 26.35

Competitive Comparison of DST Systems's ROE %

For the Software - Infrastructure subindustry, DST Systems'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.


DST Systems's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, DST Systems's ROE % distribution charts can be found below:

* The bar in red indicates where DST Systems's ROE % falls into.



DST Systems ROE % Calculation

DST Systems's annualized ROE % for the fiscal year that ended in Dec. 2017 is calculated as

ROE %=Net Income (A: Dec. 2017 )/( (Total Stockholders Equity (A: Dec. 2016 )+Total Stockholders Equity (A: Dec. 2017 ))/ count )
=451.5/( (1115.2+1241.2)/ 2 )
=451.5/1178.2
=38.32 %

DST Systems's annualized ROE % for the quarter that ended in Dec. 2017 is calculated as

ROE %=Net Income (Q: Dec. 2017 )/( (Total Stockholders Equity (Q: Sep. 2017 )+Total Stockholders Equity (Q: Dec. 2017 ))/ count )
=324.8/( (1224.1+1241.2)/ 2 )
=324.8/1232.65
=26.35 %

* 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 (Dec. 2017) net income data. ROE % is displayed in the 30-year financial page.


DST Systems  (NYSE:DST) 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: Dec. 2017 )
=Net Income/Total Stockholders Equity
=324.8/1232.65
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(324.8 / 2375.6)*(2375.6 / 2970.2)*(2970.2 / 1232.65)
=Net Margin %*Asset Turnover*Equity Multiplier
=13.67 %*0.7998*2.4096
=ROA %*Equity Multiplier
=10.93 %*2.4096
=26.35 %

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: Dec. 2017 )
=Net Income/Total Stockholders Equity
=324.8/1232.65
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (324.8 / 396.8) * (396.8 / 309.2) * (309.2 / 2375.6) * (2375.6 / 2970.2) * (2970.2 / 1232.65)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8185 * 1.2833 * 13.02 % * 0.7998 * 2.4096
=26.35 %

Note: The net income data used here is four times the quarterly (Dec. 2017) net income data. The Revenue data used here is four times the quarterly (Dec. 2017) 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.


DST Systems ROE % Related Terms

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


DST Systems (DST Systems) Business Description

Traded in Other Exchanges
N/A
Address
DST Systems Inc is a provider of information processing and servicing solutions to the financial industry. Clients include asset-management firms, brokerages, retirement funds, and healthcare firms. The company operates three business segments: financial services, healthcare services, and customer communications. DST Systems' largest segment by revenue, financial services, provides transaction processing, account opening and maintenance, reconciliation of trades, positions and cash, corporate actions, regulatory reporting and compliance functions, and tax reporting services. The company generates most of its revenue in the United States of America.
Executives
Samuel G Liss director VERISK ANALYTICS, INC., 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310
Gary D Forsee director C/O INGERSOLL-RAND COMPANY, 155 CHESTNUT RIDGE ROAD, MONTVALE NJ 07645
Joseph C Antonellis director STATE STREET CORPORATION, ONE LINCOLN STREET, BOSTON MA 02111
Charles E Haldeman director C/O JBG/OPERATING PARTNERS, L.P., 4445 WILLARD AVENUE, SUITE 400, CHEVY CHASE MD 20815
Edmund J Burke officer: President of Subsidiary 1290 BROADWAY, SUITE 1100, DENVER CO 80203
Lynn Dorsey Bleil director 333 WEST 11TH STREET, KANSAS CITY MO 64105
Stephen C Hooley director, officer: Chairman, CEO & President 2355 WAUKEGAN ROAD, BANNOCKBURN IL 60015
A Edward Allinson director STATE STREET BOSTON CORP 225 FRANKLIN STREET BOSTON MA 02110
John W Clark director 949 SOUTH COAST DRIVE, SUITE 650, COSTA MESA CA 92626
George L Argyros director ARNEL & AFFILIATES, 949 SOUTH COAST DR SUITE 600, COSTA MESA CA 92626
Lawrence M Higby director C/O APRIA HEALTHCARE GROUP INC, 26220 ENTERPRISE COURT, LAKE FOREST CA 92630
Thomas A Mcdonnell director, officer: CEO & Director C/O KANSAS CITY SOUTHERN, 427 W 12TH STREET, KANSAS CITY MO 64105
M Jeannine Strandjord other: Retired Director as of 5/9/12
William C Nelson director 6521 WE NONGA TERRACE, MISSION HILLS KY 66208
Thomas A Mccullough director C/O DST SYSTEMS, 333 WEST 11TH ST 5TH FL, KANSAS CITY MO 64105

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