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FEI Co (FEI Co) ROE % : 9.60% (As of Jun. 2016)


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What is FEI Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. FEI Co's annualized net income for the quarter that ended in Jun. 2016 was $99.8 Mil. FEI Co's average Total Stockholders Equity over the quarter that ended in Jun. 2016 was $1,039.4 Mil. Therefore, FEI Co's annualized ROE % for the quarter that ended in Jun. 2016 was 9.60%.

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

FEIC's ROE % is not ranked *
in the Hardware industry.
Industry Median: 4.525
* Ranked among companies with meaningful ROE % only.

FEI Co ROE % Historical Data

The historical data trend for FEI Co'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.

FEI Co ROE % Chart

FEI Co Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.58 14.96 13.21 9.92 12.21

FEI Co Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 14.71 4.13 19.54 9.04 9.60

Competitive Comparison of FEI Co's ROE %

For the Scientific & Technical Instruments subindustry, FEI Co'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.


FEI Co's ROE % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, FEI Co's ROE % distribution charts can be found below:

* The bar in red indicates where FEI Co's ROE % falls into.



FEI Co ROE % Calculation

FEI Co's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=124.009/( (1041.325+990.076)/ 2 )
=124.009/1015.7005
=12.21 %

FEI Co's annualized ROE % for the quarter that ended in Jun. 2016 is calculated as

ROE %=Net Income (Q: Jun. 2016 )/( (Total Stockholders Equity (Q: Mar. 2016 )+Total Stockholders Equity (Q: Jun. 2016 ))/ count )
=99.76/( (1035.95+1042.893)/ 2 )
=99.76/1039.4215
=9.60 %

* 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 (Jun. 2016) net income data. ROE % is displayed in the 30-year financial page.


FEI Co  (NAS:FEIC) 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: Jun. 2016 )
=Net Income/Total Stockholders Equity
=99.76/1039.4215
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(99.76 / 1037.46)*(1037.46 / 1434.4315)*(1434.4315 / 1039.4215)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.62 %*0.7233*1.38
=ROA %*Equity Multiplier
=6.96 %*1.38
=9.60 %

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: Jun. 2016 )
=Net Income/Total Stockholders Equity
=99.76/1039.4215
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (99.76 / 124.776) * (124.776 / 129.44) * (129.44 / 1037.46) * (1037.46 / 1434.4315) * (1434.4315 / 1039.4215)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7995 * 0.964 * 12.48 % * 0.7233 * 1.38
=9.60 %

Note: The net income data used here is four times the quarterly (Jun. 2016) net income data. The Revenue data used here is four times the quarterly (Jun. 2016) 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.


FEI Co ROE % Related Terms

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


FEI Co (FEI Co) Business Description

Traded in Other Exchanges
N/A
Address
FEI Co was founded and incorporated in Oregon in 1971. It is a supplier of scientific instruments and related services for nanoscale applications and solutions for industry and science. It designs, manufactures, and supports the high-performance microscopy workflows that provide images and answers in the micro-, nano-, and picometer scales. The Company operates in two segments including Industry Group and the Science Group. The Industry Group consists of customers in semiconductor integrated circuit manufacturing and related industries such as manufacturers of data storage equipment and other technologies, as well as customers in the oil and gas industry. The tools developed for Industry Group customers are generally aimed at improving their processes to increase overall yields, whether in a semiconductor factory or at an oil and gas reservoir. For the semiconductor market, it shrinks line widths and process nodes of 16/14 nanometers and smaller, increasing complexity in their materials such as high-k metal gates and low-k dielectrics and increasing device complexity such as 3D transistor architectures; and this products are used in laboratories, near the fabrication line to speed new product development and increase yields by enabling 3D metrology for advanced process control, defect analysis, and root cause failure analysis. For the oil and gas market, its products are used to increase yields in oil and gas exploration and for laboratory analysis. It also provides support for products and customers for the entire life cycle of a tool from installation through the warranty period, and after the warranty period through contract coverage or on a time and materials basis. The Science Group includes universities, public and private research laboratories and customers in industries, including metals, automobiles, aerospace, geosciences and forensics. The tools developed for customers in the Science Group are generally aimed at the exploration and discovery of new materials and chemistries or solving for causes and cures of diseases. The tools are used in a laboratory and are generally not used in industrial applications. It also includes customers at universities, government laboratories and research institutes engaged in biotech and life sciences applications, as well as pharmaceutical and biotech companies. Its solutions enable scientific discovery and advancement for researchers and help manufacturers develop, analyze and produce advanced products. Its products are also used in root cause failure analysis and quality control applications across a range of industries. Its products' ultra-high resolution imaging allows structural biologists to create detailed 3D reconstructions of complex biological structures such as proteins and viruses. Cellular biologists use companies tools to correlate wide-field, lower resolution optical images with higher resolution electron microscope imaging. Its products are also used by drug researchers
Executives
Anthony L Trunzo officer: See Remarks 27700 SW PARKWAY AVENUE, WILSONVILLE OR 97070
Jami K Nachtsheim director
Don R Kania director, officer: See Remarks C/O FEI COMPANY, 5350 NE DAWSON CREEK DRIVE, HILLSBORO OR 97124
James T Richardson director 01396 SW MILITARY ROAD, PORTLAND OR 97219
Homa Bahrami director 4900 PATRICK HENRY DRIVE, SANTA CLARA CA 95054
Thomas F Kelly director 57 STEVENSON LANE, ATHERTON CA 94027
Gerhard H Parker director 3050 BOWERS AVE, SANTA CLARA CA 95054
Raymond A Link officer: Executive VP, CFO C/O FORMFACTOR, INC., 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Benjamin Geklim Loh officer: EVP and COO C/O FEI COMPANY, 5350 NE DAWSON CREEK DRIVE, HILLSBORO OR 97124
Peter Frasso officer: Executive Vice President, COO

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