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Hallmark Financial Services (Hallmark Financial Services) ROE %

: -3,726.75% (As of Sep. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hallmark Financial Services's annualized net income for the quarter that ended in Sep. 2023 was $-86.0 Mil. Hallmark Financial Services's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was $2.3 Mil. Therefore, Hallmark Financial Services's annualized ROE % for the quarter that ended in Sep. 2023 was -3,726.75%.

The historical rank and industry rank for Hallmark Financial Services's ROE % or its related term are showing as below:

HALL' s ROE % Range Over the Past 10 Years
Min: -258.99   Med: 3.04   Max: 8.51
Current: -258.99

During the past 13 years, Hallmark Financial Services's highest ROE % was 8.51%. The lowest was -258.99%. And the median was 3.04%.

HALL's ROE % is ranked worse than
99.79% of 485 companies
in the Insurance industry
Industry Median: 9.67 vs HALL: -258.99

Hallmark Financial Services ROE % Historical Data

The historical data trend for Hallmark Financial Services'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.

Hallmark Financial Services Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.08 -0.24 -43.78 5.25 -91.69

Hallmark Financial Services Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
ROE % 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 Premium Member Only Premium Member Only Premium Member Only -138.91 -46.46 -373.54 -265.23 -3,726.75

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Hallmark Financial Services'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.


Hallmark Financial Services ROE % Distribution

For the Insurance industry and Financial Services sector, Hallmark Financial Services's ROE % distribution charts can be found below:

* The bar in red indicates where Hallmark Financial Services's ROE % falls into.



Hallmark Financial Services ROE % Calculation

Hallmark Financial Services's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=-108.11/( (175.521+60.294)/ 2 )
=-108.11/117.9075
=-91.69 %

Hallmark Financial Services's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=-86.032/( (12.385+-7.768)/ 2 )
=-86.032/2.3085
=-3,726.75 %

* 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. 2023) net income data. ROE % is displayed in the 30-year financial page.


Hallmark Financial Services  (OTCPK:HALL) 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. 2023 )
=Net Income/Total Stockholders Equity
=-86.032/2.3085
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-86.032 / 167.596)*(167.596 / 1171.135)*(1171.135 / 2.3085)
=Net Margin %*Asset Turnover*Equity Multiplier
=-51.33 %*0.1431*507.3143
=ROA %*Equity Multiplier
=-7.35 %*507.3143
=-3,726.75 %

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. 2023 )
=Net Income/Total Stockholders Equity
=-86.032/2.3085
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / EBIT) * (EBIT / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-86.032 / -64.82) * (-64.82 / -56.676) * (-56.676 / 167.596) * (167.596 / 1171.135) * (1171.135 / 2.3085)
= Tax Burden * Interest Burden * EBIT Margin % * Asset Turnover * Equity Multiplier
= 1.3272 * 1.1437 * -33.82 % * 0.1431 * 507.3143
=-3,726.75 %

Note: The net income data used here is four times the quarterly (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 2023) 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.


Hallmark Financial Services ROE % Related Terms

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


Hallmark Financial Services (Hallmark Financial Services) Business Description

Traded in Other Exchanges
N/A
Address
5420 Lyndon B. Johnson Freeway, Suite 1100, Two Lincoln Centre, Dallas, TX, USA, 75240
Hallmark Financial Services Inc is an insurance holding company, which is engaged in the sale of property/casualty insurance products to businesses and individuals. Its business involves marketing, distributing, underwriting, and servicing insurance products, as well as providing other insurance-related services. The company operates in segments such as Standard Commercial Segment, Specialty Commercial Segment, and Personal Segment. Geographically, it operates through the region of United States and derives a majority of its revenue from Specialty Commercial Segment, which includes Commercial Auto business unit, E&S Casualty business unit, E&S Property business unit, Professional Liability business unit, and Aerospace & Programs business unit.
Executives
Doug Slape director 5420 LYNDON B JOHNSON FREEWAY, SUITE 1100, DALLAS TX 75240
Christopher James Kenney officer: Chief Accounting Officer 5420 LYNDON B JOHNSON FREEWAY, SUITE 1100, DALLAS TX 75240-2345
Naveen Anand officer: President & CEO 777 MAIN STREET, SUITE 1000, FORT WORTH TX 76102
Scott T Berlin director 14651 DALLAS PARKWAY STE 900, DALLAS TX 75254
James H Graves director ERWIN GRAVES & ASSOCIATES, 2100 MCKINNEY AVE STE 900, DALLAS TX 75205
Jeffrey R Passmore officer: CHIEF ACCOUNTING OFFICER 777 MAIN STREET, SUITE 1000, FORT WORTH TX 76102
Mark E Pape director 12050 MEADOW LAKE DRIVE, ARGYLE TX 76226
Kevin Kasitz officer: PRESIDENT OF SUBSIDIARY
Mark E Schwarz director, 10 percent owner, officer: C.E.O. & CHAIRMAN 5420 LYNDON B. JOHNSON FREEWAY, SUITE 1100, DALLAS TX 75240
Mark J Morrison officer: CHIEF FINANCIAL OFFICER 777 W MAIN STREET, SUITE 1000, FORT WORTH TX 76102
Ncm Services, Inc. 10 percent owner 5420 LYNDON B. JOHNSON FREEWAY, SUITE 1100, DALLAS TX 75240
Schwarz 2012 Family Trust 10 percent owner 5420 LYNDON B. JOHNSON FREEWAY, SUITE 1100, DALLAS TX 75240
Detroit Stoker Co other: See Explanation 1510 E. FIRST ST., MONROE MI 48161
Jim W Henderson director
Newcastle Special Opportunity Fund I, L.p. other: see attached explanation 200 CRESCENT COURT, SUITE 1400, DALLAS TX 75201

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