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MTGE Investment (MTGE Investment) ROE % : 3.35% (As of Jun. 2018)


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What is MTGE Investment ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. MTGE Investment's annualized net income for the quarter that ended in Jun. 2018 was $31.84 Mil. MTGE Investment's average Total Stockholders Equity over the quarter that ended in Jun. 2018 was $951.81 Mil. Therefore, MTGE Investment's annualized ROE % for the quarter that ended in Jun. 2018 was 3.35%.

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

MTGE's ROE % is not ranked *
in the REITs industry.
Industry Median: 4.21
* Ranked among companies with meaningful ROE % only.

MTGE Investment ROE % Historical Data

The historical data trend for MTGE Investment'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.

MTGE Investment ROE % Chart

MTGE Investment Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROE %
Get a 7-Day Free Trial -8.33 13.97 -3.54 4.54 16.65

MTGE Investment Quarterly Data
Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
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 17.75 20.25 12.00 -8.70 3.35

Competitive Comparison of MTGE Investment's ROE %

For the REIT - Diversified subindustry, MTGE Investment'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.


MTGE Investment's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, MTGE Investment's ROE % distribution charts can be found below:

* The bar in red indicates where MTGE Investment's ROE % falls into.



MTGE Investment ROE % Calculation

MTGE Investment'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 )
=161.335/( (932.73+1005.107)/ 2 )
=161.335/968.9185
=16.65 %

MTGE Investment's annualized ROE % for the quarter that ended in Jun. 2018 is calculated as

ROE %=Net Income (Q: Jun. 2018 )/( (Total Stockholders Equity (Q: Mar. 2018 )+Total Stockholders Equity (Q: Jun. 2018 ))/ count )
=31.844/( (959.797+943.83)/ 2 )
=31.844/951.8135
=3.35 %

* 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 (Jun. 2018) net income data. ROE % is displayed in the 30-year financial page.


MTGE Investment  (NAS:MTGE) 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. 2018 )
=Net Income/Total Stockholders Equity
=31.844/951.8135
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(31.844 / 33.644)*(33.644 / 5758.482)*(5758.482 / 951.8135)
=Net Margin %*Asset Turnover*Equity Multiplier
=94.65 %*0.0058*6.05
=ROA %*Equity Multiplier
=0.55 %*6.05
=3.35 %

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: Jun. 2018 )
=Net Income/Total Stockholders Equity
=31.844/951.8135
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (31.844 / 31.828) * (31.828 / -23.86) * (-23.86 / 33.644) * (33.644 / 5758.482) * (5758.482 / 951.8135)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.0005 * -1.3339 * -70.92 % * 0.0058 * 6.05
=3.35 %

Note: The net income data used here is four times the quarterly (Jun. 2018) net income data. The Revenue data used here is four times the quarterly (Jun. 2018) 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.


MTGE Investment ROE % Related Terms

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


MTGE Investment (MTGE Investment) Business Description

Traded in Other Exchanges
N/A
Address
MTGE Investment is a hybrid mortgage REIT that invests in, finances, and manages a portfolio of agency mortgage-backed securities, nonagency mortgage investments, and other real estate-related assets. Its residential mortgage-backed securities, or RMBS, include residential mortgage pass-through certificates and collateralised mortgage obligations. Its nonagency mortgage investments comprise RMBS backed by residential mortgages, as well as prime and nonprime residential mortgage loans. The company generates its revenue from the interest earned and lease payments received on its investment assets. MTGE Investment's assets are externally managed by a subsidiary of AGNC Investment.
Executives
Julia Lynn Coronado director C/O DYNEX CAPITAL, INC., 4991 LAKE BROOK DRIVE, SUITE 100, GLEN ALLEN VA 23060
Sean Reid officer: CEO AGNC INVESTMENT CORP., 7373 WISCONSIN AVENUE, 22ND FLOOR, BETHESDA MD 20814
Donald Holley officer: SVP and CFO AMERICAN CAPITAL MORTGAGE INVESTMENT COR, 2 BETHESDA METRO CENTER, 12TH FLOOR, BETHESDA MD 20814
Robert M. Couch director AMERICAN CAPITAL AGENCY CORP., 2 BETHESDA METRO CENTER, 12TH FLOOR, BETHESDA MD 20814
Randy E. Dobbs director C/O VIEMED HEALTHCARE, INC, 625 E. KALISTE SALOOM RD, LAFAYETTE LA 70508
Kenneth L. Pollack officer: SVP, CCO and Secretary AMERICAN CAPITAL AGENCY CORP., 2 BETHESDA METRO CENTER, 12TH FLOOR, BETHESDA MD 20814
Aaron Pas officer: SVP AMERICAN CAPITAL MORTGAGE INVESTMENT COR, 2 BETHESDA METRO CENTER, 12TH FLOOR, BETHESDA MD 20814
Christopher Kuehl officer: EVP and CIO AMERICAN CAPITAL AGENCY CORP., 7373 WISCONSIN AVENUE, 22ND FL, BETHESDA MD 20814
Peter J Federico officer: EVP and CFO AMERICAN CAPITAL MORTGAGE INVESTMENT COR, 2 BETHESDA METRO CENTER, 12TH FLOOR, BETHESDA MD 20814
Gary D Kain director, officer: Dir., CEO, President and CIO AMERICAN CAPITAL, LTD., 7373 WISCONSIN AVENUE, 22ND FLOOR, BETHESDA MD 20814
Steven W. Abrahams director MTGE INVESTMENT CORP., 2 BETHESDA METRO CENTER, 12TH FLOOR, BETHESDA MD 20814
Prue Larocca director AMERICAN CAPITAL AGENCY CORP., 7373 WISCONSIN AVENUE, 22ND FLOOR, BETHESDA MD 20814
Morris A. Davis director C/O AGNC INVESTMENT CORP., 7373 WISCONSIN AVENUE, 22ND FLOOR, BETHESDA MD 20814
Larry K Harvey director AMERICAN CAPITAL AGENCY CORP., 2 BETHESDA METRO, 12TH FLOOR, BETHESDA MD 20814
John R Erickson director 2 BETHESDA METRO CENTER, 14TH FLOOR, BETHESDA MD 20814