SELECT id, `name`, primary_key, `key`, treemapgroup, name_cn, zacks_table_name, compare_key, compare_display_name from gurufocu_main.financial_definition where termpagedisplay=1 and `key` = 'ROE' NL (NL Industries) ROE %
GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » NL Industries Inc (NYSE:NL) » Definitions » ROE %

NL Industries (NL Industries) ROE %

: 8.27% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. NL Industries's annualized net income for the quarter that ended in Dec. 2023 was $30.3 Mil. NL Industries's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $367.0 Mil. Therefore, NL Industries's annualized ROE % for the quarter that ended in Dec. 2023 was 8.27%.

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

NL' s ROE % Range Over the Past 10 Years
Min: -13.24   Med: 8.94   Max: 45.24
Current: -0.62

During the past 13 years, NL Industries's highest ROE % was 45.24%. The lowest was -13.24%. And the median was 8.94%.

NL's ROE % is ranked worse than
77.2% of 1044 companies
in the Business Services industry
Industry Median: 8.61 vs NL: -0.62

NL Industries ROE % Historical Data

The historical data trend for NL Industries'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.

NL Industries Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.78 4.76 15.18 9.09 -0.61

NL Industries Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -6.51 -7.14 -3.37 -0.08 8.27
Competitive Comparison

For the Security & Protection Services subindustry, NL Industries'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.

NL Industries ROE % Distribution

For the Business Services industry and Industrials sector, NL Industries's ROE % distribution charts can be found below:

* The bar in red indicates where NL Industries's ROE % falls into.


NL Industries ROE % Calculation

NL Industries's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-2.308/( (382.15+369.812)/ 2 )
=-2.308/375.981
=-0.61 %

NL Industries's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=30.34/( (364.239+369.812)/ 2 )
=30.34/367.0255
=8.27 %

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

NL Industries  (NYSE:NL) 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. 2023 )
=Net Income/Total Stockholders Equity
=30.34/367.0255
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(30.34 / 172.66)*(172.66 / 573.573)*(573.573 / 367.0255)
=Net Margin %*Asset Turnover*Equity Multiplier
=17.57 %*0.301*1.5628
=ROA %*Equity Multiplier
=5.29 %*1.5628
=8.27 %

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. 2023 )
=Net Income/Total Stockholders Equity
=30.34/367.0255
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (30.34 / 33.148) * (33.148 / 18.24) * (18.24 / 172.66) * (172.66 / 573.573) * (573.573 / 367.0255)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9153 * 1.8173 * 10.56 % * 0.301 * 1.5628
=8.27 %

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

NL Industries ROE % Related Terms

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

NL Industries (NL Industries) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » NL Industries Inc (NYSE:NL) » Definitions » ROE %
Comparable Companies
CIX MG BAER ICTSF RSKIA AGSS KSCP EVLV GFAI SUGP OSTO:ASSA B TSE:9735 ALLE SZSE:002236 MSA ADT OSTO:SECU B BCO REZI BRC
Traded in Other Exchanges
N/A
Address
5430 LBJ Freeway, Suite 1700, Dallas, TX, USA, 75240-2620
Website
https://www.nl-ind.com
NL Industries Inc operates in the component products industry through its majority-owned subsidiary, CompX International Inc. It manufactures engineered components that are sold to a range of industries, including recreational transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare, gas stations and vending equipment. CompX has three production facilities in the United States, through which it produces a precision ball bearing slide, security products, and ergonomic computer support systems. The company derives most of its revenue from Europe.
Executives
Kevin B Kramer director C/O STONERIGDGE INC., 9400 E. MARKET ST, WARREN OH 44484
Erica A. Austin officer: VP, Employee Benefits 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240
Kristin B Mccoy officer: EVP, Tax 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240
Amy A. Samford officer: Executive VP and CFO 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240-2620
Gouveia Randall Colin director 2225 W. CHANDLER BLVD.,, CHANDLER AZ 85224
Michael Shawn Simmons officer: Executive Vice President 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240-2620
Bart W Reichert officer: Vice President, Internal Audit 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240
Amy E. Ruf officer: Vice President and Controller 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240-2620
Darci B Scott officer: Vice President, Tax 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240
Bryan A. Hanley officer: Vice President and Treasurer 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240-2620
Patty S. Brinda officer: Vice President and Controller 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240
Patricia A. Kropp officer: VP Employee Benefits 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240-2620
Thomas P Stafford director C/O WACKENHUT CORP, 4200 WACKENHUT DRIVE #100, PALM BEACH GARDENS FL 33410-4243
Meredith W. Mendes director 2901 BUTTERFIELD ROAD, OAK BROOK IL 60523
Powers John Read Iii officer: VP and General Counsel 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240