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Continental Building Products (Continental Building Products) ROE % : 15.70% (As of Sep. 2019)


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What is Continental Building Products ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Continental Building Products's annualized net income for the quarter that ended in Sep. 2019 was $53.8 Mil. Continental Building Products's average Total Stockholders Equity over the quarter that ended in Sep. 2019 was $342.7 Mil. Therefore, Continental Building Products's annualized ROE % for the quarter that ended in Sep. 2019 was 15.70%.

The historical rank and industry rank for Continental Building Products's ROE % or its related term are showing as below:

CBPX's ROE % is not ranked *
in the Construction industry.
Industry Median: 6.71
* Ranked among companies with meaningful ROE % only.

Continental Building Products ROE % Historical Data

The historical data trend for Continental Building Products'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.

Continental Building Products ROE % Chart

Continental Building Products Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
ROE %
Get a 7-Day Free Trial 7.22 5.54 14.44 19.09 22.99

Continental Building Products Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 21.88 23.84 19.12 15.24 15.70

Competitive Comparison of Continental Building Products's ROE %

For the Building Products & Equipment subindustry, Continental Building Products'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.


Continental Building Products's ROE % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Continental Building Products's ROE % distribution charts can be found below:

* The bar in red indicates where Continental Building Products's ROE % falls into.



Continental Building Products ROE % Calculation

Continental Building Products's annualized ROE % for the fiscal year that ended in Dec. 2018 is calculated as

ROE %=Net Income (A: Dec. 2018 )/( (Total Stockholders Equity (A: Dec. 2017 )+Total Stockholders Equity (A: Dec. 2018 ))/ count )
=74.244/( (318.026+327.747)/ 2 )
=74.244/322.8865
=22.99 %

Continental Building Products's annualized ROE % for the quarter that ended in Sep. 2019 is calculated as

ROE %=Net Income (Q: Sep. 2019 )/( (Total Stockholders Equity (Q: Jun. 2019 )+Total Stockholders Equity (Q: Sep. 2019 ))/ count )
=53.792/( (335.788+349.615)/ 2 )
=53.792/342.7015
=15.70 %

* 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. 2019) net income data. ROE % is displayed in the 30-year financial page.


Continental Building Products  (NYSE:CBPX) 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. 2019 )
=Net Income/Total Stockholders Equity
=53.792/342.7015
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(53.792 / 509.756)*(509.756 / 668.2805)*(668.2805 / 342.7015)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.55 %*0.7628*1.95
=ROA %*Equity Multiplier
=8.05 %*1.95
=15.70 %

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. 2019 )
=Net Income/Total Stockholders Equity
=53.792/342.7015
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (53.792 / 69.708) * (69.708 / 73.124) * (73.124 / 509.756) * (509.756 / 668.2805) * (668.2805 / 342.7015)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7717 * 0.9533 * 14.34 % * 0.7628 * 1.95
=15.70 %

Note: The net income data used here is four times the quarterly (Sep. 2019) net income data. The Revenue data used here is four times the quarterly (Sep. 2019) 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.


Continental Building Products ROE % Related Terms

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


Continental Building Products (Continental Building Products) Business Description

Traded in Other Exchanges
N/A
Address
12950 Worldgate Drive, Suite 700, Herndon, VA, USA, 20170
Continental Building Products Inc manufactures gypsum wallboard and complementary finishing products for use in residential and commercial construction, as well as repair and remodeling markets. Brands include LiftLite, Mold Defense, and Weather Defense. The company sells its products to gypsum wallboard distributors, buying groups, wholesalers, and mass merchants. The company exclusively uses synthetic gypsum, which it purchases from power plants near its wallboard facilities, and has long-term take-or-pay agreements with its major suppliers. Continental operates primarily near major metropolitan areas in the eastern United States and eastern Canada.
Executives
Michael O Moore director 150 W CHURCH AVE, RUBY TUESDAY, INC., MARYVILLE TN 37801
Dennis Charles Schemm officer: SVP and CFO CONTINENTAL BUILDING PRODUCTS, 12950 WORLDGATE DRIVE, HERNDON VA 20170
Muhammad Shahbaz Malik officer: See Remarks 12950 WORLDGATE DRIVE, SUITE 700, HERNDON VA 20170
John P Grayken 10 percent owner 2711 NORTH HASKELL AVENUE SUITE 1700 DALLAS TX 75204
Grant Wilbeck director 12018 SUNRISE VALLEY DRIVE SUITE 600 RESTON VA 20191
Chadwick S. Suss director 12018 SUNRISE VALLEY DRIVE SUITE 600 RESTON VA 20191
Kyle S. Volluz director 12018 SUNRISE VALLEY DRIVE SUITE 600 RESTON VA 20191
Samuel D Loughlin director 12018 SUNRISE VALLEY DRIVE SUITE 600 RESTON VA 20191

Continental Building Products (Continental Building Products) Headlines

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