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KapStone Paper And Packaging (KapStone Paper And Packaging) ROE % : 23.24% (As of Sep. 2018)


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What is KapStone Paper And Packaging ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. KapStone Paper And Packaging's annualized net income for the quarter that ended in Sep. 2018 was $290 Mil. KapStone Paper And Packaging's average Total Stockholders Equity over the quarter that ended in Sep. 2018 was $1,248 Mil. Therefore, KapStone Paper And Packaging's annualized ROE % for the quarter that ended in Sep. 2018 was 23.24%.

The historical rank and industry rank for KapStone Paper And Packaging's ROE % or its related term are showing as below:

KS's ROE % is not ranked *
in the Forest Products industry.
Industry Median: 4.04
* Ranked among companies with meaningful ROE % only.

KapStone Paper And Packaging ROE % Historical Data

The historical data trend for KapStone Paper And Packaging'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.

KapStone Paper And Packaging ROE % Chart

KapStone Paper And Packaging Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.51 23.81 13.11 9.86 23.86

KapStone Paper And Packaging Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 12.85 72.09 11.36 17.85 23.24

Competitive Comparison of KapStone Paper And Packaging's ROE %

For the Paper & Paper Products subindustry, KapStone Paper And Packaging'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.


KapStone Paper And Packaging's ROE % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, KapStone Paper And Packaging's ROE % distribution charts can be found below:

* The bar in red indicates where KapStone Paper And Packaging's ROE % falls into.



KapStone Paper And Packaging ROE % Calculation

KapStone Paper And Packaging'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 )
=243.503/( (904.33+1137.014)/ 2 )
=243.503/1020.672
=23.86 %

KapStone Paper And Packaging's annualized ROE % for the quarter that ended in Sep. 2018 is calculated as

ROE %=Net Income (Q: Sep. 2018 )/( (Total Stockholders Equity (Q: Jun. 2018 )+Total Stockholders Equity (Q: Sep. 2018 ))/ count )
=290.044/( (1214.499+1281.846)/ 2 )
=290.044/1248.1725
=23.24 %

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


KapStone Paper And Packaging  (NYSE:KS) 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. 2018 )
=Net Income/Total Stockholders Equity
=290.044/1248.1725
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(290.044 / 3574.38)*(3574.38 / 3380.835)*(3380.835 / 1248.1725)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.11 %*1.0572*2.7086
=ROA %*Equity Multiplier
=8.57 %*2.7086
=23.24 %

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. 2018 )
=Net Income/Total Stockholders Equity
=290.044/1248.1725
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (290.044 / 378.86) * (378.86 / 445.424) * (445.424 / 3574.38) * (3574.38 / 3380.835) * (3380.835 / 1248.1725)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7656 * 0.8506 * 12.46 % * 1.0572 * 2.7086
=23.24 %

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


KapStone Paper And Packaging ROE % Related Terms

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


KapStone Paper And Packaging (KapStone Paper And Packaging) Business Description

Traded in Other Exchanges
N/A
Address
KapStone Paper and Packaging Corp produces and sells containerboard, corrugated products, and specialty paper. The company organizes itself into two segments based on function: paper and packaging and distribution. The paper and packaging segment, which generates the majority of revenue, sells packaging products primarily to food and beverage manufacturers and retailers. The segment also sells specialty paper products. The distribution segment operates a packaging materials distribution business under the Victory and Golden State Container trade names. The vast majority of revenue comes from the United States.
Executives
Paula H Cholmondeley director 221 W PHILADELPHIA ST, SUITE 60W, YORK PA 17401-2991
Matthew H Paull director MCDONALDS CORP, 2915 JORIE BLVD, OAK BROOK IL 60523
Roger W Stone director, officer: Executive Chairman KAPSTONE PAPER & PKG. CORP., 1101 SKOKIE BOULEVARD, STE 300, NORTHBROOK IL 60062-6141
Robert J Bahash director 1221 AVENUE OF THE AMERICAS, NEW YORK NY 10020
David P Storch director C/O AAR CORP, 1111 NICHOLAS BLVD, 1111 NICHOLAS BLVD IL 60007
Kathryn D. Ingraham officer: VP, Secy & Gen Counsel KAPSTONE PAPER AND PACKAGING CORPORATION, 1101 SKOKIE BLVD., STE. 300, NORTHBROOK IL 60062
Brian R Gamache director
Randy J. Nebel officer: Exec. VP. Integrated Packaging KAPSTONE PAPER AND PACKAGING CORP. 1101 SKOKIE BLVD., SUITE 300 NORTHBROOK IL 60062
Andrea K Tarbox officer: Exec. VP and CFO ONE NORTHFIELD PLAZA, STE. 480, NORTHFIELD IL 60093
Maurice S Reznik director C/O MAIDENFORM BRANDS, INC., 154 AVENUE E, BAYONNE NJ 07002
Jonathan R Furer director 45 PARK STREET, TENAFLY NJ 07670
S Jay Stewart director 100 NORTH RIVERSIDE PLAZA, CHICAGO IL 60606
Harvey Hanerfeld 10 percent owner 1919 PENNSYLVANIA AVENUE NW, SUITE 725, WASHINGTON DC 20006
Ned L Sherwood 10 percent owner 54 MORRIS LN, SCARSDALE NY 10583
Jonathan M Glaser 10 percent owner 11601 WILSHIRE BLVD., SUITE 2180, LOS ANGELES CA 90025

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