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Front Yard Residential (Front Yard Residential) ROE % : -73.90% (As of Sep. 2020)


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What is Front Yard Residential ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Front Yard Residential's annualized net income for the quarter that ended in Sep. 2020 was $-252.7 Mil. Front Yard Residential's average Total Stockholders Equity over the quarter that ended in Sep. 2020 was $341.9 Mil. Therefore, Front Yard Residential's annualized ROE % for the quarter that ended in Sep. 2020 was -73.90%.

The historical rank and industry rank for Front Yard Residential's ROE % or its related term are showing as below:

RESI' s ROE % Range Over the Past 10 Years
Min: -30.23   Med: -23   Max: 18.57
Current: -30.23

During the past 8 years, Front Yard Residential's highest ROE % was 18.57%. The lowest was -30.23%. And the median was -23.00%.

RESI's ROE % is not ranked
in the REITs industry.
Industry Median: 4.195 vs RESI: -30.23

Front Yard Residential ROE % Historical Data

The historical data trend for Front Yard Residential'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.

Front Yard Residential ROE % Chart

Front Yard Residential Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
ROE %
Get a 7-Day Free Trial -3.71 -22.63 -24.60 -23.45 -26.00

Front Yard Residential Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
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 -37.93 -29.09 -24.87 4.68 -73.90

Competitive Comparison of Front Yard Residential's ROE %

For the REIT - Residential subindustry, Front Yard Residential'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.


Front Yard Residential's ROE % Distribution in the REITs Industry

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

* The bar in red indicates where Front Yard Residential's ROE % falls into.



Front Yard Residential ROE % Calculation

Front Yard Residential's annualized ROE % for the fiscal year that ended in Dec. 2019 is calculated as

ROE %=Net Income (A: Dec. 2019 )/( (Total Stockholders Equity (A: Dec. 2018 )+Total Stockholders Equity (A: Dec. 2019 ))/ count )
=-105.391/( (471.392+339.259)/ 2 )
=-105.391/405.3255
=-26.00 %

Front Yard Residential's annualized ROE % for the quarter that ended in Sep. 2020 is calculated as

ROE %=Net Income (Q: Sep. 2020 )/( (Total Stockholders Equity (Q: Jun. 2020 )+Total Stockholders Equity (Q: Sep. 2020 ))/ count )
=-252.708/( (372.131+311.744)/ 2 )
=-252.708/341.9375
=-73.90 %

* 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. 2020) net income data. ROE % is displayed in the 30-year financial page.


Front Yard Residential  (NYSE:RESI) 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. 2020 )
=Net Income/Total Stockholders Equity
=-252.708/341.9375
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-252.708 / 227.776)*(227.776 / 2056.706)*(2056.706 / 341.9375)
=Net Margin %*Asset Turnover*Equity Multiplier
=-110.95 %*0.1107*6.0149
=ROA %*Equity Multiplier
=-12.28 %*6.0149
=-73.90 %

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. 2020 )
=Net Income/Total Stockholders Equity
=-252.708/341.9375
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-252.708 / -252.708) * (-252.708 / 5.044) * (5.044 / 227.776) * (227.776 / 2056.706) * (2056.706 / 341.9375)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * -50.1007 * 2.21 % * 0.1107 * 6.0149
=-73.90 %

Note: The net income data used here is four times the quarterly (Sep. 2020) net income data. The Revenue data used here is four times the quarterly (Sep. 2020) 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.


Front Yard Residential ROE % Related Terms

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


Front Yard Residential (Front Yard Residential) Business Description

Traded in Other Exchanges
N/A
Address
c/o Altisource Asset Management Corporation, 5100 Tamarind Reef, Christiansted, VIR, 00820
Front Yard Residential Corp is a real estate investment trust, which focuses on acquiring, owning and managing single-family rental properties throughout the United States. It acquires its single-family rental properties through the acquisition of sub-performing and non-performing loan portfolios. The company is managed by Altisource Asset Management Corporation, which has a management team with extensive industry experience in real estate, non-performing loan portfolios, and mortgage loan servicing. Geographically the firm has its property portfolio across the region of Alabama, Georgia, Hawaii, Louisiana, New Jersey, Pennsylvania, Texas, New York, Kentucky and in many other regions.
Executives
Agatecreek Llc 10 percent owner 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487
Scott Edward Burg 10 percent owner 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487
Deer Park Road Management Company, Lp 10 percent owner 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487
Deer Park Road Management Gp, Llc 10 percent owner 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487
Deer Park Road Corp 10 percent owner 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487
Michael David Craig-scheckman 10 percent owner 1195 BANGTAIL WAY, STEAMBOAT SPRINGS CO 80487
George G Ellison director, officer: Chief Executive Officer 402 STRAND STREET, FREDERIKSTED VI 00840-3531
Leland Abrams director C/O FRONT YARD RESIDENTIAL CORPORATION 5100 TAMARIND REEF CHRISTIANSTED VI 00820
Lazar Nikolic director C/O FRONT YARD RESIDENTIAL CORPORATION 5100 TAMARIND REEF CHRISTIANSTED VI 00820
George Whitfield Mcdowell director C/O FRONT YARD RESIDENTIAL CORPORATION 5100 TAMARIND REEF CHRISTIANSTED VI 00820
Wade J. Henderson director C/O ALTISOURCE RESIDENTIAL CORPORATION 36C STRAND STREET CHRISTIANSTED VI 00820
Rochelle R. Dobbs director C/O ALTISOURCE RESIDENTIAL CORPORATION 36C STRAND STREET CHRISTIANSTED VI 00820
Michael Graham Lubin officer: General Counsel and Secretary C/O ALTISOURCE ASSET MANAGEMENT 36C STRAND STREET CHRISTIANSTED VI 00820
Michael A. Eruzione director 402 STRAND STREET, C/O AAMC FREDERIKSTED, ST. CROIX VI 00840
Rene Dittrich officer: Chief Accounting Officer C/O ALTISOURCE ASSET MANAGEMENT, 36C STRAND STREET, CHRISTIANSTED VI 00820

Front Yard Residential (Front Yard Residential) Headlines

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