Cabela′s (Cabela′s) ROE %

: 5.52% (As of Jun. 2017)

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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Cabela′s's annualized net income for the quarter that ended in Jun. 2017 was $113 Mil. Cabela′s's average Total Stockholders Equity over the quarter that ended in Jun. 2017 was $2,055 Mil. Therefore, Cabela′s's annualized ROE % for the quarter that ended in Jun. 2017 was 5.52%.

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

CAB's ROE % is not ranked ^*
in the Retail - Cyclical industry.
Industry Median: 6.03
* Ranked among companies with meaningful ROE % only.

Cabela′s ROE % Historical Data

The historical data trend for Cabela′s'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.

Cabela′s Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROE %

13.57

15.05

11.78

10.39

7.65

Cabela′s Quarterly Data
	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17
ROE %																7.95	5.82	11.71	3.77	5.52

Competitive Comparison

For the Specialty Retail subindustry, Cabela′s'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.

Cabela′s ROE % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Cabela′s's ROE % distribution charts can be found below:

* The bar in red indicates where Cabela′s's ROE % falls into.

Cabela′s ROE % Calculation

Cabela′s's annualized ROE % for the fiscal year that ended in Dec. 2016 is calculated as

ROE %	=	Net Income (A: Dec. 2016 )	/	( (Total Stockholders Equity (A: Dec. 2015 )	+	Total Stockholders Equity (A: Dec. 2016 ))	/ count )
	=	146.947	/	( (1828.643	+	2011.599)	/ 2 )
	=	146.947	/	1920.121
	=	7.65 %

Cabela′s's annualized ROE % for the quarter that ended in Jun. 2017 is calculated as

ROE %	=	Net Income (Q: Jun. 2017 )	/	( (Total Stockholders Equity (Q: Mar. 2017 )	+	Total Stockholders Equity (Q: Jun. 2017 ))	/ count )
	=	113.392	/	( (2034.076	+	2075.847)	/ 2 )
	=	113.392	/	2054.9615
	=	5.52 %

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. 2017) net income data. ROE % is displayed in the 30-year financial page.

Cabela′s (NYSE:CAB) 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. 2017 )
=	Net Income	/	Total Stockholders Equity
=	113.392	/	2054.9615
=	(Net Income / Revenue )	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(113.392 / 3561.768)	*	(3561.768 / 8593.071)	*	(8593.071 / 2054.9615)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	3.18 %	*	0.4145	*	4.1816
=	ROA %	*	Equity Multiplier
=	1.32 %	*	4.1816
=	5.52 %

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. 2017 )
=	Net Income	/	Total Stockholders Equity
=	113.392	/	2054.9615
=	(Net Income / Pre-Tax Income)	*	(Pre-Tax Income / Operating Income)	*	(Operating Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(113.392 / 201.068)	*	(201.068 / 228.18)	*	(228.18 / 3561.768)	*	(3561.768 / 8593.071)	*	(8593.071 / 2054.9615)
=	Tax Burden	*	Interest Burden	*	Operating Margin %	*	Asset Turnover	*	Equity Multiplier
=	0.5639	*	0.8812	*	6.41 %	*	0.4145	*	4.1816
=	5.52 %

Note: The net income data used here is four times the quarterly (Jun. 2017) net income data. The Revenue data used here is four times the quarterly (Jun. 2017) 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.

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.

Cabela′s ROE % Related Terms

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Cabela′s (Cabela′s) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Cabela′s Inc (NYSE:CAB) » Definitions » ROE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.cabelas.com

Cabela's Inc was founded in 1961. The Company is a specialty retailer, and the direct marketer, of hunting, fishing, camping, and related outdoor merchandise. It also issues Cabela's CLUB Visa credit card, which serves as its customer loyalty rewards program. The Company operates in four segments Retail, Direct, Financial Services, and Corporate Overhead and Other. In retail segment the Company operated 77 retail stores, 68 stores in 36 states and nine stores in six Canadian provinces. During 2015, it opened 13 retail stores, 11 stores in the United States and two in Canada. It has two basic store formats. Its legacy stores refer to traditional retail stores that opened in August 2008 and earlier. It has 28 traditional, or legacy, retail stores, which offers a tourist-type experience. Its retail stores often attract the construction and development of hotels, restaurants, and other retail establishments adjacent to these stores. The Direct segment sells products through its e-commerce websites (Cabelas.com and Cabelas.ca) and direct mail catalogs. It markets its products through websites, mobile devices, and its print catalog distributions. The Financial Services segment provides customers with a rewards program that enhances revenue, operating profitability, and customer loyalty in its Retail and Direct businesses. Through its wholly-owned bank subsidiary, World's Foremost Bank, it issues and manages the Cabela's CLUB Visa credit card, a rewards based credit card program. The Company's product assortments includes merchandise and equipment for hunting, fishing, marine use, camping, and recreational sport shooting, along with casual and outdoor apparel and footwear, optics, vehicle accessories, and gifts and home furnishings with an outdoor theme. The Corporate Overhead and Other segment includes the value of unredeemed points earned that are associated with the Company's loyalty rewards programs for Cabela's CLUB issued credit cards, net of the estimated costs of the points; amounts received from outfitter services; real estate rental income; land sales; and fees earned from a travel business and other complementary business services. The Company competes with the outdoor recreation and casual apparel and footwear markets. It competes directly or indirectly with other broad-line merchants, large-format sporting goods stores and chains, mass merchandisers, warehouse clubs, discount and department stores, small specialty retailers, and catalog and Internet-based retailers.

Executives

James F Wright	director	TRACTOR SUPPLY COMPANY, 200 POWELL PLACE, BRENTWOOD TN 37027
Thomas L Millner	director, officer: Chief Executive Officer
Beth M Pritchard	director	BORDERS GROUP INC, 100 PHOENIX DRIVE, ANN ARBOR MI 48108
Peter S Swinburn	director	440 S. CHURCH STREET, SUITE 700, CHARLOTTE NY 28202
Donna M Milrod	director	60 WALL STREET, 42ND FLOOR, NEW YORK NY 10005
Michael R Mccarthy	director	1601 DODGE ST, SUITE 3800, OMAHA NE 68102
Scott K Williams	officer: PRESIDENT	170 COUNTRYSIDE DRIVE, P.O. BOX 409, BELLEVILLE WI 53508
Theodore M Armstrong	director	7730 CARONDELET, SUITE 103, ST. LOUIS MO 63105
Ralph W Castner	officer: EXECUTIVE VICE PRESIDENT & CFO	ONE CABELA DRIVE, SIDNEY NE 69160
Reuben Mark	director	300 PARK AVENUE, NEW YORK NY 10022
Stephen Murray	director	CCMP CAPITAL ADVISORS, LLC, 245 PARK AVENUE, NEW YORK NY 10067
Michael Callahan	officer: Senior Vice President	ONE CABELA DRIVE, SIDNEY NE 69160
David Roehr	officer: Executive Vice President	ONE CABELA DRIVE, SIDNEY NE 69160
Mccarthy Group Inc	10 percent owner	1601 DODGE ST, SUITE 3800, OMAHA NE 68102
Fulcrum Growth Partners Llc	10 percent owner	1125 SOUTH 103RD STREET, #450, OMAHA NE 68124