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Hello Group (Hello Group) ROE % : 19.18% (As of Sep. 2023)


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What is Hello Group ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hello Group's annualized net income for the quarter that ended in Sep. 2023 was $300 Mil. Hello Group's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was $1,562 Mil. Therefore, Hello Group's annualized ROE % for the quarter that ended in Sep. 2023 was 19.18%.

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

MOMO' s ROE % Range Over the Past 10 Years
Min: -23.86   Med: 14.4   Max: 39.31
Current: 17.5

During the past 11 years, Hello Group's highest ROE % was 39.31%. The lowest was -23.86%. And the median was 14.40%.

MOMO's ROE % is ranked better than
82.55% of 556 companies
in the Interactive Media industry
Industry Median: -0.14 vs MOMO: 17.50

Hello Group ROE % Historical Data

The historical data trend for Hello Group'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.

Hello Group ROE % Chart

Hello Group Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.35 24.09 15.44 -23.59 13.36

Hello Group Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 16.96 15.05 14.90 20.93 19.18

Competitive Comparison of Hello Group's ROE %

For the Internet Content & Information subindustry, Hello Group'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.


Hello Group's ROE % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Hello Group's ROE % distribution charts can be found below:

* The bar in red indicates where Hello Group's ROE % falls into.



Hello Group ROE % Calculation

Hello Group's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=212.901/( (1640.155+1545.865)/ 2 )
=212.901/1593.01
=13.36 %

Hello Group's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=299.5/( (1538.763+1584.817)/ 2 )
=299.5/1561.79
=19.18 %

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


Hello Group  (NAS:MOMO) 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. 2023 )
=Net Income/Total Stockholders Equity
=299.5/1561.79
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(299.5 / 1667.792)*(1667.792 / 2208.8775)*(2208.8775 / 1561.79)
=Net Margin %*Asset Turnover*Equity Multiplier
=17.96 %*0.755*1.4143
=ROA %*Equity Multiplier
=13.56 %*1.4143
=19.18 %

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. 2023 )
=Net Income/Total Stockholders Equity
=299.5/1561.79
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (299.5 / 383.264) * (383.264 / 340.788) * (340.788 / 1667.792) * (1667.792 / 2208.8775) * (2208.8775 / 1561.79)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7814 * 1.1246 * 20.43 % * 0.755 * 1.4143
=19.18 %

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


Hello Group ROE % Related Terms

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


Hello Group (Hello Group) Business Description

Traded in Other Exchanges
Address
No. 1 Futongdong Street, 20th Floor, Block B, Tower 2, Wangjing SOHO, Chaoyang District, Beijing, CHN, 100102
Hello Group Inc provides mobile-based social networking services. It enables users to establish and expand social relationships based on location and interests. Its platform includes the Momo mobile application and a variety of related features, functionalities, tools, and services that it provides to users, customers, and platform partners. The company derives its revenue from live video services, value-added services, mobile marketing services, mobile games, and other services. It operates in three segments: Momo's service lines, Tantan's service lines, and QOOL's service lines out of which Momo's service lines segment derives the majority of revenue.

Hello Group (Hello Group) Headlines