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FedNat Holding Co (FedNat Holding Co) ROE % : -477.81% (As of Mar. 2022)


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What is FedNat Holding Co ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. FedNat Holding Co's annualized net income for the quarter that ended in Mar. 2022 was $-175.7 Mil. FedNat Holding Co's average Total Stockholders Equity over the quarter that ended in Mar. 2022 was $36.8 Mil. Therefore, FedNat Holding Co's annualized ROE % for the quarter that ended in Mar. 2022 was -477.81%.

The historical rank and industry rank for FedNat Holding Co's ROE % or its related term are showing as below:

FNHCQ's ROE % is not ranked *
in the Insurance industry.
Industry Median: 10.08
* Ranked among companies with meaningful ROE % only.

FedNat Holding Co ROE % Historical Data

The historical data trend for FedNat Holding Co'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.

FedNat Holding Co ROE % Chart

FedNat Holding Co Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.74 6.99 0.44 -38.42 -94.78

FedNat Holding Co Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 -50.79 -164.12 -116.87 -52.49 -477.81

Competitive Comparison of FedNat Holding Co's ROE %

For the Insurance - Property & Casualty subindustry, FedNat Holding Co'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.


FedNat Holding Co's ROE % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, FedNat Holding Co's ROE % distribution charts can be found below:

* The bar in red indicates where FedNat Holding Co's ROE % falls into.



FedNat Holding Co ROE % Calculation

FedNat Holding Co's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=-103.1/( (158.16+59.386)/ 2 )
=-103.1/108.773
=-94.78 %

FedNat Holding Co's annualized ROE % for the quarter that ended in Mar. 2022 is calculated as

ROE %=Net Income (Q: Mar. 2022 )/( (Total Stockholders Equity (Q: Dec. 2021 )+Total Stockholders Equity (Q: Mar. 2022 ))/ count )
=-175.656/( (59.386+14.139)/ 2 )
=-175.656/36.7625
=-477.81 %

* 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 (Mar. 2022) net income data. ROE % is displayed in the 30-year financial page.


FedNat Holding Co  (OTCPK:FNHCQ) 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: Mar. 2022 )
=Net Income/Total Stockholders Equity
=-175.656/36.7625
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-175.656 / 168.94)*(168.94 / 1307.3155)*(1307.3155 / 36.7625)
=Net Margin %*Asset Turnover*Equity Multiplier
=-103.98 %*0.1292*35.5611
=ROA %*Equity Multiplier
=-13.43 %*35.5611
=-477.81 %

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: Mar. 2022 )
=Net Income/Total Stockholders Equity
=-175.656/36.7625
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / EBIT) * (EBIT / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-175.656 / -179.808) * (-179.808 / -170.608) * (-170.608 / 168.94) * (168.94 / 1307.3155) * (1307.3155 / 36.7625)
= Tax Burden * Interest Burden * EBIT Margin % * Asset Turnover * Equity Multiplier
= 0.9769 * 1.0539 * -100.99 % * 0.1292 * 35.5611
=-477.81 %

Note: The net income data used here is four times the quarterly (Mar. 2022) net income data. The Revenue data used here is four times the quarterly (Mar. 2022) 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.


FedNat Holding Co ROE % Related Terms

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


FedNat Holding Co (FedNat Holding Co) Business Description

Traded in Other Exchanges
N/A
Address
14050 N.W. 14th Street, Suite 180, Sunrise, FL, USA, 33323
FedNat Holding Co is a provider of property and liability insurance products in the United States. It offers underwriting services to homeowner's multi-peril, personal automobile, commercial general liability, federal flood, and other lines of insurance. The company markets and distributes its own and third-party insurers' products, and other services through a network of independent and general agents. The segments of the company are Homeowners, Automobile and Other, of which a majority of the revenue is derived from the Homeowners segment. The Homeowners line of business consists of the homeowners and fire property and casualty insurance business.
Executives
David K. Patterson director 14050 N.W. 14TH STREET, SUITE 180, SUNRISE FL 33323
Roberta Nell Young director 23043 SUNFIELD DRIVE, BOCA RATON FL 33433
David W Michelson director 111 CONGRESSIONAL BLVD., SUITE 500, CARMEL IN 46032
Ronald Arthur Jordan officer: Chief Financial Officer 5817 CRUTCHFIELD FARM RD, OAK RIDGE NC 27310
Erick Anthony Fernandez officer: CAO 1537 MANTUA AVENUE, CORAL GABLES FL 33146
Thomas Alexander Rogers director 466 ROLLING ROAD, ROSEMONT PA 19010
Patrick Mccahill officer: Chief Operating Officer 14050 NW 14TH STREET, SUITE 180, SUNRISE FL 33323
Michael H Braun director, officer: Chief Executive Officer & Pres 14050 NW 14 STREET, SUITE 180, SUNRISE FL 33323
Bruce Simberg director, other: Chairman of the Board 3440 HOLLYWOOD BLVD 2ND FL, HOLLYWOOD FL 33021
Wilcox Richard W Jr director 7220 SW 6 STREET, PLANTATION FL 33317
Jenifer G Kimbrough director 14050 NW 14 STREET, SUITE 180, SUNRISE FL 33323
William Gorman Stewart director 4024 STEWART ROAD, BOX 159, STEVENSON MD 21153
Hale Partnership Fund, L.p. 10 percent owner 3335 PARK SOUTH STATION BLVD., CHARLOTTE NC 28210
Hale Steven A Ii 10 percent owner 5960 FAIRVIEW ROAD, SUITE 432, CHARLOTTE NC 28210
Hale Partnership Capital Management, Llc 10 percent owner 5960 FAIRVIEW ROAD, SUITE 432, CHARLOTTE NC 28210