GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » ReAlpha Tech Corp (NAS:AIRE) » Definitions » ROE %

AIRE (ReAlpha Tech) ROE % : -37.52% (As of Sep. 2024)


View and export this data going back to 2023. Start your Free Trial

What is ReAlpha Tech ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ReAlpha Tech's annualized net income for the quarter that ended in Sep. 2024 was $-8.40 Mil. ReAlpha Tech's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $22.38 Mil. Therefore, ReAlpha Tech's annualized ROE % for the quarter that ended in Sep. 2024 was -37.52%.

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

AIRE' s ROE % Range Over the Past 10 Years
Min: -45.23   Med: 0   Max: 0
Current: -45.23

AIRE's ROE % is ranked worse than
94.64% of 1772 companies
in the Real Estate industry
Industry Median: 2.84 vs AIRE: -45.23

ReAlpha Tech ROE % Historical Data

The historical data trend for ReAlpha Tech'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.

ReAlpha Tech ROE % Chart

ReAlpha Tech Annual Data
Trend Apr21 Apr22
ROE %
- -

ReAlpha Tech Quarterly Data
Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 124.30 -107.13 -30.65 -25.99 -37.52

Competitive Comparison of ReAlpha Tech's ROE %

For the Real Estate Services subindustry, ReAlpha Tech'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.


ReAlpha Tech's ROE % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, ReAlpha Tech's ROE % distribution charts can be found below:

* The bar in red indicates where ReAlpha Tech's ROE % falls into.



ReAlpha Tech ROE % Calculation

ReAlpha Tech's annualized ROE % for the fiscal year that ended in Apr. 2022 is calculated as

ROE %=Net Income (A: Apr. 2022 )/( (Total Stockholders Equity (A: Apr. 2021 )+Total Stockholders Equity (A: Apr. 2022 ))/ count )
=-5.379/( (0.447+-5.332)/ 2 )
=-5.379/-2.4425
=N/A %

ReAlpha Tech's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=-8.396/( (22.205+22.548)/ 2 )
=-8.396/22.3765
=-37.52 %

* 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. 2024) net income data. ROE % is displayed in the 30-year financial page.


ReAlpha Tech  (NAS:AIRE) 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. 2024 )
=Net Income/Total Stockholders Equity
=-8.396/22.3765
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-8.396 / 1.356)*(1.356 / 29.414)*(29.414 / 22.3765)
=Net Margin %*Asset Turnover*Equity Multiplier
=-619.17 %*0.0461*1.3145
=ROA %*Equity Multiplier
=-28.54 %*1.3145
=-37.52 %

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: Sep. 2024 )
=Net Income/Total Stockholders Equity
=-8.396/22.3765
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-8.396 / -8.396) * (-8.396 / -6.76) * (-6.76 / 1.356) * (1.356 / 29.414) * (29.414 / 22.3765)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 1.242 * -498.53 % * 0.0461 * 1.3145
=-37.52 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) 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.


ReAlpha Tech ROE % Related Terms

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


ReAlpha Tech Business Description

Traded in Other Exchanges
Address
6515 Longshore Loop, Suite 100, Dublin, OH, USA, 43017
ReAlpha Tech Corp is a real estate technology company that develops and utilizes its artificial intelligence-focused technology stack to empower retail investor participation in short-term rental properties, which are real estate units listed for a rental term. It provides short-term rental investment opportunities to everyday investors. The company has developed technologies and tools that allow for analysis of short-term rental properties using AI to provide insight into that property's potential profitability and ways to increase such profitability; and has an app for investment into the properties that it purchased aimed at retail investors. The company's reportable segments are; Platform Services, which derives key revenue, and the Rental business segment.
Executives
Dimitrios Angelis director 100 CANAL POINTE BLVD., SUITE 108, PRINCETON NJ 08540
Giri Devanur director, 10 percent owner, officer: CEO and President 100 CANAL POINTE BLVD., SUITE 108, PRINCETON NJ 08540
Jorge Aldecoa officer: Chief Operating Officer 6515 LONGSHORE LOOP, #100, DUBLIN OH 43017
Michael J. Logozzo officer: Chief Financial Officer 6515 LONGSHORE LOOP, #100, DUBLIN OH 43017
Monaz Karkaria director 6515 LONGSHORE LOOP, #100, DUBLIN OH 43017
Balaji Swaminathan director 6515 LONGSHORE LOOP, #100, DUBLIN OH 43017
Brian D. Cole director 6515 LONGSHORE LOOP, #100, DUBLIN OH 43017