Continental Coal (ASX:CCC) ROE %: -264.33% (As of Jun. 2014)


What is Continental Coal ROE %?

Continental Coal ASX:CCC ROE % is -264.33% as of Jun. 2014. The stock has 4 warning signs investors should review.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Continental Coal's annualized net income for the quarter that ended in Jun. 2014 was A$-29.01 Mil. Continental Coal's average Total Stockholders Equity over the quarter that ended in Jun. 2014 was A$10.98 Mil. Therefore, Continental Coal's annualized ROE % for the quarter that ended in Jun. 2014 was -264.33%.

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

ASX:CCC' s ROE % Range Over the Past 10 Years
Min: -158.73   Med: -76.07   Max: -59.57
Current: -158.73

During the past 4 years, Continental Coal's highest ROE % was -59.57%. The lowest was -158.73%. And the median was -76.07%.

ASX:CCC's ROE % is not ranked
in the Steel industry.
Industry Median: 3.69 vs ASX:CCC: -158.73

Continental Coal  (ASX:CCC) 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. 2014 )
=Net Income/Total Stockholders Equity
=-29.014/10.9765
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-29.014 / 60.218)*(60.218 / 154.7065)*(154.7065 / 10.9765)
=Net Margin %*Asset Turnover*Equity Multiplier
=-48.18 %*0.3892*14.0943
=ROA %*Equity Multiplier
=-18.75 %*14.0943
=-264.33 %

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. 2014 )
=Net Income/Total Stockholders Equity
=-29.014/10.9765
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-29.014 / -37.944) * (-37.944 / -15.908) * (-15.908 / 60.218) * (60.218 / 154.7065) * (154.7065 / 10.9765)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7647 * 2.3852 * -26.42 % * 0.3892 * 14.0943
=-264.33 %

Note: The net income data used here is two times the semi-annual (Jun. 2014) net income data. The Revenue data used here is two times the semi-annual (Jun. 2014) 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.


Continental Coal ROE % Related Terms


Continental Coal ROE % Historical Data

* Premium members only.

The historical data trend for Continental Coal'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.

Continental Coal ROE % Chart

Continental Coal Annual Data
Trend Jun11 Jun12 Jun13 Jun14
ROE %
-24.84 -62.06 -78.82 -159.94

Continental Coal Semi-Annual Data
Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14
ROE % Get a 7-Day Free Trial -180.04 -23.37 -133.96 -120.32 -264.33

Continental Coal ROE % Competitor Comparison

For the Coking Coal subindustry, Continental Coal'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.


Continental Coal ROE % vs Steel Industry

For the Steel industry and Basic Materials sector, Continental Coal's ROE % distribution charts can be found below:

* The bar in red indicates where Continental Coal's ROE % falls into.



Continental Coal ROE % Calculation

Continental Coal's annualized ROE % for the fiscal year that ended in Jun. 2014 is calculated as

ROE %=Net Income (A: Jun. 2014 )/( (Total Stockholders Equity (A: Jun. 2013 )+Total Stockholders Equity (A: Jun. 2014 ))/ count )
=-30.295/( (34.207+3.675)/ 2 )
=-30.295/18.941
=-159.94 %

Continental Coal's annualized ROE % for the quarter that ended in Jun. 2014 is calculated as

ROE %=Net Income (Q: Jun. 2014 )/( (Total Stockholders Equity (Q: Dec. 2013 )+Total Stockholders Equity (Q: Jun. 2014 ))/ count )
=-29.014/( (18.278+3.675)/ 2 )
=-29.014/10.9765
=-264.33 %

* 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 two times the semi-annual (Jun. 2014) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -264.33% mean?
Continental Coal (ASX:CCC) has a ROE % of -264.33% as of Jun. 2014. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Continental Coal and its competitors.
Is Continental Coal's ROE % too high?
Continental Coal's current ROE % is -264.33%.
How does Continental Coal's ROE % compare to competitors?
Continental Coal's ROE % of -264.33% can be compared against companies in the Steel industry. The industry median ROE % is 3.69. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Steel company?
The median ROE % among Steel companies is 3.69, based on 622 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Continental Coal and its competitors. For the Steel industry, the median ROE % is 3.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Continental Coal's current ROE % is -264.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Continental Coal stock overvalued right now?
Continental Coal (ASX:CCC) has a current ROE % of -264.33%. The current ROE % is -264.33%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Continental Coal (ASX:CCC), the current ROE % is -264.33% as of Jun. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Continental Coal Business Description

Address 9th Floor, Fredman Towers, 13 Fredman Drive, Sandton, ZAF, 2196
Continental Coal Ltd is a coal exploration and development company. It is engaged in producing, development and exploration of coal in its projects located in South Africa's coal fields. Its three main operating mines are Vlakvarkfontein, Ferreira and Penumbra mine. Its development projects include De Wittekrans development project; and exploration projects, such as Vaalbank, Leiden and Knapdaar in South Africa, as well as Kweneng and Serowe exploration projects in Botswana.