CelgeneBUE:CELG 10 ROE % is 67.25% as of Sep. 2019, which is 160% above its 10-year median of 25.87. GuruFocus rates BUE:CELG with a GF Score™ of 10/100. The stock has 1 warning sign investors should review.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Celgene's annualized net income for the quarter that ended in Sep. 2019 was ARS378,283.46 Mil. Celgene's average Total Stockholders Equity over the quarter that ended in Sep. 2019 was ARS562,523.10 Mil. Therefore, Celgene's annualized ROE % for the quarter that ended in Sep. 2019 was 67.25%.
The historical rank and industry rank for Celgene's ROE % or its related term are showing as below:
BUE:CELG'
s ROE % Range Over the Past 10 Years
Min: 16.97 Med: 25.87 Max: 61.86
Current: 71.15
During the past 13 years, Celgene's highest ROE % was 61.86%. The lowest was 16.97%. And the median was 25.87%.
BUE:CELG's ROE % is not ranked
in the Drug Manufacturers industry.
Industry Median: 6
vs BUE:CELG: 71.15
Celgene (BUE:CELG) 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:
Note:
The net income data used here is four times the quarterly (Sep. 2019) net income data. The Revenue data used here is four times the quarterly (Sep. 2019) 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.
Celgene ROE % Related Terms
Celgene ROE % Historical Data
* Premium members only.
The historical data trend for Celgene'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.
For the Drug Manufacturers - General subindustry, Celgene'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.
Celgene ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Celgene's ROE % distribution charts can be found below:
* The bar in red indicates where Celgene's ROE % falls into.
* 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. 2019) net income data.
ROE % is displayed in the 30-year financial page.
Celgene (BUE:CELG) has a ROE % of 67.25% as of Sep. 2019. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Celgene and its competitors. This is 160% above median its historical median of 25.87. Over the past decade, Celgene's ROE % has ranged from 16.97 to 61.86.
Is Celgene's ROE % too high?
Celgene's current ROE % of 67.25% is 160% above median its 10-year median of 25.87. Over the past 10 years, this metric has ranged from a low of 16.97 to a high of 61.86. The Drug Manufacturers industry median ROE % is 6.00. Celgene's value of 67.25% is 1020.8% above this industry median. Overall, Celgene has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Celgene's ROE % compare to GILD and BIIB?
Celgene's ROE % of 67.25% can be compared against companies in the Drug Manufacturers industry. The industry median ROE % is 6.00. Celgene's value of 67.25% is 1020.8% above this benchmark. Historically, Celgene's own ROE % has ranged from 16.97 to 61.86 over the past decade. While the company's 10-year median is 25.87 vs. the industry median of 6.00, Celgene has consistently been above the industry average. 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 Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 6.00, based on 935 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. Celgene's current ROE % of 67.25% is 1020.8% above the industry median. 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 Celgene and its competitors. For the Drug Manufacturers industry, the median ROE % is 6.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Celgene's current ROE % is 67.25%, which is 160% above median its own 10-year median of 25.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Celgene stock overvalued right now?
Celgene (BUE:CELG) has a current ROE % of 67.25%. The current ROE % is 67.25%, which is 160% above median its 10-year median of 25.87 and 1020.8% above the Drug Manufacturers industry median of 6.00. Celgene's overall GF Score™ is 10/100 with 1 warning sign to review. 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 Celgene (BUE:CELG), the current ROE % is 67.25% as of Sep. 2019. 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.
Celgene is a biopharmaceutical firm that discovers, develops, and markets therapeutics for the treatment of cancer and immunological diseases. Celgene markets Thalomid and Pomalyst to treat multiple myeloma and Revlimid, a less toxic thalidomide derivative, to treat myelodysplastic syndromes, multiple myeloma, and mantle cell lymphoma. Acquisitions have brought MDS drug Vidaza, T-cell lymphoma drug Istodax, and cancer drug Abraxane. The firm's first immunology drug, Otezla, was approved in the U.S. in 2014. Pending acquisitions of Juno and Impact bring additional drugs for Celgene's blood cancer pipeline.
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