The historical rank and industry rank for Redwood Monthlyome Fund's ROE % or its related term are showing as below:
BVPIF's ROE % is not ranked *
in the Asset Management industry.
Industry Median: 6.62 * Ranked among companies with meaningful ROE % only.
Redwood Monthlyome Fund (OTCPK:BVPIF) 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 two times the semi-annual (Dec. 2017) net income data. The Revenue data used here is two times the semi-annual (Dec. 2017) 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.
* 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 Asset Management subindustry, Redwood Monthlyome Fund'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.
Redwood Monthlyome Fund ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Redwood Monthlyome Fund's ROE % distribution charts can be found below:
* The bar in red indicates where Redwood Monthlyome Fund'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 two times the semi-annual (Dec. 2017) net income data.
ROE % is displayed in the 30-year financial page.
Redwood Monthlyome Fund (BVPIF) has a ROE % of 10.12% as of Dec. 2017. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Redwood Monthlyome Fund and its competitors.
Is Redwood Monthlyome Fund's ROE % too high?
Redwood Monthlyome Fund's current ROE % is 10.12%. The Asset Management industry median ROE % is 6.62. Redwood Monthlyome Fund's value of 10.12% is 52.9% above this industry median.
How does Redwood Monthlyome Fund's ROE % compare to MDLY and GARS?
Redwood Monthlyome Fund's ROE % of 10.12% can be compared against companies in the Asset Management industry. The industry median ROE % is 6.62. Redwood Monthlyome Fund's value of 10.12% is 52.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.62, based on 1,610 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. Redwood Monthlyome Fund's current ROE % of 10.12% is 52.9% 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 Redwood Monthlyome Fund and its competitors. For the Asset Management industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redwood Monthlyome Fund's current ROE % is 10.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood Monthlyome Fund stock overvalued right now?
Redwood Monthlyome Fund (BVPIF) has a current ROE % of 10.12%. The current ROE % is 10.12% and 52.9% above the Asset Management industry median of 6.62. 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 Redwood Monthlyome Fund (BVPIF), the current ROE % is 10.12% as of Dec. 2017. 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.
Redwood Monthly Income Fund is a closed-end investment trust. Its investment objectives are to provide Unitholders with the benefits of a high level of monthly income, together with the opportunity for capital appreciation. The Fund seeks to achieve its Investment Objectives through active asset and sector allocation and by investing in those income-producing securities that the Sub-Advisor believes represent the weighting to achieve the Investment Objectives. The Fund has exposure to a diversified portfolio consisting of income-producing securities, including but not limited to income trusts, dividend-paying common shares, convertible debt, preferred shares and investment-grade fixed income investments.
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