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Blue Whale Acquisition I (NAS:BWCAW) 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 (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) 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 Shell Companies subindustry, Blue Whale Acquisition I'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.
Blue Whale Acquisition I ROE % vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Blue Whale Acquisition I's ROE % distribution charts can be found below:
* The bar in red indicates where Blue Whale Acquisition I'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 (Mar. 2023) net income data.
ROE % is displayed in the 30-year financial page.
Blue Whale Acquisition I (BWCAW) has a ROE % of 1.32% as of Mar. 2023. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Blue Whale Acquisition I and its competitors. This is 43% below median its historical median of 2.30. Over the past decade, Blue Whale Acquisition I's ROE % has ranged from 1.49 to 2.30.
Is Blue Whale Acquisition I's ROE % too high?
Blue Whale Acquisition I's current ROE % of 1.32% is 43% below median its 10-year median of 2.30. Over the past 10 years, this metric has ranged from a low of 1.49 to a high of 2.30. The Diversified Financial Services industry median ROE % is 1.75. Blue Whale Acquisition I's value of 1.32% is 24.6% below this industry median. Overall, Blue Whale Acquisition I has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does Blue Whale Acquisition I's ROE % compare to NRAC and DMYS?
Blue Whale Acquisition I's ROE % of 1.32% can be compared against companies in the Diversified Financial Services industry. The industry median ROE % is 1.75. Blue Whale Acquisition I's value of 1.32% is 24.6% below this benchmark. Historically, Blue Whale Acquisition I's own ROE % has ranged from 1.49 to 2.30 over the past decade. While the company's 10-year median is 2.30 vs. the industry median of 1.75, Blue Whale Acquisition I has consistently been below 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 Diversified Financial Services company?
The median ROE % among Diversified Financial Services companies is 1.75, based on 461 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. Blue Whale Acquisition I's current ROE % of 1.32% is 24.6% below 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 Blue Whale Acquisition I and its competitors. For the Diversified Financial Services industry, the median ROE % is 1.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Blue Whale Acquisition I's current ROE % is 1.32%, which is 43% below median its own 10-year median of 2.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Blue Whale Acquisition I stock overvalued right now?
Blue Whale Acquisition I (BWCAW) has a current ROE % of 1.32%. The current ROE % is 1.32%, which is 43% below median its 10-year median of 2.30 and 24.6% below the Diversified Financial Services industry median of 1.75. Blue Whale Acquisition I's overall GF Score™ is 24/100 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 Blue Whale Acquisition I (BWCAW), the current ROE % is 1.32% as of Mar. 2023. 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.
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