Egyptian Chemical Industries (CAI:EGCH) ROE %: 7.38% (As of Jun. 2015)


What is Egyptian Chemical Industries ROE %?

Egyptian Chemical Industries CAI:EGCH +3.42% ROE % is 7.38% as of Jun. 2015.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Egyptian Chemical Industries's annualized net income for the quarter that ended in Jun. 2015 was E£173.0 Mil. Egyptian Chemical Industries's average Total Stockholders Equity over the quarter that ended in Jun. 2015 was E£2,343.6 Mil. Therefore, Egyptian Chemical Industries's annualized ROE % for the quarter that ended in Jun. 2015 was 7.38%.

The historical rank and industry rank for Egyptian Chemical Industries's ROE % or its related term are showing as below:

CAI:EGCH's ROE % is not ranked *
in the Chemicals industry.
Industry Median: 5.195
* Ranked among companies with meaningful ROE % only.

Egyptian Chemical Industries  (CAI:EGCH) 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. 2015 )
=Net Income/Total Stockholders Equity
=173.034/2343.585
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(173.034 / 587.21)*(587.21 / 2821.511)*(2821.511 / 2343.585)
=Net Margin %*Asset Turnover*Equity Multiplier
=29.47 %*0.2081*1.2039
=ROA %*Equity Multiplier
=6.13 %*1.2039
=7.38 %

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. 2015 )
=Net Income/Total Stockholders Equity
=173.034/2343.585
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (173.034 / 215.4) * (215.4 / 36.65) * (36.65 / 587.21) * (587.21 / 2821.511) * (2821.511 / 2343.585)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8033 * 5.8772 * 6.24 % * 0.2081 * 1.2039
=7.38 %

Note: The net income data used here is two times the semi-annual (Jun. 2015) net income data. The Revenue data used here is two times the semi-annual (Jun. 2015) 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.

Egyptian Chemical Industries ROE % Related Terms

Egyptian Chemical Industries ROE % Historical Data

* Premium members only.

The historical data trend for Egyptian Chemical Industries'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.

Egyptian Chemical Industries ROE % Chart

Egyptian Chemical Industries Annual Data
Trend Dec11 Dec12
ROE %
0.00 0.00

Egyptian Chemical Industries Semi-Annual Data
Dec12 Jun14 Jun15
ROE % 0.00 13.88 7.38

Egyptian Chemical Industries ROE % Competitor Comparison

For the Chemicals subindustry, Egyptian Chemical Industries'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.

Egyptian Chemical Industries ROE % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Egyptian Chemical Industries's ROE % distribution charts can be found below:

* The bar in red indicates where Egyptian Chemical Industries's ROE % falls into.


Egyptian Chemical Industries ROE % Calculation

Egyptian Chemical Industries's annualized ROE % for the fiscal year that ended in Dec. 2012 is calculated as

ROE %=Net Income (A: Dec. 2012 )/( (Total Stockholders Equity (A: Dec. 2011 )+Total Stockholders Equity (A: Dec. 2012 ))/ count )
=0/( (0+1544.15)/ 1 )
=0/1544.15
=0.00 %

Egyptian Chemical Industries's annualized ROE % for the quarter that ended in Jun. 2015 is calculated as

ROE %=Net Income (Q: Jun. 2015 )/( (Total Stockholders Equity (Q: Jun. 2014 )+Total Stockholders Equity (Q: Jun. 2015 ))/ count )
=173.034/( (0+2343.585)/ 1 )
=173.034/2343.585
=7.38 %

* 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. 2015) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 7.38% mean?
Egyptian Chemical Industries (CAI:EGCH) has a ROE % of 7.38% as of Jun. 2015. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Egyptian Chemical Industries and its competitors.
Is Egyptian Chemical Industries' ROE % too high?
Egyptian Chemical Industries' current ROE % is 7.38%. The Chemicals industry median ROE % is 5.20. Egyptian Chemical Industries' value of 7.38% is 42.1% above this industry median.
How does Egyptian Chemical Industries' ROE % compare to competitors?
Egyptian Chemical Industries' ROE % of 7.38% can be compared against companies in the Chemicals industry. The industry median ROE % is 5.20. Egyptian Chemical Industries' value of 7.38% is 42.1% 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 a Chemicals company?
The median ROE % among Chemicals companies is 5.20, based on 1,580 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. Egyptian Chemical Industries's current ROE % of 7.38% is 42.1% 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 Egyptian Chemical Industries and its competitors. For the Chemicals industry, the median ROE % is 5.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Egyptian Chemical Industries's current ROE % is 7.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Egyptian Chemical Industries stock overvalued right now?
Egyptian Chemical Industries (CAI:EGCH) has a current ROE % of 7.38%. The current ROE % is 7.38% and 42.1% above the Chemicals industry median of 5.20. 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 Egyptian Chemical Industries (CAI:EGCH), the current ROE % is 7.38% as of Jun. 2015. 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.

Egyptian Chemical Industries Business Description

Address Aswan-Elsaad ELaaly Road, Aswan, EGY
Egyptian Chemical Industries manufactures various chemicals. The company's product portfolio comprises of Ammonium nitrate, Ferro-Silicon alloy, liquid Ammonium Nitrate, oxygen gas, Nitric Acid, Hydrochloric Acid, Silica fume, and Aqua- Ammonia.