CHSCHSCP.PFD -0.59% ROE % is 11.93% as of Feb. 2019, which is 54% below its 10-year median of 25.97. 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. CHS's annualized net income for the quarter that ended in Feb. 2019 was $995.06 Mil. CHS's average Total Stockholders Equity over the quarter that ended in Feb. 2019 was $8,338.31 Mil. Therefore, CHS's annualized ROE % for the quarter that ended in Feb. 2019 was 11.93%.
The historical rank and industry rank for CHS's ROE % or its related term are showing as below:
CHSCP.PFD'
s ROE % Range Over the Past 10 Years
Min: 5.57 Med: 25.97 Max: 33.69
Current: 5.57
During the past 13 years, CHS's highest ROE % was 33.69%. The lowest was 5.57%. And the median was 25.97%.
CHSCP.PFD's ROE % is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 6.735
vs CHSCP.PFD: 5.57
CHS (NAS:CHSCP.PFD) 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 (Feb. 2019) net income data. The Revenue data used here is four times the quarterly (Feb. 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.
CHS ROE % Related Terms
CHS ROE % Historical Data
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The historical data trend for CHS'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 Farm Products subindustry, CHS'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.
CHS ROE % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, CHS's ROE % distribution charts can be found below:
* The bar in red indicates where CHS'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 (Feb. 2019) net income data.
ROE % is displayed in the 30-year financial page.
CHS (CHSCP.PFD) has a ROE % of 11.93% as of Feb. 2019. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on CHS and its competitors. This is 54% below median its historical median of 25.97. Over the past decade, CHS's ROE % has ranged from 5.57 to 33.69.
Is CHS's ROE % too high?
CHS's current ROE % of 11.93% is 54% below median its 10-year median of 25.97. Over the past 10 years, this metric has ranged from a low of 5.57 to a high of 33.69. The Consumer Packaged Goods industry median ROE % is 6.74. CHS's value of 11.93% is 77.1% above this industry median.
How does CHS's ROE % compare to LNDC and LMNR?
CHS's ROE % of 11.93% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROE % is 6.74. CHS's value of 11.93% is 77.1% above this benchmark. Historically, CHS's own ROE % has ranged from 5.57 to 33.69 over the past decade. While the company's 10-year median is 25.97 vs. the industry median of 6.74, CHS 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 Consumer Packaged Goods company?
The median ROE % among Consumer Packaged Goods companies is 6.74, based on 1,916 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. CHS's current ROE % of 11.93% is 77.1% 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 CHS and its competitors. For the Consumer Packaged Goods industry, the median ROE % is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CHS's current ROE % is 11.93%, which is 54% below median its own 10-year median of 25.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CHS stock overvalued right now?
CHS (CHSCP.PFD) has a current ROE % of 11.93%. The current ROE % is 11.93%, which is 54% below median its 10-year median of 25.97 and 77.1% above the Consumer Packaged Goods industry median of 6.74. 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 CHS (CHSCP.PFD), the current ROE % is 11.93% as of Feb. 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.
CHS Inc is an integrated agricultural enterprise, that provides grain, food, and energy resources to businesses and consumers. Its Energy segment produces and provides wholesale distribution of petroleum products and transportation of those products. Its Ag segment, which is the key revenue driver, purchases and processes or resells grains and oilseeds; serves as a wholesaler and retailer of crop inputs; produces and markets ethanol. Its Nitrogen Production segment consists of equity method investment in CF Nitrogen, which entitles the purchase of up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Geographically, the company derives maximum revenue from North America and the rest from South America, Asia Pacific, Europe, Middle East, and Africa (EMEA).
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