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AdvancePierre Foods Holdings (FRA:1AC) ROE % : Negative Equity% (As of Mar. 2017)


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What is AdvancePierre Foods Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. AdvancePierre Foods Holdings's annualized net income for the quarter that ended in Mar. 2017 was €105 Mil. AdvancePierre Foods Holdings's average Total Stockholders Equity over the quarter that ended in Mar. 2017 was €-274 Mil. Therefore, AdvancePierre Foods Holdings's annualized ROE % for the quarter that ended in Mar. 2017 was Negative Equity%.

The historical rank and industry rank for AdvancePierre Foods Holdings's ROE % or its related term are showing as below:

FRA:1AC's ROE % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 6.3
* Ranked among companies with meaningful ROE % only.

AdvancePierre Foods Holdings ROE % Historical Data

The historical data trend for AdvancePierre Foods Holdings'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.

* Premium members only.

AdvancePierre Foods Holdings ROE % Chart

AdvancePierre Foods Holdings Annual Data
Trend Dec13 Dec14 Dec15 Dec16
ROE %
- - Negative Equity Negative Equity

AdvancePierre Foods Holdings Quarterly Data
Dec13 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Negative Equity Negative Equity Negative Equity Negative Equity Negative Equity

Competitive Comparison of AdvancePierre Foods Holdings's ROE %

For the Packaged Foods subindustry, AdvancePierre Foods Holdings'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.


AdvancePierre Foods Holdings's ROE % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, AdvancePierre Foods Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where AdvancePierre Foods Holdings's ROE % falls into.



AdvancePierre Foods Holdings ROE % Calculation

AdvancePierre Foods Holdings's annualized ROE % for the fiscal year that ended in Dec. 2016 is calculated as

ROE %=Net Income (A: Dec. 2016 )/( (Total Stockholders Equity (A: Dec. 2015 )+Total Stockholders Equity (A: Dec. 2016 ))/ count )
=129.201/( (-392.194+-285.539)/ 2 )
=129.201/-338.8665
=Negative Equity %

AdvancePierre Foods Holdings's annualized ROE % for the quarter that ended in Mar. 2017 is calculated as

ROE %=Net Income (Q: Mar. 2017 )/( (Total Stockholders Equity (Q: Dec. 2016 )+Total Stockholders Equity (Q: Mar. 2017 ))/ count )
=105.496/( (-285.539+-262.858)/ 2 )
=105.496/-274.1985
=Negative Equity %

* 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. 2017) net income data. ROE % is displayed in the 30-year financial page.

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.


AdvancePierre Foods Holdings  (FRA:1AC) 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: Mar. 2017 )
=Net Income/Total Stockholders Equity
=105.496/-274.1985
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(105.496 / 1506.208)*(1506.208 / 1189.387)*(1189.387 / -274.1985)
=Net Margin %*Asset Turnover*Equity Multiplier
=7 %*1.2664*N/A
=ROA %*Equity Multiplier
=8.86 %*N/A
=Negative Equity %

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: Mar. 2017 )
=Net Income/Total Stockholders Equity
=105.496/-274.1985
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (105.496 / 174.852) * (174.852 / 226.984) * (226.984 / 1506.208) * (1506.208 / 1189.387) * (1189.387 / -274.1985)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6033 * 0.7703 * 15.07 % * 1.2664 * N/A
=Negative Equity %

Note: The net income data used here is four times the quarterly (Mar. 2017) net income data. The Revenue data used here is four times the quarterly (Mar. 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.


AdvancePierre Foods Holdings ROE % Related Terms

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AdvancePierre Foods Holdings (FRA:1AC) Business Description

Traded in Other Exchanges
N/A
Address
AdvancePierre Foods Holdings Inc was incorporated in Delaware on December 5, 2008 as Pierre Foods Holding Corporation and changed its name to AdvancePierre Foods Holdings, Inc., on March 16, 2016. The Company is a producer and distributor of value-added, ready-to-eat sandwiches, sandwich components and other entrées and snacks. It markets and distributes multiple product categories including ready-to-eat sandwiches, such as breakfast sandwiches, PB&J sandwiches and hamburgers; sandwich components, such as fully-cooked hamburger and chicken patties and Philly steaks; and other entrées and snacks, such as country fried steak, stuffed entrées, chicken tenders and cinnamon dough bites. The Company sells its value-added products to the foodservice, retail and convenience channels, as well as in the industrial channel. It operates in four segments Foodservice, Retail, Convenience and Industrial. Its Foodservice customers include national and regional distributors, who sells Company's products to end-customers including restaurant operators, schools, U.S. military and grocery deli counters. Its Retail segment serves an array of retail customers including national and regional grocery chains, major warehouse club stores, mass retailers and dollar stores. The Convenience segment represents outlet for ready-to-eat sandwiches and includes sales to vending providers. Industrial segment consists of sales to other food producers under short-term co-manufacturing agreements. Its competitors include American Food Group, CTI, Allied Specialty Foods, Devault Foods, Lopez Foods and JTM Food Group.

AdvancePierre Foods Holdings (FRA:1AC) Headlines

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