The historical rank and industry rank for HighCom Global Security's ROE % or its related term are showing as below:
HCGS's ROE % is not ranked *
in the Business Services industry.
Industry Median: 8.095 * Ranked among companies with meaningful ROE % only.
HighCom Global Security (OTCPK:HCGS) 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 (Dec. 2018) net income data. The Revenue data used here is four times the quarterly (Dec. 2018) 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 Security & Protection Services subindustry, HighCom Global Security'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.
HighCom Global Security ROE % vs Business Services Industry
For the Business Services industry and Industrials sector, HighCom Global Security's ROE % distribution charts can be found below:
* The bar in red indicates where HighCom Global Security'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 (Dec. 2018) net income data.
ROE % is displayed in the 30-year financial page.
HighCom Global Security (HCGS) has a ROE % of 2.35% as of Dec. 2018. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on HighCom Global Security and its competitors.
Is HighCom Global Security's ROE % too high?
HighCom Global Security's current ROE % is 2.35%. The Business Services industry median ROE % is 8.10. HighCom Global Security's value of 2.35% is 71% below this industry median.
How does HighCom Global Security's ROE % compare to DTII and UUU?
HighCom Global Security's ROE % of 2.35% can be compared against companies in the Business Services industry. The industry median ROE % is 8.10. HighCom Global Security's value of 2.35% is 71% below 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 Business Services company?
The median ROE % among Business Services companies is 8.10, based on 1,058 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. HighCom Global Security's current ROE % of 2.35% is 71% 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 HighCom Global Security and its competitors. For the Business Services industry, the median ROE % is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HighCom Global Security's current ROE % is 2.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HighCom Global Security stock overvalued right now?
HighCom Global Security (HCGS) has a current ROE % of 2.35%. The current ROE % is 2.35% and 71% below the Business Services industry median of 8.10. 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 HighCom Global Security (HCGS), the current ROE % is 2.35% as of Dec. 2018. 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.
HighCom Global Security Inc is a provider of equipment and services for the security and defense industries. It acquires, manages and builds businesses which provide specialized, mission-critical solutions that address the needs of its customers. The company's businesses continuously develops solutions that enable customers to achieve their objectives. Its HighCom Armor division provides high performance and affordable body armor, personal protective equipment, and armor systems and related accessories, while its BlastGard division has patented BlastWrap technology that acts as a virtual tent to effectively mitigate blast effects and suppress post-blast fires.
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