ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Gemfields's annualized net income for the quarter that ended in Dec. 2016 was £-22.47 Mil. Gemfields's average Total Stockholders Equity over the quarter that ended in Dec. 2016 was £187.82 Mil. Therefore, Gemfields's annualized ROE % for the quarter that ended in Dec. 2016 was -11.96%.
The historical rank and industry rank for Gemfields's ROE % or its related term are showing as below:
LSE:GEMA'
s ROE % Range Over the Past 10 Years
Min: -201.96 Med: 2.6 Max: 122.57
Current: -2.91
During the past 13 years, Gemfields's highest ROE % was 122.57%. The lowest was -201.96%. And the median was 2.60%.
LSE:GEMA's ROE % is not ranked
in the Metals & Mining industry.
Industry Median: -16.14
vs LSE:GEMA: -2.91
Gemfields (LSE:GEMA) 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 two times the semi-annual (Dec. 2016) net income data. The Revenue data used here is two times the semi-annual (Dec. 2016) 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.
Gemfields ROE % Related Terms
Gemfields ROE % Historical Data
* Premium members only.
The historical data trend for Gemfields'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 Other Precious Metals & Mining subindustry, Gemfields'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.
Gemfields ROE % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Gemfields's ROE % distribution charts can be found below:
* The bar in red indicates where Gemfields'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 two times the semi-annual (Dec. 2016) net income data.
ROE % is displayed in the 30-year financial page.
Gemfields (LSE:GEMA) has a ROE % of -11.96% as of Dec. 2016. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gemfields and its competitors.
Is Gemfields' ROE % too high?
Gemfields' current ROE % is -11.96%.
How does Gemfields' ROE % compare to competitors?
Gemfields' ROE % of -11.96% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?
A good ROE % depends on the Metals & Mining industry context. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Gemfields and its competitors. Gemfields's current ROE % is -11.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gemfields stock overvalued right now?
Gemfields (LSE:GEMA) has a current ROE % of -11.96%. The current ROE % is -11.96%. 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 Gemfields (LSE:GEMA), the current ROE % is -11.96% as of Dec. 2016. 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.
Gemfields PLC is a supplier of colored gemstones specializing in emeralds and amethysts from Zambia and rubies from Mozambique. The company's assets include Kagem emerald mine, Montepuez ruby mine, Kariba amethyst mine, Faberge, and it also has emerald, sapphire and ruby exploration projects at Colombia, Ethiopia, Sri Lanka, and Madagascar. Its segments consist of Zambia, Mozambique, United Kingdom, Faberge, and others. The company earns the majority of the revenue from the sale of rough and cut and polished gemstones as well as wholesale and retail sales of the gemstones and jewelry in the Faberge business.
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