ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. PGS Software's annualized net income for the quarter that ended in Sep. 2021 was zł45.85 Mil. PGS Software's average Total Stockholders Equity over the quarter that ended in Sep. 2021 was zł61.99 Mil. Therefore, PGS Software's annualized ROE % for the quarter that ended in Sep. 2021 was 73.96%.
The historical rank and industry rank for PGS Software's ROE % or its related term are showing as below:
LTS:0RK2'
s ROE % Range Over the Past 10 Years
Min: 34.79 Med: 80.8 Max: 112.09
Current: 65.32
During the past 13 years, PGS Software's highest ROE % was 112.09%. The lowest was 34.79%. And the median was 80.80%.
LTS:0RK2's ROE % is not ranked
in the Software industry.
Industry Median: 4.68
vs LTS:0RK2: 65.32
PGS Software (LTS:0RK2) 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 (Sep. 2021) net income data. The Revenue data used here is four times the quarterly (Sep. 2021) 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.
PGS Software ROE % Related Terms
PGS Software ROE % Historical Data
* Premium members only.
The historical data trend for PGS Software'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 Software - Application subindustry, PGS Software'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.
PGS Software ROE % vs Software Industry
For the Software industry and Technology sector, PGS Software's ROE % distribution charts can be found below:
* The bar in red indicates where PGS Software'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 (Sep. 2021) net income data.
ROE % is displayed in the 30-year financial page.
PGS Software (LTS:0RK2) has a ROE % of 73.96% as of Sep. 2021. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on PGS Software and its competitors. This is near median its historical median of 80.80. Over the past decade, PGS Software's ROE % has ranged from 34.79 to 112.09.
Is PGS Software's ROE % too high?
PGS Software's current ROE % of 73.96% is near median its 10-year median of 80.80. Over the past 10 years, this metric has ranged from a low of 34.79 to a high of 112.09. The Software industry median ROE % is 4.68. PGS Software's value of 73.96% is 1480.3% above this industry median. Overall, PGS Software has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does PGS Software's ROE % compare to CRM and INTU?
PGS Software's ROE % of 73.96% can be compared against companies in the Software industry. The industry median ROE % is 4.68. PGS Software's value of 73.96% is 1480.3% above this benchmark. Historically, PGS Software's own ROE % has ranged from 34.79 to 112.09 over the past decade. While the company's 10-year median is 80.80 vs. the industry median of 4.68, PGS Software 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 Software company?
The median ROE % among Software companies is 4.68, based on 2,679 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. PGS Software's current ROE % of 73.96% is 1480.3% 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 PGS Software and its competitors. For the Software industry, the median ROE % is 4.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PGS Software's current ROE % is 73.96%, which is near median its own 10-year median of 80.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PGS Software stock overvalued right now?
PGS Software (LTS:0RK2) has a current ROE % of 73.96%. The current ROE % is 73.96%, which is near median its 10-year median of 80.80 and 1480.3% above the Software industry median of 4.68. PGS Software's overall GF Score™ is 4/100 with 6 warning signs to review. 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 PGS Software (LTS:0RK2), the current ROE % is 73.96% as of Sep. 2021. 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.
PGS Software SA provides software development and IT outsourcing services in Poland. It offers nearshore software outsourcing; mobile and web; application development; continuous delivery, quality analysis, and automation; and cloud services.
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