Cerved Group SpA (MEX:CERVN) ROE %: -1.62% (As of Sep. 2021)


What is Cerved Group SpA ROE %?

Cerved Group SpA MEX:CERVN 8 ROE % is -1.62% as of Sep. 2021. GuruFocus rates MEX:CERVN with a GF Score™ of 8/100. The stock has 8 warning signs investors should review.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Cerved Group SpA's annualized net income for the quarter that ended in Sep. 2021 was MXN-228.26 Mil. Cerved Group SpA's average Total Stockholders Equity over the quarter that ended in Sep. 2021 was MXN14,055.14 Mil. Therefore, Cerved Group SpA's annualized ROE % for the quarter that ended in Sep. 2021 was -1.62%.

The historical rank and industry rank for Cerved Group SpA's ROE % or its related term are showing as below:

MEX:CERVN' s ROE % Range Over the Past 10 Years
Min: 0.25   Med: 8.39   Max: 15.63
Current: 14.34

During the past 11 years, Cerved Group SpA's highest ROE % was 15.63%. The lowest was 0.25%. And the median was 8.39%.

MEX:CERVN's ROE % is not ranked
in the Capital Markets industry.
Industry Median: 6.005 vs MEX:CERVN: 14.34

Cerved Group SpA  (MEX:CERVN) 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: Sep. 2021 )
=Net Income/Total Stockholders Equity
=-228.264/14055.135
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-228.264 / 10612.508)*(10612.508 / 35861.7305)*(35861.7305 / 14055.135)
=Net Margin %*Asset Turnover*Equity Multiplier
=-2.15 %*0.2959*2.5515
=ROA %*Equity Multiplier
=-0.64 %*2.5515
=-1.62 %

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: Sep. 2021 )
=Net Income/Total Stockholders Equity
=-228.264/14055.135
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-228.264 / -142.82) * (-142.82 / 300.932) * (300.932 / 10612.508) * (10612.508 / 35861.7305) * (35861.7305 / 14055.135)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.5983 * -0.4746 * 2.84 % * 0.2959 * 2.5515
=-1.62 %

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.


Cerved Group SpA ROE % Related Terms


Cerved Group SpA ROE % Historical Data

* Premium members only.

The historical data trend for Cerved Group SpA'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.

Cerved Group SpA ROE % Chart

Cerved Group SpA Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.27 10.81 15.32 10.28 5.63

Cerved Group SpA Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.29 -3.85 15.50 46.74 -1.62

MEX:CERVN vs VALU: ROE % Comparison

For the Financial Data & Stock Exchanges subindustry, Cerved Group SpA'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.


Cerved Group SpA ROE % vs Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Cerved Group SpA's ROE % distribution charts can be found below:

* The bar in red indicates where Cerved Group SpA's ROE % falls into.



Cerved Group SpA ROE % Calculation

Cerved Group SpA's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=620.839/( (10158.101+11886.511)/ 2 )
=620.839/11022.306
=5.63 %

Cerved Group SpA's annualized ROE % for the quarter that ended in Sep. 2021 is calculated as

ROE %=Net Income (Q: Sep. 2021 )/( (Total Stockholders Equity (Q: Jun. 2021 )+Total Stockholders Equity (Q: Sep. 2021 ))/ count )
=-228.264/( (13917.652+14192.618)/ 2 )
=-228.264/14055.135
=-1.62 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -1.62% mean?
Cerved Group SpA (MEX:CERVN) has a ROE % of -1.62% 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 Cerved Group SpA and its competitors. Over the past decade, Cerved Group SpA's ROE % has ranged from 0.25 to 15.63.
Is Cerved Group SpA's ROE % too high?
Cerved Group SpA's current ROE % is -1.62%. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 15.63. Overall, Cerved Group SpA has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Cerved Group SpA's ROE % compare to VALU?
Cerved Group SpA's ROE % of -1.62% can be compared against companies in the Capital Markets industry. The industry median ROE % is 6.01. Historically, Cerved Group SpA's own ROE % has ranged from 0.25 to 15.63 over the past decade. 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 Capital Markets company?
The median ROE % among Capital Markets companies is 6.01, based on 794 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. 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 Cerved Group SpA and its competitors. For the Capital Markets industry, the median ROE % is 6.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cerved Group SpA's current ROE % is -1.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cerved Group SpA stock overvalued right now?
Cerved Group SpA (MEX:CERVN) has a current ROE % of -1.62%. The current ROE % is -1.62%. Cerved Group SpA's overall GF Score™ is 8/100 with 8 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 Cerved Group SpA (MEX:CERVN), the current ROE % is -1.62% 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.

Cerved Group SpA Business Description

Address Via Dell’Unione Europea, 6A, 6B, San Donato Milanese, Milan, ITA, 20097
Cerved Group SpA is a holding company that owns the Cerved Group, an Italian credit information service provider. It operates through three segments. The Risk Management segment, which accounts for the majority of the Cerved Group's revenue, offers products and services that help businesses and financial institutions to assess the credit status of their customers, business counterparties, and potential customers. The Growth Services segment offers information and analyses that help customers to understand the target market and regions, develop businesses, and improve customer satisfaction. The credit management segment assesses and manages troubled receivables and assets. It generates the majority of its revenue from the Italian domestic market.