Grupo Comercial Gomo de CV (MEX:GOMO) ROE %: 7.86% (As of Mar. 2015)


What is Grupo Comercial Gomo de CV ROE %?

Grupo Comercial Gomo de CV MEX:GOMO ROE % is 7.86% as of Mar. 2015.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Grupo Comercial Gomo de CV's annualized net income for the quarter that ended in Mar. 2015 was MXN1,838 Mil. Grupo Comercial Gomo de CV's average Total Stockholders Equity over the quarter that ended in Mar. 2015 was MXN23,383 Mil. Therefore, Grupo Comercial Gomo de CV's annualized ROE % for the quarter that ended in Mar. 2015 was 7.86%.

The historical rank and industry rank for Grupo Comercial Gomo de CV's ROE % or its related term are showing as below:

MEX:GOMO's ROE % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 6.49
* Ranked among companies with meaningful ROE % only.

Grupo Comercial Gomo de CV  (MEX:GOMO) 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. 2015 )
=Net Income/Total Stockholders Equity
=1838.16/23383.356
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1838.16 / 73183.36)*(73183.36 / 45891.5815)*(45891.5815 / 23383.356)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.51 %*1.5947*1.9626
=ROA %*Equity Multiplier
=4 %*1.9626
=7.86 %

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. 2015 )
=Net Income/Total Stockholders Equity
=1838.16/23383.356
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1838.16 / 2815.536) * (2815.536 / 3709.512) * (3709.512 / 73183.36) * (73183.36 / 45891.5815) * (45891.5815 / 23383.356)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6529 * 0.759 * 5.07 % * 1.5947 * 1.9626
=7.86 %

Note: The net income data used here is four times the quarterly (Mar. 2015) net income data. The Revenue data used here is four times the quarterly (Mar. 2015) 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.


Grupo Comercial Gomo de CV ROE % Related Terms


Grupo Comercial Gomo de CV ROE % Historical Data

* Premium members only.

The historical data trend for Grupo Comercial Gomo de CV'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.

Grupo Comercial Gomo de CV ROE % Chart

Grupo Comercial Gomo de CV Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROE %
Get a 7-Day Free Trial 10.31 8.33 7.59 7.90 7.67

Grupo Comercial Gomo de CV Quarterly Data
Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15
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 7.74 8.01 7.40 7.61 7.86

MEX:GOMO vs KIRK: ROE % Comparison

For the Specialty Retail subindustry, Grupo Comercial Gomo de CV'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.


Grupo Comercial Gomo de CV ROE % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Grupo Comercial Gomo de CV's ROE % distribution charts can be found below:

* The bar in red indicates where Grupo Comercial Gomo de CV's ROE % falls into.



Grupo Comercial Gomo de CV ROE % Calculation

Grupo Comercial Gomo de CV's annualized ROE % for the fiscal year that ended in Dec. 2014 is calculated as

ROE %=Net Income (A: Dec. 2014 )/( (Total Stockholders Equity (A: Dec. 2013 )+Total Stockholders Equity (A: Dec. 2014 ))/ count )
=1708.71/( (21405.035+23129.291)/ 2 )
=1708.71/22267.163
=7.67 %

Grupo Comercial Gomo de CV's annualized ROE % for the quarter that ended in Mar. 2015 is calculated as

ROE %=Net Income (Q: Mar. 2015 )/( (Total Stockholders Equity (Q: Dec. 2014 )+Total Stockholders Equity (Q: Mar. 2015 ))/ count )
=1838.16/( (23129.291+23637.421)/ 2 )
=1838.16/23383.356
=7.86 %

* 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. 2015) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 7.86% mean?
Grupo Comercial Gomo de CV (MEX:GOMO) has a ROE % of 7.86% as of Mar. 2015. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Grupo Comercial Gomo de CV and its competitors.
Is Grupo Comercial Gomo de CV's ROE % too high?
Grupo Comercial Gomo de CV's current ROE % is 7.86%. The Retail - Cyclical industry median ROE % is 6.49. Grupo Comercial Gomo de CV's value of 7.86% is 21.1% above this industry median.
How does Grupo Comercial Gomo de CV's ROE % compare to KIRK?
Grupo Comercial Gomo de CV's ROE % of 7.86% can be compared against companies in the Retail - Cyclical industry. The industry median ROE % is 6.49. Grupo Comercial Gomo de CV's value of 7.86% is 21.1% above 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 Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.49, based on 1,092 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. Grupo Comercial Gomo de CV's current ROE % of 7.86% is 21.1% 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 Grupo Comercial Gomo de CV and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grupo Comercial Gomo de CV's current ROE % is 7.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grupo Comercial Gomo de CV stock overvalued right now?
Grupo Comercial Gomo de CV (MEX:GOMO) has a current ROE % of 7.86%. The current ROE % is 7.86% and 21.1% above the Retail - Cyclical industry median of 6.49. 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 Grupo Comercial Gomo de CV (MEX:GOMO), the current ROE % is 7.86% as of Mar. 2015. 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.

Grupo Comercial Gomo de CV Business Description

Address Boulevard Adolfo Lopez Mateos 2370, Segundo Piso, Colonia Altavista, Mexico DF, MEX, 01060
Grupo Comercial Gomo SA de CV is a Mexico-based company engaged in the sale, distribution, purchase, representation, import and export of various types of consumer electronic goods and household appliances, as well as motorcycles.