East African Portland Cement (NAI:PORT) ROE %: 5.39% (As of Jun. 2024)

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NAI:PORT East African Portland Cement NAI:PORT
19 GF Score
Price KES109.00
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What is East African Portland Cement ROE %?

East African Portland Cement NAI:PORT +0.46% 19 ROE % is 5.39% as of Jun. 2024. GuruFocus rates NAI:PORT with a GF Score™ of 19/100.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. East African Portland Cement's annualized net income for the quarter that ended in Jun. 2024 was KES1,067 Mil. East African Portland Cement's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was KES19,807 Mil. Therefore, East African Portland Cement's annualized ROE % for the quarter that ended in Jun. 2024 was 5.39%.

The historical rank and industry rank for East African Portland Cement's ROE % or its related term are showing as below:

NAI:PORT's ROE % is not ranked *
in the Building Materials industry.
Industry Median: 4.32
* Ranked among companies with meaningful ROE % only.

East African Portland Cement  (NAI:PORT) 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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=1067.075/19807.4975
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1067.075 / 3279.053)*(3279.053 / 33983.5405)*(33983.5405 / 19807.4975)
=Net Margin %*Asset Turnover*Equity Multiplier
=32.54 %*0.0965*1.7157
=ROA %*Equity Multiplier
=3.14 %*1.7157
=5.39 %

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: Jun. 2024 )
=Net Income/Total Stockholders Equity
=1067.075/19807.4975
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1067.075 / 1071.546) * (1071.546 / -1966.246) * (-1966.246 / 3279.053) * (3279.053 / 33983.5405) * (33983.5405 / 19807.4975)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9958 * -0.545 * -59.96 % * 0.0965 * 1.7157
=5.39 %

Note: The net income data used here is one times the annual (Jun. 2024) net income data. The Revenue data used here is one times the annual (Jun. 2024) 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.


East African Portland Cement ROE % Related Terms


East African Portland Cement ROE % Historical Data

* Premium members only.

The historical data trend for East African Portland Cement'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.

East African Portland Cement ROE % Chart

East African Portland Cement Annual Data
Trend Jun11 Jun12 Jun15 Jun16 Jun17 Jun18 Jun22 Jun23 Jun24
ROE %
Get a 7-Day Free Trial Premium Member Only -8.45 37.50 2.34 -6.65 5.39

East African Portland Cement Semi-Annual Data
Jun11 Jun12 Jun15 Jun16 Jun17 Jun18 Jun22 Jun23 Jun24
ROE % Get a 7-Day Free Trial Premium Member Only -8.45 37.50 2.34 -6.65 5.39

NAI:PORT vs CRH, MLM, VMC: ROE % Comparison

For the Building Materials subindustry, East African Portland Cement'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.


East African Portland Cement ROE % vs Building Materials Industry

For the Building Materials industry and Basic Materials sector, East African Portland Cement's ROE % distribution charts can be found below:

* The bar in red indicates where East African Portland Cement's ROE % falls into.


NAI:PORT
19GF Score
East African Portland Cement NAI:PORT
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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East African Portland Cement ROE % Calculation

East African Portland Cement's annualized ROE % for the fiscal year that ended in Jun. 2024 is calculated as

ROE %=Net Income (A: Jun. 2024 )/( (Total Stockholders Equity (A: Jun. 2023 )+Total Stockholders Equity (A: Jun. 2024 ))/ count )
=1067.075/( (19214.263+20400.732)/ 2 )
=1067.075/19807.4975
=5.39 %

East African Portland Cement's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=1067.075/( (19214.263+20400.732)/ 2 )
=1067.075/19807.4975
=5.39 %

* 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 one times the annual (Jun. 2024) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 5.39% mean?
East African Portland Cement (NAI:PORT) has a ROE % of 5.39% as of Jun. 2024. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on East African Portland Cement and its competitors.
Is East African Portland Cement's ROE % too high?
East African Portland Cement's current ROE % is 5.39%. The Building Materials industry median ROE % is 4.32. East African Portland Cement's value of 5.39% is 24.8% above this industry median. Overall, East African Portland Cement has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does East African Portland Cement's ROE % compare to CRH and MLM?
East African Portland Cement's ROE % of 5.39% can be compared against companies in the Building Materials industry. The industry median ROE % is 4.32. East African Portland Cement's value of 5.39% is 24.8% 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 Building Materials company?
The median ROE % among Building Materials companies is 4.32, based on 402 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. East African Portland Cement's current ROE % of 5.39% is 24.8% 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 East African Portland Cement and its competitors. For the Building Materials industry, the median ROE % is 4.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. East African Portland Cement's current ROE % is 5.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is East African Portland Cement stock overvalued right now?
East African Portland Cement (NAI:PORT) has a current ROE % of 5.39%. The current ROE % is 5.39% and 24.8% above the Building Materials industry median of 4.32. East African Portland Cement's overall GF Score™ is 19/100. 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 East African Portland Cement (NAI:PORT), the current ROE % is 5.39% as of Jun. 2024. 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.

East African Portland Cement Business Description

Address Namanga Road, Off Mombasa Road, P. O. Box 40101 - 00100, L R 337/113/1, Nairobi, KEN
East African Portland Cement is a Kenya based company engaged in the manufacturing of cement. The company serves many key areas, including housing, education, health, tourism, transport, and communication. Geographically, it operates through the region of the local market of Kenya and the regional market of East Africa, of which the local market of Kenya generates a majority of revenue. Its product portfolio includes PPC, Ordinary Portland Cement (OPC), and Paving Blocks.
19GF Score

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ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

KES109.00
Price