NEPG (NEP Group) ROE %: -26.43% (As of Dec. 2014)


What is NEP Group ROE %?

NEP Group NEPG ROE % is -26.43% as of Dec. 2014.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. NEP Group's annualized net income for the quarter that ended in Dec. 2014 was $-41.22 Mil. NEP Group's average Total Stockholders Equity over the quarter that ended in Dec. 2014 was $155.97 Mil. Therefore, NEP Group's annualized ROE % for the quarter that ended in Dec. 2014 was -26.43%.

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

NEPG's ROE % is not ranked *
in the Media - Diversified industry.
Industry Median: 2.47
* Ranked among companies with meaningful ROE % only.

NEP Group  (NYSE:NEPG) 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: Dec. 2014 )
=Net Income/Total Stockholders Equity
=-41.215/155.9665
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-41.215 / 442.752)*(442.752 / 998.4435)*(998.4435 / 155.9665)
=Net Margin %*Asset Turnover*Equity Multiplier
=-9.31 %*0.4434*6.4017
=ROA %*Equity Multiplier
=-4.13 %*6.4017
=-26.43 %

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: Dec. 2014 )
=Net Income/Total Stockholders Equity
=-41.215/155.9665
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-41.215 / -53.989) * (-53.989 / 0.859) * (0.859 / 442.752) * (442.752 / 998.4435) * (998.4435 / 155.9665)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7634 * -62.851 * 0.19 % * 0.4434 * 6.4017
=-26.43 %

Note: The net income data used here is one times the annual (Dec. 2014) net income data. The Revenue data used here is one times the annual (Dec. 2014) 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.

NEP Group ROE % Related Terms

NEP Group ROE % Historical Data

* Premium members only.

The historical data trend for NEP Group'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.

NEP Group ROE % Chart

NEP Group Annual Data
Trend Dec13 Dec14
ROE %
-15.50 -26.43

NEP Group Semi-Annual Data
Dec13 Dec14
ROE % -15.50 -26.43

NEPG vs CRCO, ASKH, PTSX: ROE % Comparison

For the Broadcasting subindustry, NEP Group'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.

NEP Group ROE % vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, NEP Group's ROE % distribution charts can be found below:

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


NEP Group ROE % Calculation

NEP Group'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 )
=-41.215/( (176.119+135.814)/ 2 )
=-41.215/155.9665
=-26.43 %

NEP Group's annualized ROE % for the quarter that ended in Dec. 2014 is calculated as

ROE %=Net Income (Q: Dec. 2014 )/( (Total Stockholders Equity (Q: Dec. 2013 )+Total Stockholders Equity (Q: Dec. 2014 ))/ count )
=-41.215/( (176.119+135.814)/ 2 )
=-41.215/155.9665
=-26.43 %

* 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 (Dec. 2014) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -26.43% mean?
NEP Group (NEPG) has a ROE % of -26.43% as of Dec. 2014. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on NEP Group and its competitors.
Is NEP Group's ROE % too high?
NEP Group's current ROE % is -26.43%.
How does NEP Group's ROE % compare to CRCO and ASKH?
NEP Group's ROE % of -26.43% can be compared against companies in the Media - Diversified industry. The industry median ROE % is 2.47. 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 Media - Diversified company?
The median ROE % among Media - Diversified companies is 2.47, based on 958 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 NEP Group and its competitors. For the Media - Diversified industry, the median ROE % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NEP Group's current ROE % is -26.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEP Group stock overvalued right now?
NEP Group (NEPG) has a current ROE % of -26.43%. The current ROE % is -26.43%. 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 NEP Group (NEPG), the current ROE % is -26.43% as of Dec. 2014. 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.

NEP Group Business Description

NEP Group Inc was founded on December 24, 2012. The Company is a provider of customized broadcast solutions to the live sports and entertainment markets offering various broadcast and live event services. The Company's engineers design live event solutions and work side-by-side with its clients to customize its solutions and provide real-time support during a broadcast or live event to ensure a seamlessly delivered production. The Company has developed a range of services operating inside and outside of the United States and has supported events. It serves the premium sports, entertainment and other live event production markets, where it offers mission-critical outsourced solutions, including remote production, studio production, video display and host broadcasting. It competes in three primary geographies: the United States, Europe and Australia, servicing the sports, entertainment and other live events markets. It competes against F&F Productions, Game Creek Video, Lyon Video and Mobile Television Group in the United States; Gearhouse Broadcast in Australia; CTV Outside Broadcasts and Telegenic in the U.K.; AMP Visuals, Euro Media Group, Mediapro Group and Top Vision in Continental Europe.