GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » The Pegasus Companies Inc (OTCPK:PEGX) » Definitions » ROE %

The Pegasus (The Pegasus) ROE % : -23.70% (As of Sep. 2006)


View and export this data going back to 1996. Start your Free Trial

What is The Pegasus ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. The Pegasus's annualized net income for the quarter that ended in Sep. 2006 was $-35.76 Mil. The Pegasus's average Total Stockholders Equity over the quarter that ended in Sep. 2006 was $150.88 Mil. Therefore, The Pegasus's annualized ROE % for the quarter that ended in Sep. 2006 was -23.70%.

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

PEGX's ROE % is not ranked *
in the Media - Diversified industry.
Industry Median: 2.56
* Ranked among companies with meaningful ROE % only.

The Pegasus ROE % Historical Data

The historical data trend for The Pegasus'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.

* Premium members only.

The Pegasus ROE % Chart

The Pegasus Annual Data
Trend Dec96 Dec97 Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -42.15 -59.89 -52.95 -1,229.23 Negative Equity

The Pegasus Quarterly Data
Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06
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 -16.23 -18.16 -19.79 -25.05 -23.70

Competitive Comparison of The Pegasus's ROE %

For the Broadcasting subindustry, The Pegasus'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.


The Pegasus's ROE % Distribution in the Media - Diversified Industry

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

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



The Pegasus ROE % Calculation

The Pegasus's annualized ROE % for the fiscal year that ended in Dec. 2005 is calculated as

ROE %=Net Income (A: Dec. 2005 )/( (Total Stockholders Equity (A: Dec. 2004 )+Total Stockholders Equity (A: Dec. 2005 ))/ count )
=385.406/( (-215.199+173.155)/ 2 )
=385.406/-21.022
=Negative Equity %

The Pegasus's annualized ROE % for the quarter that ended in Sep. 2006 is calculated as

ROE %=Net Income (Q: Sep. 2006 )/( (Total Stockholders Equity (Q: Jun. 2006 )+Total Stockholders Equity (Q: Sep. 2006 ))/ count )
=-35.756/( (155.252+146.51)/ 2 )
=-35.756/150.881
=-23.70 %

* 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. 2006) net income data. ROE % is displayed in the 30-year financial page.


The Pegasus  (OTCPK:PEGX) 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. 2006 )
=Net Income/Total Stockholders Equity
=-35.756/150.881
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-35.756 / 2.24)*(2.24 / 167.578)*(167.578 / 150.881)
=Net Margin %*Asset Turnover*Equity Multiplier
=-1596.25 %*0.0134*1.1107
=ROA %*Equity Multiplier
=-21.39 %*1.1107
=-23.70 %

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. 2006 )
=Net Income/Total Stockholders Equity
=-35.756/150.881
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-35.756 / -35.756) * (-35.756 / -36.3) * (-36.3 / 2.24) * (2.24 / 167.578) * (167.578 / 150.881)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 0.985 * -1620.54 % * 0.0134 * 1.1107
=-23.70 %

Note: The net income data used here is four times the quarterly (Sep. 2006) net income data. The Revenue data used here is four times the quarterly (Sep. 2006) 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.


The Pegasus ROE % Related Terms

Thank you for viewing the detailed overview of The Pegasus's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Pegasus (The Pegasus) Business Description

Traded in Other Exchanges
N/A
Address
225 City Line Avenue, Suite 100, Bala Cynwyd, PA, USA, 19004
The Pegasus Companies Inc is the holding company for a variety of satellite and media companies. The company previously operated as an independent provider of DIRECTV to more than 1.1 million subscribers but went into bankruptcy following the termination of the relationship. The company primarily owns and operates six broadcast TV stations and operates three others. These stations serve markets in Tennessee, Florida, Pennsylvania, and Maine.
Executives
Peninsula Investment Partners, L.p. 10 percent owner 404B EAST MAIN STREET, 2ND FLOOR, CHARLOTTESVILLE, VA 22902
Peninsula Capital Advisors Llc 10 percent owner 404B EAST MAIN STREET, 2ND FLOOR, CHARLOTTESVILLE, VA 22902
James Mcentee director CIRA CENTRE, 2929 ARCH STREET, 17TH FLOOR, PHILADELPHIA PA 19104-2870
Ronald B Stark officer: Principal Accounting Officer C/O NRG ENERGY, INC., 211 CARNEGIE CENTER, PRINCETON NJ 08540
Par Capital Management Inc 10 percent owner 200 CLARENDON STREET, FL 48, BOSTON MA 02116
Pegasus Capital Llc 10 percent owner C/O PEGASUS CAPITAL ADVISORS, L.P., 750 EAST MAIN STREET, SUITE 600, STAMFORD CT 06902

The Pegasus (The Pegasus) Headlines

No Headlines