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CPE Technology Bhd (XKLS:5317) ROE % : 14.68% (As of Jun. 2023)


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What is CPE Technology Bhd ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. CPE Technology Bhd's annualized net income for the quarter that ended in Jun. 2023 was RM30.3 Mil. CPE Technology Bhd's average Total Stockholders Equity over the quarter that ended in Jun. 2023 was RM206.3 Mil. Therefore, CPE Technology Bhd's annualized ROE % for the quarter that ended in Jun. 2023 was 14.68%.

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

XKLS:5317' s ROE % Range Over the Past 10 Years
Min: 11.35   Med: 14.68   Max: 42.24
Current: 14.68

During the past 5 years, CPE Technology Bhd's highest ROE % was 42.24%. The lowest was 11.35%. And the median was 14.68%.

XKLS:5317's ROE % is ranked better than
83.29% of 2412 companies
in the Hardware industry
Industry Median: 4.53 vs XKLS:5317: 14.68

CPE Technology Bhd ROE % Historical Data

The historical data trend for CPE Technology Bhd'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.

CPE Technology Bhd ROE % Chart

CPE Technology Bhd Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23
ROE %
13.16 11.35 24.60 42.24 14.68

CPE Technology Bhd Semi-Annual Data
Jun19 Jun20 Jun21 Jun22 Jun23
ROE % 13.16 11.35 24.60 42.24 14.68

Competitive Comparison of CPE Technology Bhd's ROE %

For the Electronic Components subindustry, CPE Technology Bhd'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.


CPE Technology Bhd's ROE % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, CPE Technology Bhd's ROE % distribution charts can be found below:

* The bar in red indicates where CPE Technology Bhd's ROE % falls into.



CPE Technology Bhd ROE % Calculation

CPE Technology Bhd's annualized ROE % for the fiscal year that ended in Jun. 2023 is calculated as

ROE %=Net Income (A: Jun. 2023 )/( (Total Stockholders Equity (A: Jun. 2022 )+Total Stockholders Equity (A: Jun. 2023 ))/ count )
=30.293/( (103.59+309.043)/ 2 )
=30.293/206.3165
=14.68 %

CPE Technology Bhd's annualized ROE % for the quarter that ended in Jun. 2023 is calculated as

ROE %=Net Income (Q: Jun. 2023 )/( (Total Stockholders Equity (Q: Jun. 2022 )+Total Stockholders Equity (Q: Jun. 2023 ))/ count )
=30.293/( (103.59+309.043)/ 2 )
=30.293/206.3165
=14.68 %

* 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. 2023) net income data. ROE % is displayed in the 30-year financial page.


CPE Technology Bhd  (XKLS:5317) 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. 2023 )
=Net Income/Total Stockholders Equity
=30.293/206.3165
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(30.293 / 145.275)*(145.275 / 255.0595)*(255.0595 / 206.3165)
=Net Margin %*Asset Turnover*Equity Multiplier
=20.85 %*0.5696*1.2363
=ROA %*Equity Multiplier
=11.88 %*1.2363
=14.68 %

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. 2023 )
=Net Income/Total Stockholders Equity
=30.293/206.3165
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (30.293 / 39.101) * (39.101 / 40.196) * (40.196 / 145.275) * (145.275 / 255.0595) * (255.0595 / 206.3165)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7747 * 0.9728 * 27.67 % * 0.5696 * 1.2363
=14.68 %

Note: The net income data used here is one times the annual (Jun. 2023) net income data. The Revenue data used here is one times the annual (Jun. 2023) 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.


CPE Technology Bhd ROE % Related Terms

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CPE Technology Bhd (XKLS:5317) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
No. 6, Jalan Indah Gemilang 5, Taman Perindustrian Gemilang, Ulu Tiram, JHR, MYS, 81800
CPE Technology Bhd is an engineering support services provider principally involved in the manufacturing of precision-machined parts and components and the provision of CNC machining services. The precision-machined parts and components are then used by its customers in different industries which include, but not limited to, semiconductors, life science and medical devices, sports equipment, sensor equipment and security industries in Malaysia and overseas. The company utilizes CNC machining as its primary process such as milling, turning and lathing before going through associated secondary processes which include, but not limited to, polishing, grinding and sandblasting to produce precision-machined parts and components from metal rods and blocks.

CPE Technology Bhd (XKLS:5317) Headlines

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