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ORBCOMM (ORBCOMM) ROE %

: -15.68% (As of Jun. 2021)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ORBCOMM's annualized net income for the quarter that ended in Jun. 2021 was $-30.6 Mil. ORBCOMM's average Total Stockholders Equity over the quarter that ended in Jun. 2021 was $194.9 Mil. Therefore, ORBCOMM's annualized ROE % for the quarter that ended in Jun. 2021 was -15.68%.

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

ORBC's ROE % is not ranked *
in the Telecommunication Services industry.
Industry Median: 6.935
* Ranked among companies with meaningful ROE % only.

ORBCOMM ROE % Historical Data

The historical data trend for ORBCOMM'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.

ORBCOMM Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -8.10 -23.26 -10.45 -7.47 -15.28

ORBCOMM Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
ROE % 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 Premium Member Only Premium Member Only Premium Member Only -11.79 -9.93 -27.56 -20.84 -15.68

Competitive Comparison

For the Telecom Services subindustry, ORBCOMM'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.


ORBCOMM ROE % Distribution

For the Telecommunication Services industry and Communication Services sector, ORBCOMM's ROE % distribution charts can be found below:

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



ORBCOMM ROE % Calculation

ORBCOMM's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=-33.94/( (236.21+207.95)/ 2 )
=-33.94/222.08
=-15.28 %

ORBCOMM's annualized ROE % for the quarter that ended in Jun. 2021 is calculated as

ROE %=Net Income (Q: Jun. 2021 )/( (Total Stockholders Equity (Q: Mar. 2021 )+Total Stockholders Equity (Q: Jun. 2021 ))/ count )
=-30.564/( (197.577+192.188)/ 2 )
=-30.564/194.8825
=-15.68 %

* 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 four times the quarterly (Jun. 2021) net income data. ROE % is displayed in the 30-year financial page.


ORBCOMM  (NAS:ORBC) 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. 2021 )
=Net Income/Total Stockholders Equity
=-30.564/194.8825
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-30.564 / 263.712)*(263.712 / 490.001)*(490.001 / 194.8825)
=Net Margin %*Asset Turnover*Equity Multiplier
=-11.59 %*0.5382*2.5143
=ROA %*Equity Multiplier
=-6.24 %*2.5143
=-15.68 %

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. 2021 )
=Net Income/Total Stockholders Equity
=-30.564/194.8825
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-30.564 / -27.324) * (-27.324 / -8.128) * (-8.128 / 263.712) * (263.712 / 490.001) * (490.001 / 194.8825)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.1186 * 3.3617 * -3.08 % * 0.5382 * 2.5143
=-15.68 %

Note: The net income data used here is four times the quarterly (Jun. 2021) net income data. The Revenue data used here is four times the quarterly (Jun. 2021) 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.


ORBCOMM ROE % Related Terms

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


ORBCOMM (ORBCOMM) Business Description

Traded in Other Exchanges
N/A
Address
395 W. Passaic Street, Suite 325, Rochelle Park, NJ, USA, 07662
ORBCOMM Inc is a satellite communications company that primarily provides machine-to-machine communication, which is designed to track, monitor, and control fixed and mobile assets. The company operates in such markets as transportation and distribution, heavy equipment, industrial fixed assets, oil and gas, maritime, mining, and government. The company earns revenue across the United States, South America, Japan, and Europe, with the majority from the U.S. The company owns telecommunications infrastructure, specifically low Earth orbit satellites and accompanying ground infrastructure.
Executives
Karen O. Gould director C/O ORBCOMM INC. 395 W. PASSAIC STREET ROCHELLE PARK NJ 07662
Denise W. Gibson director 140 SCHOOL STREET, LIBERTYVILLE IL 60048
Milcos Constantine officer: EVP and CFO C/O ORBCOMM, INC., 395 W. PASSAIC STREET SUITE 325 ROCHELLE PARK NJ 07662
Craig Malone officer: EVP of Product Development C/O ORBCOMM INC. 395 W PASSAIC STREET, SUITE 325 ROCHELLE PARK NJ 07662
Marc Eisenberg officer: Chief Marketing Officer C/O ORBCOMM INC., 395 W PASSAIC STREET, SUITE 325, ROCHELLE PARK NJ 07662
Brun Christian Le officer: EVP, General Counsel & Sec. C/O ORBCOMM INC. 395 W PASSAIC STREET, SUITE 325 ROCHELLE PARK NJ 07662
Stolte John J Jr officer: EVP-Technology & Operations C/O ORBCOMM INC. 395 W PASSAIC STREET, SUITE 325 ROCHELLE PARK NJ 07662
Jerome B Eisenberg director, officer: Chairman, CEO and President C/O ORBCOMM INC. 395 W PASSAIC STREET, SUITE 325 ROCHELLE PARK NJ 07662
Adage Capital Partners Gp, L.l.c. 10 percent owner 200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
John E Major director C/O LENNOX INTERNATIONAL INC., 2140 LAKE PARK BOULEVARD, RICHARDSON TX 75080-2254
Timothy Kelleher director C/O ORBCOMM INC. 395 W PASSAIC STREET, SUITE 325 ROCHELLE PARK NJ 07662
Phillip Gross 10 percent owner 200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
Robert Atchinson 10 percent owner 200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
Adage Capital Advisors, L.l.c. 10 percent owner 200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116
Adage Capital Partners, L.p. 10 percent owner 200 CLARENDON STREET, 52ND FLOOR, BOSTON MA 02116