GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Questar Corp (NYSE:STR) » Definitions » ROE %

Questar (Questar) ROE % : 9.73% (As of Jun. 2016)


View and export this data going back to 1984. Start your Free Trial

What is Questar ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Questar's annualized net income for the quarter that ended in Jun. 2016 was $132 Mil. Questar's average Total Stockholders Equity over the quarter that ended in Jun. 2016 was $1,361 Mil. Therefore, Questar's annualized ROE % for the quarter that ended in Jun. 2016 was 9.73%.

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

STR's ROE % is not ranked *
in the Utilities - Regulated industry.
Industry Median: 8.79
* Ranked among companies with meaningful ROE % only.

Questar ROE % Historical Data

The historical data trend for Questar'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.

Questar ROE % Chart

Questar Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.09 20.49 14.43 18.53 16.30

Questar Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 12.46 10.02 15.61 23.47 9.73

Competitive Comparison of Questar's ROE %

For the Utilities - Regulated Gas subindustry, Questar'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.


Questar's ROE % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Questar's ROE % distribution charts can be found below:

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



Questar ROE % Calculation

Questar's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=208.7/( (1246.2+1315.1)/ 2 )
=208.7/1280.65
=16.30 %

Questar's annualized ROE % for the quarter that ended in Jun. 2016 is calculated as

ROE %=Net Income (Q: Jun. 2016 )/( (Total Stockholders Equity (Q: Mar. 2016 )+Total Stockholders Equity (Q: Jun. 2016 ))/ count )
=132.4/( (1360.7+1360.3)/ 2 )
=132.4/1360.5
=9.73 %

* 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. 2016) net income data. ROE % is displayed in the 30-year financial page.


Questar  (NYSE:STR) 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. 2016 )
=Net Income/Total Stockholders Equity
=132.4/1360.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(132.4 / 696.4)*(696.4 / 4159.9)*(4159.9 / 1360.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=19.01 %*0.1674*3.0576
=ROA %*Equity Multiplier
=3.18 %*3.0576
=9.73 %

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. 2016 )
=Net Income/Total Stockholders Equity
=132.4/1360.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (132.4 / 203.6) * (203.6 / 257.6) * (257.6 / 696.4) * (696.4 / 4159.9) * (4159.9 / 1360.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6503 * 0.7904 * 36.99 % * 0.1674 * 3.0576
=9.73 %

Note: The net income data used here is four times the quarterly (Jun. 2016) net income data. The Revenue data used here is four times the quarterly (Jun. 2016) 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.


Questar ROE % Related Terms

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


Questar (Questar) Business Description

Traded in Other Exchanges
N/A
Address
Questar Corporation is an integrated natural gas holding company with three lines of business operated through wholly owned subsidiaries: Wexpro Company, Questar Pipeline and Questar Gas. Questar Gas distributes natural gas as a public utility in Utah, southwestern Wyoming and a small portion of southeastern Idaho. Questar Gas has the necessary regulatory approvals to serve the areas and has long-term franchises granted by communities and counties within its service area. Questar Gas currently does not face direct competition from other distributors of natural gas for residential and commercial customers in its service territory. Wexpro develops, produces and delivers natural gas from cost-of-service reserves for gas utility affiliate Questar Gas under the terms of the Wexpro Agreement and the Wexpro II Agreement (Wexpro agreements), comprehensive agreements with the states of Utah and Wyoming. Wexpro delivers natural gas production to Questar Gas at cost of service. Wexpro's properties are located in the Rocky Mountain region, in the Vermillion, Pinedale, Moxa Arch, and Uinta Basin producing fields. Wexpro faces competition in its business, including the marketing of oil and NGL, and obtaining goods, services and labor. Questar Pipeline provides natural gas transportation and underground-storage services in Utah, Wyoming and Colorado. Questar Pipeline and its subsidiaries operate 2,667 miles of interstate pipeline, including 10 miles owned by a third party. Questar Pipeline's core transportation system is strategically located near large reserves of natural gas in six Rocky Mountain producing areas. Questar Pipeline transports natural gas from these producing areas to other pipeline systems, Questar Gas's distribution system and other utility systems. In addition to this core system, Questar Pipeline, through wholly-owned subsidiaries, owns and operates the Overthrust Pipeline in southwestern Wyoming and the eastern segment of Southern Trails Pipeline, a 487-mile line that extends from the Blanco hub in New Mexico's San Juan Basin to just inside the California state line near the Arizona border. An additional 96miles of Southern Trails Pipeline in California is not in service.
Executives
Harris H Simmons director ZIONS BANCORPORATION, ONE MAIN STREET, SUITE 1134, SALT LAKE CITY UT 84111
Laurence M Downes director C/O NEW JERSEY RESOURCES CORPORATION, 1415 WYCKOFF ROAD, WALL NJ 07719
Ron W Jibson officer: President & CEO 180 EAST 100 SOUTH, P.O. BOX 45360, SALT LAKE CITY UT 84145-0433
Rebecca Ranich director 333 S STATE STREET, SALT LAKE CITY UT 84145-0433
Micheal G. Dunn officer: EVP & President, QPC 333 SOUTH STATE STREET, 333 SOUTH STATE STREET UT 84145-0433
Christopher A Helms director MPLX LP, 200 E. HARDIN STREET, FINDLAY OH 45840
Teresa Beck director 1681 SOUTH MOHAWK WAY, SALT LAKE CITY UT 84108
J T Mcmanus director 605 RICHARD ARRINGTON JR BLVD N, BIRMINGHAM AL 35203-2707
Bruce A Williamson director C/O SOUTHCROSS ENERGY PARTNERS, L.P., 1717 MAIN STREET, SUITE 5200, DALLAS TX 75201
R D Cash director 5201 18TH PLACE, LUBBOCK TX 79416
Keith O Rattie director 180 EAST 100 SOUTH, SALT LAKE CITY UT 84111
Gary G Michael director P. O. BOX 1718, BOISE ID 83701
L Richard Flury director 2000 W SAM HOUSTON PKWY S, SUITE 2000, HOUSTON TX 77042
Mckee Robert E Iii director 14927 SANDALFOOT, HOUSTON TX 77095
Charles B Stanley director, officer: EVP / COO 6500 NORTH MINERAL DRIVE, COEUR D'ALENE ID 83815-9408

Questar (Questar) Headlines