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Al Fajar AL Alamia CoOG (MUS:AFAI) ROE % : 7.38% (As of Mar. 2019)


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What is Al Fajar AL Alamia CoOG ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Al Fajar AL Alamia CoOG's annualized net income for the quarter that ended in Mar. 2019 was ر.ع1.92 Mil. Al Fajar AL Alamia CoOG's average Total Stockholders Equity over the quarter that ended in Mar. 2019 was ر.ع25.97 Mil. Therefore, Al Fajar AL Alamia CoOG's annualized ROE % for the quarter that ended in Mar. 2019 was 7.38%.

The historical rank and industry rank for Al Fajar AL Alamia CoOG's ROE % or its related term are showing as below:

MUS:AFAI's ROE % is not ranked *
in the Metals & Mining industry.
Industry Median: -16.175
* Ranked among companies with meaningful ROE % only.

Al Fajar AL Alamia CoOG ROE % Historical Data

The historical data trend for Al Fajar AL Alamia CoOG'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.

Al Fajar AL Alamia CoOG ROE % Chart

Al Fajar AL Alamia CoOG Annual Data
Trend Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.45 5.80 5.23 -4.80 5.69

Al Fajar AL Alamia CoOG Quarterly Data
Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
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 9.42 2.57 7.74 5.75 7.38

Competitive Comparison of Al Fajar AL Alamia CoOG's ROE %

For the Other Industrial Metals & Mining subindustry, Al Fajar AL Alamia CoOG'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.


Al Fajar AL Alamia CoOG's ROE % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Al Fajar AL Alamia CoOG's ROE % distribution charts can be found below:

* The bar in red indicates where Al Fajar AL Alamia CoOG's ROE % falls into.



Al Fajar AL Alamia CoOG ROE % Calculation

Al Fajar AL Alamia CoOG's annualized ROE % for the fiscal year that ended in Jun. 2018 is calculated as

ROE %=Net Income (A: Jun. 2018 )/( (Total Stockholders Equity (A: Jun. 2017 )+Total Stockholders Equity (A: Jun. 2018 ))/ count )
=1.409/( (24.071+25.48)/ 2 )
=1.409/24.7755
=5.69 %

Al Fajar AL Alamia CoOG's annualized ROE % for the quarter that ended in Mar. 2019 is calculated as

ROE %=Net Income (Q: Mar. 2019 )/( (Total Stockholders Equity (Q: Dec. 2018 )+Total Stockholders Equity (Q: Mar. 2019 ))/ count )
=1.916/( (25.729+26.208)/ 2 )
=1.916/25.9685
=7.38 %

* 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 (Mar. 2019) net income data. ROE % is displayed in the 30-year financial page.


Al Fajar AL Alamia CoOG  (MUS:AFAI) 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: Mar. 2019 )
=Net Income/Total Stockholders Equity
=1.916/25.9685
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1.916 / 21.224)*(21.224 / 45.0645)*(45.0645 / 25.9685)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.03 %*0.471*1.7354
=ROA %*Equity Multiplier
=4.25 %*1.7354
=7.38 %

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: Mar. 2019 )
=Net Income/Total Stockholders Equity
=1.916/25.9685
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1.916 / 2.104) * (2.104 / 3.112) * (3.112 / 21.224) * (21.224 / 45.0645) * (45.0645 / 25.9685)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9106 * 0.6761 * 14.66 % * 0.471 * 1.7354
=7.38 %

Note: The net income data used here is four times the quarterly (Mar. 2019) net income data. The Revenue data used here is four times the quarterly (Mar. 2019) 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.


Al Fajar AL Alamia CoOG ROE % Related Terms

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Al Fajar AL Alamia CoOG (MUS:AFAI) Business Description

Traded in Other Exchanges
N/A
Address
4th floor, Bank of Beirut Building, P.O. Box 78, Al-Ghubra, City Center Al Qurum, Muscat, OMN, 102
Al Fajar AL Alamia Co SAOG along with its subsidiaries engages in the manufacture and sale of industrial grade explosives. The company primarily manufactures, packages and stores ammonium nitrate, fuel oil (ANFO) and emulsion explosives. ANFO explosives are priced lower than emulsion high explosives and are used in larger quantities. It also provide service of import and storage of initiating systems and drilling accessories. The group operates in two segments:Explosives manufacturing and trading segment includes manufacture and sale of explosives. The Drilling and blasting segment engages in the business of providing drilling and blasting services. It provide services to roads, pipelines, dams, tunnels, undersea blasting for ports, mining and quarrying companies.

Al Fajar AL Alamia CoOG (MUS:AFAI) Headlines

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