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Compass (Compass) ROE % : -140.08% (As of Mar. 2024)


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What is Compass ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Compass's annualized net income for the quarter that ended in Mar. 2024 was $-532 Mil. Compass's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $380 Mil. Therefore, Compass's annualized ROE % for the quarter that ended in Mar. 2024 was -140.08%.

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

COMP' s ROE % Range Over the Past 10 Years
Min: -88.4   Med: -78.17   Max: -67.94
Current: -71.02

During the past 6 years, Compass's highest ROE % was -67.94%. The lowest was -88.40%. And the median was -78.17%.

COMP's ROE % is ranked worse than
96.56% of 1775 companies
in the Real Estate industry
Industry Median: 2.67 vs COMP: -71.02

Compass ROE % Historical Data

The historical data trend for Compass'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.

Compass ROE % Chart

Compass Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial - - - -88.40 -67.94

Compass Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -123.38 -42.22 -34.20 -74.18 -140.08

Competitive Comparison of Compass's ROE %

For the Real Estate Services subindustry, Compass'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.


Compass's ROE % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Compass's ROE % distribution charts can be found below:

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



Compass ROE % Calculation

Compass's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-321.3/( (517.1+428.7)/ 2 )
=-321.3/472.9
=-67.94 %

Compass's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=-531.6/( (428.7+330.3)/ 2 )
=-531.6/379.5
=-140.08 %

* 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. 2024) net income data. ROE % is displayed in the 30-year financial page.


Compass  (NYSE:COMP) 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. 2024 )
=Net Income/Total Stockholders Equity
=-531.6/379.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-531.6 / 4216.4)*(4216.4 / 1152.6)*(1152.6 / 379.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=-12.61 %*3.6582*3.0372
=ROA %*Equity Multiplier
=-46.13 %*3.0372
=-140.08 %

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. 2024 )
=Net Income/Total Stockholders Equity
=-531.6/379.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-531.6 / -530) * (-530 / -292.4) * (-292.4 / 4216.4) * (4216.4 / 1152.6) * (1152.6 / 379.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.003 * 1.8126 * -6.93 % * 3.6582 * 3.0372
=-140.08 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) 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.


Compass ROE % Related Terms

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


Compass (Compass) Business Description

Traded in Other Exchanges
Address
90 Fifth Avenue, 3rd Floor, New York, NY, USA, 10011
Compass Inc provides an end-to-end platform that empowers residential real estate agents to deliver exceptional service to clients. The platform includes an integrated suite of cloud-based software for customer relationship management, marketing, client service and other critical functionality, all custom-built for the real estate industry and enabling core brokerage services. Business operations are conducted in the United States and earn revenue domestically.
Executives
Svf Excaliber (cayman) Ltd 10 percent owner 27 HOSPITAL ROAD, WALKERS CORPORATE LTD., CAYMAN CORPORATE CENTRE, GEORGE TOWN, GRAND CAYMAN E9 KY-9008
Gregory M. Hart officer: Chief Product Officer C/O COMPASS, INC., 155 AVENUE OF THE AMERICAS, SIXTH FLOOR, NEW YORK NY 10013
Danielle J. Wilkie officer: President, Central Region C/O COMPASS, INC., 155 AVENUE OF THE AMERICAS, SIXTH FLOOR, NEW YORK NY 10013
Kalani Reelitz officer: Chief Financial Officer 90 50TH AVENUE, NEW YORK NY 10011
Joseph Sirosh officer: Chief Technology Officer C/O COMPASS, INC., 155 AVENUE OF THE AMERICAS, SIXTH FLOOR, NEW YORK NY 10013
Dawanna Williams director 865 MERRICK AVE, SUITE 200 S, WESTBURY NY 11590
Frank Martell director 10 GASTON FARMS ROAD, GREENWICH CT 06831
Allan Leinwand director C/O MARIN SOFTWARE INCORPORATED, 123 MISSION STREET, 25TH FLOOR, SAN FRANCISCO CA 94105
Josh N. Mccarter director C/O COMPASS, INC., 90 5TH AVENUE, 3RD FLOOR, NYC NY 10011
Robert S. Lehman officer: Chief Business Officer C/O COMPASS, INC., 155 AVENUE OF THE AMERICAS, SIXTH FLOOR, NEW YORK NY 10013
Priyanka Singh officer: Chief People Officer C/O COMPASS, INC., 90 5TH AVENUE, 3RD FLOOR, NEW YORK NY 10011
Robert L. Reffkin director, officer: Chairman and CEO C/O COMPASS, INC., 155 AVENUE OF THE AMERICAS, SIXTH FLOOR, NEW YORK NY 10013
Kristen M. Ankerbrandt officer: Chief Financial Officer C/O COMPASS, INC., 155 AVENUE OF THE AMERICAS, SIXTH FLOOR, NEW YORK NY 10013
Anand Mehta officer: Chief People Officer C/O COMPASS, INC., 90 5TH AVE, 3RD FLOOR, NEW YORK NY 10011
Kamini R. Lane officer: President, West Region C/O COMPASS, INC., 90 5TH AVE, 3RD FLOOR, NEW YORK NY 10011