Return on Equity – Companies with 31 December 2015 Year End

Return on Equity (ROE) is an important indicator for investors. It tells investors how much the company is earning (profits) for the shareholders. It is net profits attributable to shareholders divided by shareholders’ funds calculated as a percentage term.

The higher the ROE, the better for the shareholders. Because it is calculated as percentage term, we can compare one ROE with another ROE of another company.

From the latest financial results for some companies with December 2015 year-end, the following data were extracted:

Counter ROE (%) EPS ($) Dividend ($)
StarHub * 221.2 0.215 0.20
M1 44.2 0.191 0.153
ST Engr 24.8 0.1705 0.15
Keppel Corp 14.2 0.84 0.34
Comfort Delgro 12.4 0.1407 0.05
OCBC 12.3 0.952 0.36
DBS 11.2 1.77 0.60
UOB 11.0 1.94 0.90
SembCorp Ind 9.4 0.2917 0.11
City Developments 8.6 0.836 0.16
CapitaLand 6.2 0.25 0.09
SBS Transit 5.2 0.0541 0.0105
UOL 5.0 0.4939 0.15
SembCorp Marine -10.6 -0.1387 0.06

EPS = Earnings per share
Dividend is full year dividend
* StarHub has a very low group shareholders’ equity (due to its unique capital structure) and therefore its ROE is very high.

The table is sorted by ROE from highest ROE to the lowest ROE.

SembCorp Marine has a negative ROE because it had an overall loss in operation for 2015.

Disclaimer: The author disclaimed liabilities on use of this post by readers for investment decisions. Use them with caution.

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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