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Alpha Dhabi Holding PJSC (ADX:ALPHADHABI) ROE % : 8.30% (As of Sep. 2023)


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What is Alpha Dhabi Holding PJSC ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Alpha Dhabi Holding PJSC's annualized net income for the quarter that ended in Sep. 2023 was د.إ3,511 Mil. Alpha Dhabi Holding PJSC's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was د.إ42,315 Mil. Therefore, Alpha Dhabi Holding PJSC's annualized ROE % for the quarter that ended in Sep. 2023 was 8.30%.

The historical rank and industry rank for Alpha Dhabi Holding PJSC's ROE % or its related term are showing as below:

ADX:ALPHADHABI' s ROE % Range Over the Past 10 Years
Min: 22.05   Med: 25.88   Max: 27.03
Current: 27.03

During the past 3 years, Alpha Dhabi Holding PJSC's highest ROE % was 27.03%. The lowest was 22.05%. And the median was 25.88%.

ADX:ALPHADHABI's ROE % is ranked better than
91.28% of 516 companies
in the Conglomerates industry
Industry Median: 5.925 vs ADX:ALPHADHABI: 27.03

Alpha Dhabi Holding PJSC ROE % Historical Data

The historical data trend for Alpha Dhabi Holding PJSC'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.

Alpha Dhabi Holding PJSC ROE % Chart

Alpha Dhabi Holding PJSC Annual Data
Trend Dec20 Dec21 Dec22
ROE %
22.05 26.48 25.88

Alpha Dhabi Holding PJSC Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 5.65 6.60 71.47 22.50 8.30

Competitive Comparison of Alpha Dhabi Holding PJSC's ROE %

For the Conglomerates subindustry, Alpha Dhabi Holding PJSC'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.


Alpha Dhabi Holding PJSC's ROE % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Alpha Dhabi Holding PJSC's ROE % distribution charts can be found below:

* The bar in red indicates where Alpha Dhabi Holding PJSC's ROE % falls into.



Alpha Dhabi Holding PJSC ROE % Calculation

Alpha Dhabi Holding PJSC's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=7341.651/( (23017.006+33710.257)/ 2 )
=7341.651/28363.6315
=25.88 %

Alpha Dhabi Holding PJSC's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=3510.668/( (41929.907+42700.484)/ 2 )
=3510.668/42315.1955
=8.30 %

* 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 (Sep. 2023) net income data. ROE % is displayed in the 30-year financial page.


Alpha Dhabi Holding PJSC  (ADX:ALPHADHABI) 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: Sep. 2023 )
=Net Income/Total Stockholders Equity
=3510.668/42315.1955
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(3510.668 / 41084.172)*(41084.172 / 130716.296)*(130716.296 / 42315.1955)
=Net Margin %*Asset Turnover*Equity Multiplier
=8.55 %*0.3143*3.0891
=ROA %*Equity Multiplier
=2.69 %*3.0891
=8.30 %

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: Sep. 2023 )
=Net Income/Total Stockholders Equity
=3510.668/42315.1955
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (3510.668 / 6570.636) * (6570.636 / 5690.376) * (5690.376 / 41084.172) * (41084.172 / 130716.296) * (130716.296 / 42315.1955)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5343 * 1.1547 * 13.85 % * 0.3143 * 3.0891
=8.30 %

Note: The net income data used here is four times the quarterly (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 2023) 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.


Alpha Dhabi Holding PJSC ROE % Related Terms

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Alpha Dhabi Holding PJSC (ADX:ALPHADHABI) Business Description

Traded in Other Exchanges
N/A
Address
108, Al Muntazah Street, Office 1003, Level 10, TwoFour54 Building 6, P.O. Box 111059, Adjacent Park Rotana Hotel, Abu Dhabi, ARE
Alpha Dhabi Holding PJSC is an investment holding company in the UAE. It invests in five major verticals namely industrials, which relates to the providing of dredging and associated land reclamation works; healthcare, which includes hospital and medical laboratory management services and laboratory diagnostic services; Construction segment provides contracting services relating to saleable and residential buildings, infrastructure development and civil construction works; Real estate, which includes rental income from properties and income from investment in real estate companies or sale of real estate; and Services, which comprise management services, hospitality income as well as a variety of smaller ancillary activities. It generates the majority of its revenue from the UAE.

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