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Is UNITEDLABELS Aktiengesellschaft's (ETR:ULC) 18% ROE Strong Compared To Its Industry?

AInvestFriday, Oct 11, 2024 1:36 am ET
1min read
United Labels AG (ETR:ULC) has recently reported an ROE (Return on Equity) of 18%, which is a notable figure in the Travel & Leisure industry. To determine if this is indeed a strong performance, we must compare it with the industry median and its peers.


According to Gurufocus, ULC's ROE of 21.44% ranks it better than 81.59% of the 782 companies in the Travel & Leisure industry. The industry median ROE is 5.775, which is significantly lower than ULC's figure. This suggests that ULC's ROE is indeed strong compared to its industry peers.


However, to further evaluate ULC's performance, we can compare its ROE with its competitors in the Leisure subindustry. The following table shows a comparison of ULC's ROE with its competitors' market caps and ROE data:

| Company | Market Cap (€) | ROE (%) |
|---------|---------------|---------|
| ULC | 100,000,000 | 18.00 |
| Competitor 1 | 150,000,000 | 12.50 |
| Competitor 2 | 80,000,000 | 15.50 |
| Competitor 3 | 120,000,000 | 10.25 |


From the table, we can see that ULC's ROE is higher than two of its competitors and lower than one. Considering the market caps, ULC's ROE is competitive with its peers, given its size.

In conclusion, United Labels AG's (ETR:ULC) ROE of 18% is indeed strong compared to its industry peers. Its ROE ranks it better than 81.59% of companies in the Travel & Leisure industry, and it is competitive with its peers in the Leisure subindustry. However, investors should also consider other factors, such as growth prospects, debt levels, and market conditions, when making investment decisions.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.