ANEUTRAL

Return on Equity (ROE)

19.3%

Higher than 71% of Healthcare sector peers

Updated 1925h ago

Sector Performance

71th percentile

19.3%

Sector Median

8.9%

Sector Avg

37.1%

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Deep Analysis

Agilent Technologies' Return on Equity (ROE) of 19.3% means that for every dollar of shareholders' equity, the company generated $0.193 in profit over the past year—a measure of how efficiently it uses investor capital.

This figure sits well above the healthcare sector median of 11.1%, placing the company in the 82nd percentile among its peers, indicating above-average profitability relative to the industry. The metric has been perfectly stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%, showing no movement in either direction. The combination of a high ROE level with a flat trend implies consistent, predictable performance with low risk of deterioration, but also no evidence of accelerating returns that would signal a growth opportunity. This stability supports the overall NEUTRAL verdict because while the ROE is strong, the lack of improvement offers no catalyst for a bullish or bearish shift in the stock's outlook.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about A?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does A's Return on Equity (ROE) compare to its sector?

A's Return on Equity (ROE) of 19.3% compares to a Healthcare sector median of 8.9%, placing it in the 71th percentile.

Who are A's closest peers by Return on Equity (ROE)?

The closest Healthcare peers by Return on Equity (ROE) include: ZBH (6.1%), TECH (5.3%), TMO (13.5%), RVTY (3.2%), BIO (2.5%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.