ACHRCAUTIOUS

ACHR Return on Equity (ROE) Analysis

-28.1%

Higher than 13% of Industrials sector peers

Updated 2795h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity.

Sector Performance

13th percentile

ACHR

-28.1%

Sector Median

15.3%

Sector Avg

-40.0%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity.

A current ROE of -28.1% means Archer Aviation is losing money relative to its equity base, which is a red flag for profitability. The sector median for Industrials is 10.8%, placing Archer in the 13th percentile among peers—far below typical performance. Year-over-year and quarter-over-quarter changes are both listed as N/A, and trend data over the last eight quarters is unavailable, so no direction can be assessed. The combination of a deeply negative ROE level with no trend information leaves uncertainty: the poor current performance signals high risk, but the lack of historical context prevents judging whether this is improving or worsening. This metric directly supports the overall NEUTRAL verdict, as the negative ROE warns of fundamental weakness while the absence of trend data offers no clear catalyst for a bullish or bearish stance.

Frequently Asked Questions

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

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 ACHR's Return on Equity (ROE) compare to its sector?

ACHR's Return on Equity (ROE) of -28.1% compares to a Industrials sector median of 15.3%, placing it in the 13th percentile.

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

The closest Industrials peers by Return on Equity (ROE) include: PWR (15.3%), AME (13.9%), ROP (13.1%), XPO (19.9%), BLDR (2.5%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.