AEENEUTRAL

AEE Return on Equity (ROE) Analysis

10.9%

Higher than 43% of Utilities sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

Ameren Corporation's current Return on Equity (ROE) of 10.9% means that for every dollar of shareholders' equity, the company generated 10.9 cents in net profit — a measure of how efficiently it uses investor capital.

Sector Performance

43th percentile

AEE

10.9%

Sector Median

11.0%

Sector Avg

10.4%

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Deep Analysis

This sits above the utilities sector median of 10.3%, placing Ameren at the 60th percentile among its peers. The metric has been completely stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. The combination of a stable ROE slightly above the sector median suggests a low-risk profile, as the company is consistently earning a fair return without recent improvement or decline. This steadiness implies limited near-term investment opportunity for capital appreciation from earnings efficiency gains, but also no emerging weakness. The stable, median-plus ROE supports the overall NEUTRAL verdict — the metric neither signals a compelling edge nor a red flag, aligning with a hold or neutral stance.

Frequently Asked Questions

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

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

AEE's Return on Equity (ROE) of 10.9% compares to a Utilities sector median of 11.0%, placing it in the 43th percentile.

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

The closest Utilities peers by Return on Equity (ROE) include: LNT (11.1%), AEP (11.5%), PEG (11.8%), PNW (9.6%), ATO (8.8%).

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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.