ALLNEUTRAL

Return on Equity (ROE)

33.6%

Higher than 87% of Financial Services sector peers

Updated 1928h ago

Sector Performance

87th percentile

ALL

33.6%

Sector Median

12.9%

Sector Avg

17.5%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity—currently 33.6%, meaning Allstate earns about $0.34 in profit for every $1 of equity.

The sector median for Financial Services is 14.3%, and Allstate’s ROE ranks at the 77th percentile among its peers, indicating it is well above average. The metric has been exactly 33.6% for all of the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%, confirming a completely stable trend. A high ROE combined with a flat trend suggests the company is consistently efficient but offers no recent improvement in profitability, implying moderate investment risk and limited upside opportunity from this metric alone. This stable, high-level performance supports the overall NEUTRAL verdict: the metric shows strong current returns, but the lack of upward movement does not signal a compelling reason to overweight or underweight the stock.

Frequently Asked Questions

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

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

ALL's Return on Equity (ROE) of 33.6% compares to a Financial Services sector median of 12.9%, placing it in the 87th percentile.

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

The closest Financial Services peers by Return on Equity (ROE) include: BLK (11.9%), RF (11.9%), HSBC (11.6%), GOLD (10.8%), PRU (10.7%).

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.