AWKNEUTRAL

Return on Equity (ROE)

10.2%

Updated 317h ago

Sector Performance

38th percentile

AWK

10.2%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company turns shareholders’ invested capital into profit—a 10.2% ROE means AWK generates $10.20 of profit for every $100 of equity.

That 10.2% falls below the sector median of 13.9%, placing AWK in the 37th percentile among its peers, indicating lower profitability efficiency than most competitors. Because year-over-year and quarter-over-quarter changes are both listed as N/A, and no eight-quarter trend is available, there is no evidence of improvement or deterioration in this metric. The combination of a below-median ROE and absent trend data suggests limited insight into the firm’s efficiency trajectory, introducing a modest risk that the company is underperforming its industry without visible momentum to close the gap. This metric aligns with the overall NEUTRAL verdict—the ROE is not strong enough to support a bullish case, nor weak enough to warrant a bearish stance, leaving the stock in a balanced position.

Frequently Asked Questions

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

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.

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

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

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.