AXONCAUTIOUS

AXON Return on Equity (ROE) Analysis

6.2%

Updated 153h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) is profit generated per dollar of shareholders' equity, and the current 6.2% means AXON earns $0.062 for each $1 of owner-invested capital.

Sector Performance

25th percentile

AXON

6.2%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

6.8%(Jul 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) is profit generated per dollar of shareholders' equity, and the current 6.2% means AXON earns $0.062 for each $1 of owner-invested capital.

This sits far below the sector median of 13.3%, placing the company in the 24th percentile among peers. The eight-quarter trend direction is N/A, the year-over-year change is N/A, and the quarter-over-quarter change shows a decline of 8.8% from the prior value of 6.8% to 6.2%. The low level relative to peers combined with a recent quarterly decline indicates that AXON is generating weak returns and losing momentum, which raises the risk of value erosion for shareholders. This metric contradicts a bullish outlook and directly supports the overall CAUTIOUS verdict on the stock.

Frequently Asked Questions

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

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 AXON's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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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.