AXONCAUTIOUS

Return on Equity (ROE)

6.8%

Updated 198h ago

Sector Performance

27th percentile

AXON

6.8%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

The current Return on Equity (ROE) of 6.8% means that for every dollar of shareholder equity, AXON generates $0.068 in net profit — a measure of how efficiently the company uses investors’ capital.

This is well below the sector median of 13.8%, placing it in the 27th percentile among its peers, indicating weaker profitability relative to similar companies. No trend data is available: the year-over-year change, quarter-over-quarter change, and last eight quarters are all marked N/A, so there is no basis to assess whether performance is improving or deteriorating. The combination of a low ROE level with no trend history creates limited visibility, which adds uncertainty for investors. This metric directly supports the overall CAUTIOUS verdict, as the company’s returns on equity trail most of its sector, suggesting higher risk and less efficient capital use.

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: 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.