BEAMNEUTRAL

Return on Equity (ROE)

-5.8%

Higher than 33% of Healthcare sector peers

Updated 22h ago

Sector Performance

33th percentile

BEAM

-5.8%

Sector Median

11.0%

Sector Avg

31.7%

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Deep Analysis

Beam Therapeutics’ current Return on Equity (ROE) of -5.8% means the company is losing $0.058 for every dollar of shareholder equity, indicating it is not generating profit from its net assets.

This sits well below the healthcare sector median of 11.0%, placing Beam in the 33rd percentile among its peers, showing it underperforms most companies in its industry. The year-over-year change is not available, but the quarter-over-quarter change shows an improvement of +10.8% (from -6.5% to -5.8%), reflecting a narrowing loss. The combination of a negative ROE with an improving trend points to ongoing risk of shareholder value erosion, though the recent quarterly uptick suggests the pace of losses is slowing. This metric partially contradicts the overall NEUTRAL verdict because a deeply negative ROE is a clear weakness; however, the positive quarterly trend tempers that concern, aligning with a neutral stance that sees both risk and recent progress.

Frequently Asked Questions

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

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

BEAM's Return on Equity (ROE) of -5.8% compares to a Healthcare sector median of 11.0%, placing it in the 33th percentile.

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

The closest Healthcare peers by Return on Equity (ROE) include: BIIB (7.7%), BDX (6.6%), ZBH (6.1%), TECH (5.3%), RVTY (3.2%).

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.