BENNEUTRAL

Return on Equity (ROE)

6.7%

Updated 267h ago

Sector Performance

26th percentile

BEN

6.7%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; a 6.7% ROE means BEN earns $0.067 for every $1 of equity.

This is well below the sector median of 13.9%, placing BEN in the 26th percentile among its peers. Trend data is unavailable: the year-over-year change is N/A, and the quarter-over-quarter change is also N/A, so no historical movement can be assessed. The combination of a low ROE level with no trend information offers little signal for risk or opportunity, though the below‑median standing points to weaker profitability compared to competitors. This metric supports the overall NEUTRAL verdict because the current underperformance is offset by the lack of trend data, providing no clear basis to upgrade or downgrade the stock.

Frequently Asked Questions

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

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 BEN'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.