BMYCAUTIOUS

Return on Equity (ROE)

38.7%

Higher than 83% of Healthcare sector peers

Updated 202h ago

Sector Performance

83th percentile

BMY

38.7%

Sector Median

8.9%

Sector Avg

37.1%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from every dollar of shareholders’ equity – a 38.7% ROE means BMY earned about $0.39 for each $1 of equity.

This is well above the healthcare sector median of 8.9%, placing BMY in the 83rd percentile among its peers. The year-over-year change, quarter-over-quarter change, and trend over the last eight quarters are all listed as N/A, so no directional movement can be assessed. The combination of an extremely high current ROE with no available trend data creates a mixed picture: the level suggests strong profitability relative to peers, but the absence of historical context introduces uncertainty about whether this performance is sustainable. This metric supports the overall CAUTIOUS verdict because the outstanding level alone does not guarantee future stability, and the lack of trend information leaves the stock’s risk profile unclear.

Frequently Asked Questions

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

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

BMY's Return on Equity (ROE) of 38.7% compares to a Healthcare sector median of 8.9%, placing it in the 83th percentile.

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

The closest Healthcare peers by Return on Equity (ROE) include: ZBH (6.1%), TECH (5.3%), TMO (13.5%), RVTY (3.2%), BIO (2.5%).

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.