BRZECAUTIOUS

Return on Equity (ROE)

-22.8%

Higher than 16% of Technology sector peers

Updated 121h ago

Sector Performance

16th percentile

BRZE

-22.8%

Sector Median

7.5%

Sector Avg

1.9%

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Deep Analysis

Braze's Return on Equity (ROE) of -22.8% means the company is generating a net loss relative to its shareholders' equity — for every dollar of equity, it loses about $0.23, indicating it is not yet profitable on that basis.

This result is far below the technology sector median of 6.7%, placing Braze in the 14th percentile among its peers, meaning 86% of sector companies have a higher ROE. Year-over-year and eight-quarter trend data are not available, but the quarter-over-quarter change shows a decline of -8.6%, from -21.0% to -22.8%, meaning the loss has deepened. A deeply negative ROE that is worsening indicates elevated investment risk, as the company's returns are deteriorating further from an already poor level. This combination does not support an outright bullish case and instead reinforces the NEUTRAL verdict by highlighting persistent unprofitability and no clear near-term turnaround in this metric.

Frequently Asked Questions

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

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

BRZE's Return on Equity (ROE) of -22.8% compares to a Technology sector median of 7.5%, placing it in the 16th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: WIX (-13.8%), SMAR (-17.3%), TEAM (-19.1%), U (-20.1%), UCTT (-22.5%).

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.