CAGCAUTIOUS

Return on Equity (ROE)

-25.1%

Updated 8h ago

Sector Performance

7th percentile

CAG

-25.1%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

CAG’s current Return on Equity (ROE) of -25.1% means the company generated a net loss relative to the shareholders’ equity invested in the business — a negative ROE indicates the company is destroying equity value, not creating it.

For context, the sector median ROE is 13.8%, and CAG ranks in the 7th percentile among its sector peers, meaning 93% of peers have a higher ROE. The year-over-year change is not available, but the quarter-over-quarter change is -4,920.0% — a sharp deterioration from -0.5% in the prior period. Combining a deeply negative ROE level with a massive quarter-over-quarter decline signals elevated investment risk, as the company’s profitability has turned severely negative in a short timeframe. This metric directly supports the overall CAUTIOUS verdict on CAG, since poor and rapidly worsening returns on equity are consistent with a cautious stance.

Frequently Asked Questions

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

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 CAG'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.