CHRDNEUTRAL

Return on Equity (ROE)

0.6%

Higher than 21% of Energy sector peers

Updated 1078h ago

Sector Performance

21th percentile

CHRD

0.6%

Sector Median

11.8%

Sector Avg

6.6%

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Deep Analysis

Chord Energy’s Return on Equity (ROE) of 0.6% means that for every dollar of shareholder equity, the company generated only $0.006 in net profit over the past year — a measure of how efficiently it uses investor capital to generate earnings.

This is sharply below the Energy sector median of 13.2%, placing the company in the 18th percentile among its sector peers, indicating weaker profitability relative to most competitors. The trend is not assessable because year-over-year change, quarter-over-quarter change, and the last eight quarters of data are all listed as N/A, with only a single 0.6% historical value provided. The combination of a very low ROE and no trend data offers limited insight; investors face uncertainty about whether this poor level is temporary or persistent, which elevates the risk of holding the stock. This metric contradicts the overall NEUTRAL verdict because a ROE far below the sector median generally signals a fundamental disadvantage, yet the absence of trend prevents a stronger downgrade — the neutral stance can only be supported if other metrics offset this weakness.

Frequently Asked Questions

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

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

CHRD's Return on Equity (ROE) of 0.6% compares to a Energy sector median of 11.8%, placing it in the 21th percentile.

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

The closest Energy peers by Return on Equity (ROE) include: TRP (11.3%), ET (12.4%), IMO (12.4%), SLB (12.8%), SHEL (10.2%).

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.