CMGNEUTRAL

Return on Equity (ROE)

49.2%

Updated 198h ago

Sector Performance

91th percentile

CMG

49.2%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from every dollar of shareholders' equity.

At 49.2%, CMG turns nearly half of its equity into net income, which is well above the sector median of 14.2% and places it in the 91st percentile among peers. The year-over-year change is not available, but quarter-over-quarter ROE declined by 9.4 percentage points. While the high absolute level signals strong profitability and a competitive advantage, the recent drop suggests pressure on earnings or rising equity base, making near-term momentum uncertain. This combination of a top-tier ROE with a downward quarterly trend implies a potential risk to sustained outperformance, though the risk is tempered by the wide gap above peers. The metric supports the overall NEUTRAL verdict because the strong level justifies holding the stock, but the deterioration warns against aggressive buy conviction.

Frequently Asked Questions

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

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 CMG'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.