CMINEUTRAL

Return on Equity (ROE)

22.0%

Updated 8h ago

Sector Performance

70th percentile

CMI

22.0%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from every dollar of shareholders’ equity — a 22.0% ROE means CMI earned $0.22 for each $1 of equity.

That figure sits well above the sector median of 13.8%, placing CMI in the 70th percentile among its peers. However, the trend direction is not available for the last eight quarters, and both the year-over-year and quarter-over-quarter changes are listed as N/A, so there is no basis to assess recent momentum. With a high current ROE but no trend data, the metric indicates strong profitability in isolation, but the lack of directional information makes it difficult to evaluate whether this performance is stable or deteriorating. The neutral verdict from the overall stock analysis is supported by this combination: the strong level suggests opportunity, but the absence of trend removes certainty about sustainability.

Frequently Asked Questions

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

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 CMI'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.