CNCCAUTIOUS

Return on Equity (ROE)

-26.0%

Updated 200h ago

Sector Performance

6th percentile

CNC

-26.0%

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 its shareholders' equity.

A value of -26.0% means CNC is losing money relative to the equity invested, indicating weak or negative profitability. CNC's ROE sits far below the sector median of 13.8%, placing it in the 6th percentile among its sector peers. Trend data for this metric is not available, as both year-over-year and quarter-over-quarter changes are listed as N/A. The combination of a deeply negative ROE and the absence of trend information suggests elevated investment risk, since the company is currently destroying shareholder value with no historical context to assess direction. This metric directly supports the overall CAUTIOUS verdict — a -26.0% ROE that ranks near the bottom of the sector is a clear warning sign for potential investors.

Frequently Asked Questions

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

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 CNC'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.