CNPNEUTRAL

Return on Equity (ROE)

9.6%

Updated 8h ago

Sector Performance

35th percentile

CNP

9.6%

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—9.6% means that for each dollar of equity, CNP earns about 9.6 cents in net profit.

This is below the sector median of 13.8%, placing CNP in the 35th percentile among its peers, meaning it lags behind most companies in its industry. Because both year-over-year and quarter-over-quarter changes are unavailable, and the only historical value is 9.6%, there is no trend data to assess momentum or direction. With a single data point showing below-median profitability and no trend to indicate improvement or deterioration, the risk is moderate—the company is not a standout but also not a clear underperformer based on the available metric. This ROE level, combined with the lack of trend information, neither strongly supports nor contradicts the overall NEUTRAL verdict; it aligns with a neutral stance given the incomplete picture.

Frequently Asked Questions

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

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 CNP'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.