CPTCAUTIOUS

Return on Equity (ROE)

9.1%

Updated 78h ago

Sector Performance

34th percentile

CPT

9.1%

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 shareholders’ money — a 9.1% ROE means CPT earns $0.091 for every dollar of equity.

This is below the sector median of 13.7%, placing CPT in the 34th percentile among its peers, indicating below-average profitability. Trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no values exist for the last eight quarters. Without a discernible trend, the current below-median ROE alone signals weak relative performance and adds uncertainty about future earnings quality. The combination of a low ROE level with no trend history points to a higher risk of continued underperformance rather than an investment opportunity. This metric directly supports the overall CAUTIOUS verdict, as a below-median return on equity suggests limited efficiency in using shareholder funds.

Frequently Asked Questions

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

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 CPT'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.