CRWDNEUTRAL

Return on Equity (ROE)

-3.7%

Higher than 29% of Technology sector peers

Updated 712h ago

Sector Performance

29th percentile

CRWD

-3.7%

Sector Median

6.6%

Sector Avg

0.9%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from shareholders’ money; a negative -3.7% means CrowdStrike lost money relative to its equity base.

This is well below the technology sector median of 6.5%, placing the company at the 29th percentile among its peers. The metric has been stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. The combination of a negative ROE and flat trend signals a persistent lack of profitability on equity, meaning higher risk of continued value erosion for investors. This underperformance contradicts the overall NEUTRAL verdict, as a neutral stance would typically expect a metric near or above the sector median.

Frequently Asked Questions

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

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.

How does CRWD's Return on Equity (ROE) compare to its sector?

CRWD's Return on Equity (ROE) of -3.7% compares to a Technology sector median of 6.6%, placing it in the 29th percentile.

Who are CRWD's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: COHU (-9.5%), LSPD (-9.7%), U (-12.4%), AMBA (-12.8%), WIX (-13.8%).

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.