Return on Equity (ROE)
Updated 394h ago
Sector Performance
21th percentileCTVA
5.1%
Sector Median
13.8%
Sector Avg
31.4%
Deep Analysis
Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity—essentially how efficiently it uses invested capital.
CTVA’s current ROE of 5.1% is well below the sector median of 14.2%, placing it at the 19th percentile among sector peers, meaning it trails the vast majority of comparable companies. The trend data is not available: year-over-year change is reported as N/A, quarter-over-quarter change is N/A, and there are no historical values beyond the current 5.1% figure. Without any trend direction, the combination of a low ROE and no track record of improvement or decline makes it difficult to judge whether the weak profitability is temporary or persistent, implying elevated risk from below-average returns. This low ROE contradicts a bullish outlook and adds caution, but the absence of negative trend data keeps it from being a clear sell signal. Overall, the metric supports the NEUTRAL verdict by highlighting a fundamental weakness that is not confirmed as worsening, leaving the stock in a balanced risk-opportunity position.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about CTVA?
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 CTVA'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.
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5.1%
Sector Median
13.8%
Sector Avg
31.4%
How CTVA's Return on Equity (ROE) compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.