DOWNEUTRAL

DOW Return on Equity (ROE) Analysis

-5.5%

Updated 57h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) shows how much profit a company earns for each dollar of shareholders' equity; a -5.5% value means DOW is currently generating a net loss equal to 5.5% of its equity.

Sector Performance

14th percentile

DOW

-5.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

-15.3%(Jun 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) shows how much profit a company earns for each dollar of shareholders' equity; a -5.5% value means DOW is currently generating a net loss equal to 5.5% of its equity.

That compares poorly with the sector median of 13.6%, and the company sits at the 13th percentile among peers, meaning roughly 87% of sector companies deliver a higher ROE. The trend data is N/A: both the year-over-year and quarter-over-quarter changes are unavailable, so there is no information on whether this negative ROE is improving or worsening. The combination of a negative ROE with no trend history implies current profitability is weak, but the lack of direction leaves the persistence of the loss uncertain. This adds investment risk from an unprofitable position, yet offers no evidence of accelerating deterioration. The weak level does not contradict the overall NEUTRAL verdict, since it undermines a bullish case but, without trend data, does not justify a bearish call either.

Frequently Asked Questions

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

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 DOW's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.