DOWNEUTRAL

Return on Equity (ROE)

-15.3%

Updated 438h ago

Sector Performance

9th percentile

DOW

-15.3%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity; a negative value like -15.3% means the company is losing money relative to its equity base.

This is far below the sector median of 14.3%, placing DOW in the 9th percentile among its peers—meaning only 9% of sector companies have a worse ROE. The year-over-year change, quarter-over-quarter change, and trend over the last eight quarters are all listed as N/A, with only the single current value available. Because the level is deeply negative but no trend data exists, the investment risk is elevated from the poor current profitability, yet the lack of directional change prevents concluding whether the situation is improving or worsening. This metric supports the overall NEUTRAL verdict: the weak ROE signals caution, but without historical context or a clear downward trend, it does not justify shifting to a bearish stance.

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: 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.