DTECAUTIOUS

Return on Equity (ROE)

10.4%

Updated 440h ago

Sector Performance

39th percentile

DTE

10.4%

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 investment—a 10.4% ROE means DTE earned $0.104 for every dollar of equity.

This sits below the sector median of 14.3%, placing DTE in the 37th percentile among peers, indicating it is less efficient at turning equity into profit than most competitors. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 12.6% from 11.9% to 10.4%, pointing to a recent drop in profitability relative to equity. Combining a below-median ROE with a recent downward trend suggests increased risk, as the company is already underperforming its sector and that performance is weakening. This metric supports the overall NEUTRAL verdict: the ROE does not flag a critical problem, but the below-average level and negative quarterly movement offer no reason to upgrade the stock.

Frequently Asked Questions

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

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 DTE'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.