EDNEUTRAL

ED Return on Equity (ROE) Analysis

9.0%

Updated 105h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how efficiently a company generates profit from shareholders’ investments, with 9.0% meaning ED earns $0.09 for every dollar of equity.

Sector Performance

34th percentile

9.0%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

8.7%(Jul 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how efficiently a company generates profit from shareholders’ investments, with 9.0% meaning ED earns $0.09 for every dollar of equity.

This sits below the sector median of 13.4%, placing ED at the 33rd percentile among peers, indicating weaker profitability than two-thirds of its sector. The year-over-year change is not available, but on a quarter-over-quarter basis ROE rose 3.4 percentage points from 8.7% to 9.0%, reflecting recent improvement. That combination—a level below the sector norm alongside a positive quarterly trend—suggests modest near-term momentum that has not yet closed the gap with peers. For an investor, this implies limited immediate risk from deteriorating returns, but also no clear signal of above-average value creation. This metric supports the overall NEUTRAL verdict, as ED’s ROE is neither strong enough to justify a bullish stance nor weak enough to raise red flags.

Frequently Asked Questions

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

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 ED'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.