ELCAUTIOUS

EL Return on Equity (ROE) Analysis

4.7%

Updated 153h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; at -5.9%, the company is losing $5.90 per $100 of invested equity.

Sector Performance

22th percentile

4.7%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

-5.9%(Aug 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; at -5.9%, the company is losing $5.90 per $100 of invested equity.

This sits far below the sector median of 13.8%, placing it in the 11th percentile among peers, meaning most similar companies achieve a much higher return. Trend data is unavailable: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no values exist for the last 8 quarters. The combination of a negative ROE and no historical trend makes it hard to judge whether performance is improving or deteriorating, leaving only the current weak level as a signal. That level poses clear downside risk, as persistent losses against equity can erode shareholder value. This metric directly supports the overall CAUTIOUS verdict, since a negative return relative to a double-digit sector median is a red flag.

Frequently Asked Questions

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

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 EL'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.