EMNNEUTRAL

EMN Return on Equity (ROE) Analysis

7.3%

Updated 105h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for every dollar of shareholder equity, and EMN's 7.3% means it earns $0.073 per $1 of equity.

Sector Performance

28th percentile

EMN

7.3%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

6.6%(Jul 2026)

↑ Improving

📊

Deep Analysis

Return on equity (ROE) measures how much profit a company generates for every dollar of shareholder equity, and EMN's 7.3% means it earns $0.073 per $1 of equity.

This trails the sector median of 13.4%, placing EMN in the 27th percentile among peers, so most competitors convert equity into profit more efficiently. The overall trend direction is not available, as is the year-over-year change; however, quarter-over-quarter ROE rose 10.6%, from 6.6% to 7.3%. The combination of a below-median level with a recent quarterly improvement suggests the company is not underperforming as severely as before, but still carries above-average investment risk relative to the sector. This metric partially supports the overall NEUTRAL verdict: the low level undercuts the stock's case, while the upward quarterly move keeps it from looking outright bearish. Therefore, the ROE data does not contradict the neutral stance, but it does highlight that profit generation on equity remains a weak spot.

Frequently Asked Questions

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

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 EMN'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%).

📚

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.