ESSCAUTIOUS

ESS Return on Equity (ROE) Analysis

7.7%

Updated 987h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity; at 7.7%, ESS earns $0.077 for every $1 of equity.

Sector Performance

30th percentile

ESS

7.7%

Sector Median

13.2%

Sector Avg

16.4%

Prior Period

10.6%(Jul 2026)

↓ Declining
📊

Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity; at 7.7%, ESS earns $0.077 for every $1 of equity.

That sits below the sector median of 13.2%, placing the company in the 29th percentile of peers — meaning roughly 71% of comparable firms deliver higher returns on equity. Trend data is not available: year-over-year, quarter-over-quarter, and the eight-quarter path are all N/A, and the only historical value provided is the current 7.7%, so the metric is effectively static in this dataset. The combination of a below-median level with no observable trend signals a persistent profitability lag rather than a recent deterioration, which points to a structural rather than temporary disadvantage. This supports the overall cautious verdict: the low ROE offers limited evidence of value creation for shareholders, and the absence of trend data removes any basis for expecting a near-term improvement.

Frequently Asked Questions

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

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.

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.

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ESS

7.7%

Sector Median

13.2%

Sector Avg

16.4%

How ESS's Return on Equity (ROE) compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.