ESSCAUTIOUS

ESS Return on Equity (ROE) Analysis

7.7%

Updated 153h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures profit generated per dollar of shareholder equity; a 7.7% ROE means the company earns about $0.077 for every $1 of equity.

Sector Performance

29th percentile

ESS

7.7%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

10.6%(Jul 2026)

↓ Declining

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Deep Analysis

Return on equity (ROE) measures profit generated per dollar of shareholder equity; a 7.7% ROE means the company earns about $0.077 for every $1 of equity.

That level sits below the sector median of 13.9% and places ESS in the 30th percentile among sector peers. The trend direction over the last 8 quarters is N/A, the year-over-year change is N/A, and the quarter-over-quarter change is -27.4%. Historical values show a drop from 10.6% to 7.7% in the most recent period. A below-median ROE combined with a sharp quarterly decline points to weaker profit generation relative to peers and rising operational risk. This metric directly supports the overall CAUTIOUS verdict, as the current efficiency and negative momentum offer little investment comfort.

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.

Who are ESS'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.