FANGNEUTRAL

FANG Return on Equity (ROE) Analysis

3.5%

Updated 297h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so 3.5% means FANG earns $0.035 for every $1 of equity invested.

Sector Performance

21th percentile

FANG

3.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

0.5%(Jul 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so 3.5% means FANG earns $0.035 for every $1 of equity invested.

That is well below the sector median of 13.6%, placing FANG in the 19th percentile among sector peers—meaning most peers generate higher returns on equity. The year-over-year change is not available, and the 8-quarter trend direction is also not available; however, the quarter-over-quarter change is +600.0%, rising from 0.5% to 3.5%. The low current level, despite a large sequential improvement, indicates the company still lags its industry, so the level poses a risk to investors seeking consistent profitability. The bounce from 0.5% offers a chance for recovery, but with no longer-term trend data, the opportunity remains unproven. This metric contradicts the overall NEUTRAL verdict because the ROE is far below the sector norm, suggesting underperformance that warrants caution.

Frequently Asked Questions

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

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 FANG'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.