FANGNEUTRAL

Return on Equity (ROE)

0.5%

Updated 128h ago

Sector Performance

15th percentile

FANG

0.5%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures the profit a company generates for each dollar of shareholders’ equity; a current value of 0.5% means FANG earns only half a cent per dollar of equity, indicating very low profitability relative to its net worth.

Among sector peers, the median ROE is 13.8%, and FANG sits at the 15th percentile — well below the typical peer. Trend data is not available: year-over-year and quarter-over-quarter changes are both marked N/A, and no historical figures beyond the single 0.5% value are provided. Without trend information, it is impossible to tell whether ROE is improving or worsening, leaving only the weak current level to assess. The combination of a low ROE and missing trend implies elevated investment risk because the stock already underperforms peers on profitability, and there is no evidence of a turnaround. This metric contradicts the overall NEUTRAL verdict: a 0.5% ROE versus a 13.8% sector median is a clear red flag, making the neutral stance seem overly favorable given the lack of any positive momentum.

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: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

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.