GDDYNEUTRAL

GDDY Return on Equity (ROE) Analysis

442.9%

Updated 228h ago·SEC filings & market data

Key Takeaway

A return on equity (ROE) of 442.9% means the company generates $4.43 of profit for every $1 of shareholder equity, a measure of how efficiently it uses invested capital.

Sector Performance

100th percentile

GDDY

442.9%

Sector Median

13.3%

Sector Avg

17.0%

Prior Period

398.2%(Jul 2026)

↑ Improving

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Deep Analysis

A return on equity (ROE) of 442.9% means the company generates $4.43 of profit for every $1 of shareholder equity, a measure of how efficiently it uses invested capital.

This far exceeds the sector median of 13.4%, placing the company in the 100th percentile among peers. The year-over-year change is not available, but the quarter-over-quarter change is +11.2%, moving from 398.2% to 442.9% in the most recent period. The extreme level signals very high profitability relative to equity, though with only two historical data points, the trend direction over eight quarters cannot be confirmed. This combination suggests an opportunity tied to strong earnings, but the limited trend data adds uncertainty about persistence. The metric supports the overall NEUTRAL verdict because the outstanding ROE is a positive factor, yet the absence of a longer trend and the extreme magnitude may not offset other risks considered in the rating.

Frequently Asked Questions

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

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 GDDY's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: EVGO (-34.6%), 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.