GENNEUTRAL

Return on Equity (ROE)

39.9%

Updated 440h ago

Sector Performance

87th percentile

GEN

39.9%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity.

At 39.9%, GEN earns about $0.40 for every $1 of equity, a very high level. That figure places it well above the sector median of 14.3% and in the 86th percentile among peers, meaning it outperforms most of them. The year-over-year change is not available, but the quarter-over-quarter change is +7.0% (from 37.3% to 39.9%), showing recent improvement. With an already elevated ROE that is still rising, the combination suggests strong profitability in the near term, though the lack of a longer trend means sustainability is uncertain. This metric alone does not contradict the overall NEUTRAL verdict, as the high ROE may be offset by other factors in the broader assessment.

Frequently Asked Questions

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

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 GEN'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.