GWRENEUTRAL

GWRE Return on Equity (ROE) Analysis

11.9%

Updated 471h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' equity; GWRE's current ROE of 11.9% means it earns $0.119 for every dollar of equity.

Sector Performance

43th percentile

GWRE

11.9%

Sector Median

13.8%

Sector Avg

31.9%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' equity; GWRE's current ROE of 11.9% means it earns $0.119 for every dollar of equity.

This sits below the sector median of 13.8%, placing GWRE in the 44th percentile among its peers, indicating slightly lower profitability efficiency than the typical sector company. There is no trend data available because the year-over-year change, quarter-over-quarter change, and last eight quarters are all marked N/A, with only a single historical value of 11.9% provided. The combination of a below-median ROE with no observable trend suggests a stable but unremarkable risk-return profile, offering neither obvious improvement nor deterioration to assess. This metric supports the overall NEUTRAL verdict, as the ROE is modestly underperforming the sector median without any directional change to warrant a bullish or bearish shift.

Frequently Asked Questions

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

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

The closest peers by Return on Equity (ROE) include: VRSN (-38.3%), MRNA (-39.0%), MSCI (-45.3%), SNOW (-54.9%), RIVN (-57.5%).

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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.