HRLCAUTIOUS

Return on Equity (ROE)

5.8%

Updated 174h ago

Sector Performance

23th percentile

HRL

5.8%

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 with each dollar of shareholders' equity — a 5.8% ROE means HRL earns $0.058 for every $1 of equity.

This is well below the sector median of 13.5%, placing HRL in the 23rd percentile among its sector peers, indicating lower profitability relative to the industry. Trend data is not available: year-over-year change is N/A and quarter-over-quarter change is N/A, so no direction can be inferred from historical shifts. The combination of a low ROE level and the absence of trend information suggests limited current profitability with no visible momentum to assess improvement or deterioration. This underperformance relative to peers increases the investment risk, as the company is generating weaker returns on capital than most competitors. The 5.8% ROE directly supports the overall CAUTIOUS verdict by highlighting below-average earnings efficiency that warrants careful monitoring.

Frequently Asked Questions

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

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 HRL'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.