HWMNEUTRAL

Return on Equity (ROE)

33.8%

Updated 224h ago

Sector Performance

84th percentile

HWM

33.8%

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 for each dollar of shareholders' equity — a 33.8% ROE means HWM earned about $0.34 for every $1 of equity over the past year.

This is well above the sector median of 14.3%, placing HWM in the 83rd percentile among its peers, indicating superior profitability relative to the industry. No trend information is available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and only a single historical value of 33.8% is provided, so we cannot assess direction or momentum. The combination of a very high current ROE with no trend data suggests the company currently generates strong returns from equity, but the absence of a track record or recent changes leaves uncertainty about whether this level is sustainable. This high ROE supports a favorable view of HWM's current efficiency, yet the lack of trend data does not contradict the overall NEUTRAL verdict — the verdict likely reflects other factors beyond this single strong metric.

Frequently Asked Questions

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

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 HWM'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.