IMOCAUTIOUS

Return on Equity (ROE)

12.4%

Higher than 52% of Energy sector peers

Updated 369h ago

Sector Performance

52th percentile

IMO

12.4%

Sector Median

11.8%

Sector Avg

7.3%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity; a 12.4% ROE means IMO earns $0.124 for every $1 of equity.

This sits above the sector median of 11.3%, placing IMO in the 53rd percentile among Energy peers—slightly above the midpoint. Year-over-year change is not available, but quarter-over-quarter ROE fell 15.6% from 14.7% to 12.4%, a clear recent decline. While the current ROE remains above the sector norm, the sharp quarterly drop signals that profit generation relative to equity is deteriorating. The combination of a still-above-median level with a negative short-term trend points to increased risk, as the company may be losing its efficiency edge. This metric supports the overall CAUTIOUS verdict—the declining trajectory undermines the otherwise favorable level, reinforcing the need for careful monitoring.

Frequently Asked Questions

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

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.

How does IMO's Return on Equity (ROE) compare to its sector?

IMO's Return on Equity (ROE) of 12.4% compares to a Energy sector median of 11.8%, placing it in the 52th percentile.

Who are IMO's closest peers by Return on Equity (ROE)?

The closest Energy peers by Return on Equity (ROE) include: TRP (11.3%), ET (12.4%), SHEL (10.7%), MTDR (10.1%), ENB (10.1%).

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.