IPNEUTRAL

Return on Equity (ROE)

-16.0%

Updated 413h ago

Sector Performance

9th percentile

-16.0%

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 shareholder equity; a negative value of -16.0% means the company lost money relative to its equity base.

This is far below the sector median of 14.3%, placing IP in the 8th percentile among its peers—well into the bottom tier. Trend data is not available, as both year-over-year and quarter-over-quarter changes are listed as N/A, so there is no way to determine whether performance is improving or worsening. The combination of a deeply negative ROE with no trend information highlights a clear risk: the company is currently destroying shareholder value, and without trajectory data, investors cannot gauge if this is a temporary issue or a persistent problem. This metric contradicts the overall NEUTRAL verdict, because a -16.0% ROE sitting at the 8th percentile signals fundamental weakness that would typically warrant a cautious or negative view rather than a neutral one.

Frequently Asked Questions

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

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 IP'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.