IPNEUTRAL

IP Return on Equity (ROE) Analysis

-16.5%

Updated 201h ago·SEC filings & market data

Key Takeaway

The current Return on Equity (ROE) of -16.0% means that for every dollar of shareholders’ equity, the company is losing 16 cents — a clear sign of unprofitability relative to the capital invested.

Sector Performance

10th percentile

-16.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

-16.0%(Jul 2026)

↓ Declining

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Deep Analysis

This places the company well below the sector median of 13.8% and in the 9th percentile among its peers, indicating it is among the worst performers in its industry on this measure. Because the year-over-year and quarter-over-quarter changes are both listed as N/A, there is no trend data available to assess whether the ROE is improving or worsening. The combination of a deeply negative ROE with no trend information signals a material investment risk, as the company is currently destroying shareholder value without any insight into direction. This metric directly contradicts the overall NEUTRAL verdict, as a negative ROE far below the sector median typically warrants a more cautious outlook.

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: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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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.