LSPDCAUTIOUS

Return on Equity (ROE)

-9.2%

Higher than 24% of Technology sector peers

Updated 226h ago

Sector Performance

24th percentile

LSPD

-9.2%

Sector Median

8.2%

Sector Avg

2.4%

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Deep Analysis

A Return on Equity (ROE) of -9.2% means that for every dollar of shareholders’ equity, the company is losing about 9.2 cents, indicating unprofitability relative to the capital invested.

This sits far below the sector median of 8.2%, placing LSPD in the 25th percentile among its Technology peers—meaning three-quarters of competitors have a stronger ROE. The metric has been trending upward over the last eight quarters, with a quarter-over-quarter improvement of +5.2% (from -9.7% to -9.2%), though a year-over-year comparison is not available. While the rising trend suggests the loss is narrowing, the absolute level remains deeply negative, implying that the company still faces heightened investment risk from chronic unprofitability. This combination of a poor current level with a gradually improving trend modestly softens the risk but does not erase it. The negative ROE directly supports the overall CAUTIOUS verdict, as the company has not yet demonstrated the ability to generate positive returns on equity relative to its sector.

Frequently Asked Questions

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

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 LSPD's Return on Equity (ROE) compare to its sector?

LSPD's Return on Equity (ROE) of -9.2% compares to a Technology sector median of 8.2%, placing it in the 24th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%), U (-20.1%), UCTT (-22.5%).

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.