LYBNEUTRAL

Return on Equity (ROE)

-6.0%

Updated 510h ago

Sector Performance

11th percentile

LYB

-6.0%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

A Return on Equity (ROE) of -6.0% means the company generated a net loss of $6 for every $100 of shareholder equity over the past twelve months, indicating it is not earning a profit on the money investors have put in.

This is well below the sector median of 13.9%, placing it at the 11th percentile among peers—meaning 89% of competitors have a higher ROE. The year-over-year change is not available, but the quarter-over-quarter change shows an improvement of +18.9%, from -7.4% to -6.0%. While the negative level signals financial stress, the upward quarterly trend hints at a potential bottoming process, which reduces some immediate risk but does not eliminate it. This combination of a weak absolute ROE with a recent improvement does not contradict the overall NEUTRAL verdict, as the stock is neither clearly failing nor decisively recovering.

Frequently Asked Questions

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

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 LYB'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.