MODNCAUTIOUS

MODN Return on Equity (ROE) Analysis

-29.4%

Higher than 14% of Technology sector peers

Updated 1035h ago·SEC filings & market data

Key Takeaway

A Return on Equity (ROE) of -29.4% means Model N is losing money relative to the equity shareholders have invested — for every dollar of equity, the company generates a loss of roughly 29 cents.

Sector Performance

14th percentile

MODN

-29.4%

Sector Median

6.9%

Sector Avg

-3.3%

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Deep Analysis

A Return on Equity (ROE) of -29.4% means Model N is losing money relative to the equity shareholders have invested — for every dollar of equity, the company generates a loss of roughly 29 cents.

This metric places the company far below its Technology sector peers, where the median ROE is 6.7%, and puts Model N in the 10th percentile — meaning 90% of sector peers have a higher ROE. The year-over-year and quarter-over-quarter changes are both listed as N/A, and the trend direction over the last eight quarters is also N/A, so no historical pattern is available to assess whether this poor performance is improving or worsening. The combination of a deeply negative ROE with no trend data signals elevated investment risk, as the company is not generating returns from its equity base and there is no evidence of a turnaround. This metric directly supports the overall CAUTIOUS verdict: a -29.4% ROE far below the sector median of 6.7% reinforces caution.

Frequently Asked Questions

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

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

MODN's Return on Equity (ROE) of -29.4% compares to a Technology sector median of 6.9%, placing it in the 14th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: SMTC (-5.8%), COHU (-7.0%), LSPD (-9.2%), AMBA (-12.8%), WIX (-13.8%).

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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.