MPCAUTIOUS

MP Return on Equity (ROE) Analysis

-4.2%

Higher than 7% of Basic Materials sector peers

Updated 70h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; a negative -4.2% means MP is losing money relative to its equity base.

Sector Performance

7th percentile

-4.2%

Sector Median

12.5%

Sector Avg

12.6%

Prior Period

-3.6%(May 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; a negative -4.2% means MP is losing money relative to its equity base.

This sits well below the Basic Materials sector median of 12.5%, placing MP in the 7th percentile among peers—meaning only 7% of sector companies have a lower ROE. The year-over-year change is not available (N/A), but the quarter-over-quarter change shows a further decline of -16.7% from -3.6% to -4.2%, indicating the loss has deepened recently. Combining a deeply negative ROE with a worsening trend points to elevated investment risk, as the company is not only underperforming but also moving further into unprofitable territory. This metric strongly supports the overall CAUTIOUS verdict, since negative returns on equity are a clear warning sign of weak profitability and potential financial strain.

Frequently Asked Questions

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

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

MP's Return on Equity (ROE) of -4.2% compares to a Basic Materials sector median of 12.5%, placing it in the 7th percentile.

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

The closest Basic Materials peers by Return on Equity (ROE) include: MAG (12.5%), CDE (12.1%), RGLD (12.0%), RIO (16.4%), AEM (18.0%).

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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.