MSTRCAUTIOUS

MSTR Return on Equity (ROE) Analysis

-30.8%

Higher than 14% of Technology sector peers

Updated 96h 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 ROE like -30.8% means the company is losing money relative to the equity invested.

Sector Performance

14th percentile

MSTR

-30.8%

Sector Median

6.8%

Sector Avg

-3.9%

Prior Period

-7.9%(May 2026)

↓ Declining

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Deep Analysis

This figure sits well below the technology sector median of 6.9%, placing MSTR in the 12th percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter decline of -289.9% shows the metric worsened sharply from -7.9% to -30.8%. A deeply negative ROE combined with a steep quarterly drop signals elevated risk, as the company is not only unprofitable but rapidly becoming more loss-making on a per-equity basis. This performance directly contradicts the overall CAUTIOUS verdict, instead reinforcing the need for caution given the poor and deteriorating profitability.

Frequently Asked Questions

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

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

MSTR's Return on Equity (ROE) of -30.8% compares to a Technology sector median of 6.8%, placing it in the 14th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: ANSS (9.5%), QRVO (10.1%), ARM (10.9%), ACLS (11.6%), MNDY (12.8%).

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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.