MTDRNEUTRAL

Return on Equity (ROE)

10.1%

Higher than 39% of Energy sector peers

Updated 9h ago

Sector Performance

39th percentile

MTDR

10.1%

Sector Median

11.8%

Sector Avg

7.3%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from its shareholders’ equity.

At 10.1%, MTDR’s ROE indicates it earns $10.10 of profit for every $100 of equity. This falls below the sector median of 11.8%, placing the company in the 39th percentile among Energy peers. The year-over-year change is not available, but quarter-over-quarter ROE dropped by 24.6% from 13.4% to 10.1%. The combination of a below-median ROE and a steep quarterly decline suggests increased risk, as profits relative to equity are shrinking. This metric contradicts the overall NEUTRAL verdict, as the deteriorating and subpar ROE points toward a more cautious outlook.

Frequently Asked Questions

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

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

MTDR's Return on Equity (ROE) of 10.1% compares to a Energy sector median of 11.8%, placing it in the 39th percentile.

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

The closest Energy peers by Return on Equity (ROE) include: TRP (11.3%), ET (12.4%), IMO (12.4%), SHEL (10.7%), ENB (10.1%).

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.