MUNEUTRAL

Return on Equity (ROE)

66.6%

Updated 80h ago

Sector Performance

93th percentile

66.6%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from the money shareholders have invested.

MU’s current ROE of 66.6% means that for every dollar of equity, the company earned about 66.6 cents in profit. This compares to a sector median of 13.7%, placing MU in the 93rd percentile among its peers — it outperforms 93% of them on this measure. The metric shows no trend direction because year-over-year change and quarter-over-quarter change are both listed as N/A, so there is no historical data to indicate whether ROE is rising or falling. The combination of an exceptionally high level with no trend data means the current reading points to strong profitability, but the lack of context on sustainability introduces uncertainty. This high ROE supports the overall NEUTRAL verdict: while the level is impressive, the absence of trend history prevents a clear upgrade, and the neutral stance reflects that balance.

Frequently Asked Questions

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

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 MU'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.