NINEUTRAL

NI Return on Equity (ROE) Analysis

8.5%

Updated 273h ago·SEC filings & market data

Key Takeaway

The current Return on Equity (ROE) of 8.5% means the company earns 8.5 cents of profit for every dollar of shareholder equity, a simple measure of how efficiently it uses invested capital.

Sector Performance

33th percentile

8.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

9.1%(Aug 2026)

↓ Declining

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Deep Analysis

The current Return on Equity (ROE) of 8.5% means the company earns 8.5 cents of profit for every dollar of shareholder equity, a simple measure of how efficiently it uses invested capital.

That is below the sector median of 13.5%, placing NI in the 32nd percentile among sector peers, so roughly two-thirds of comparable companies generate higher returns on equity. The year-over-year change is N/A, meaning no comparable prior-year figure exists, but the quarter-over-quarter change is -6.6%, and historical values show ROE fell from 9.1% to 8.5% most recently. The combination of a below-median ROE and a recent quarterly decline suggests weak earnings efficiency relative to peers, which adds downward pressure on the stock’s attractiveness. However, with only two data points and no annual trend available, the recent drop alone does not signal a deteriorating structural problem. This metric supports the overall NEUTRAL verdict, as it shows mediocre profitability but not an extreme weakness that would demand a negative stance.

Frequently Asked Questions

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

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 NI's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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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.