NOWNEUTRAL

NOW Return on Equity (ROE) Analysis

14.2%

Higher than 14% of TECHNOLOGY sector peers

Updated 1165h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, and NOW's current 14.2% means it earns $0.142 for every dollar invested by shareholders.

Sector Performance

14th percentile

NOW

14.2%

Sector Median

30.6%

Sector Avg

33.6%

Prior Period

16.1%(Jul 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, and NOW's current 14.2% means it earns $0.142 for every dollar invested by shareholders.

This is well below the sector median of 33.8%, placing the company in the 17th percentile among technology peers—meaning most competitors generate higher returns on equity. The trend data is limited: the year-over-year change is not available, as is the 8-quarter trend, but the quarter-over-quarter change shows a decline of -11.8%, with ROE dropping from 16.1% to 14.2% based on recent historical values. The combination of a low absolute ROE and a recent downward move suggests weaker profitability relative to sector peers, which raises the risk that the company is not efficiently converting equity into earnings. This metric therefore contradicts a bullish case but does not outright sink the NEUTRAL verdict, as the ROE remains positive and the company is not losing money. It supports the NEUTRAL stance by indicating below-average performance that warrants caution but not a clear sell signal.

Frequently Asked Questions

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

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

NOW's Return on Equity (ROE) of 14.2% compares to a TECHNOLOGY sector median of 30.6%, placing it in the 14th percentile.

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

The closest TECHNOLOGY peers by Return on Equity (ROE) include: QCOM (33.8%), CSCO (27.3%), TXN (35.2%), MRVL (16.5%), LRCX (65.1%).

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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.