NWSNEUTRAL

Return on Equity (ROE)

6.5%

Updated 128h ago

Sector Performance

25th percentile

NWS

6.5%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

The current Return on Equity (ROE) of 6.5% means that for every dollar of shareholders’ equity, the company generated 6.5 cents in net profit over the trailing twelve months.

This is well below the sector median of 14.3%, placing NWS in the 24th percentile among its peers — meaning 76% of similar companies achieve a higher ROE. The year-over-year change is not available, but the quarter-over-quarter change shows a +22.6% improvement from the prior quarter’s 5.3% to the current 6.5%. The low level relative to the sector suggests limited profitability efficiency, yet the recent quarterly uptick hints at a potential recovery in earnings relative to equity. This combination of a below-median level with a positive short-term trend creates a mixed risk profile: the absolute performance remains weak, but the direction may reduce downside risk if sustained. The metric supports the overall NEUTRAL verdict, as the ROE is neither strong enough to signal a buy nor poor enough to trigger a sell, given the improving but still lagging position.

Frequently Asked Questions

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

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 NWS'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.

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NWS

6.5%

Sector Median

13.8%

Sector Avg

31.4%

How NWS's Return on Equity (ROE) compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.