NWSANEUTRAL

Return on Equity (ROE)

6.5%

Updated 56h ago

Sector Performance

25th percentile

NWSA

6.5%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

A Return on Equity (ROE) of 6.5% means that for every $100 of shareholder equity invested in the company, it generated $6.50 in profit over the past year.

That is below the sector median of 13.8%, placing the stock in the 26th percentile among its peers. No year-over-year or quarter-over-quarter changes are available, and there is no trend data for the last eight quarters since only one historical value is reported. With both the level and trend marked as unknown, the lack of directional data increases uncertainty around whether the company’s profitability is improving or deteriorating. The low ROE relative to the sector suggests below-average efficiency, but without a trend, it is unclear if this represents a persistent weakness or a temporary condition. This metric supports the overall NEUTRAL verdict because the below-median return is a negative signal, yet the absence of trend data prevents a stronger bearish or bullish conclusion.

Frequently Asked Questions

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

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 NWSA'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.