PINSNEUTRAL

Return on Equity (ROE)

8.9%

Higher than 33% of Communication Services sector peers

Updated 33h ago

Sector Performance

33th percentile

PINS

8.9%

Sector Median

14.7%

Sector Avg

18.3%

📊

Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity—a reading of 8.9% means PINS earns about 8.9 cents for every dollar of equity.

This is well below the Communication Services sector median of 14.7%, placing PINS in the 33rd percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change shows a slight improvement of +1.1% (from 8.8% to 8.9%). The combination of a below-median ROE with only a modest upward tick suggests limited profit efficiency relative to peers, posing a moderate risk for investors seeking strong capital returns. This metric supports the NEUTRAL verdict: the low relative level offsets the minor positive trend, keeping the stock in a balanced risk/reward zone.

Frequently Asked Questions

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

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

PINS's Return on Equity (ROE) of 8.9% compares to a Communication Services sector median of 14.7%, placing it in the 33th percentile.

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

The closest Communication Services peers by Return on Equity (ROE) include: DIS (11.0%), T (18.4%), DASH (9.9%), YELP (20.4%), RDDT (26.2%).

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.