POWINEUTRAL

POWI Return on Equity (ROE) Analysis

3.6%

Updated 84h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity — a 3.6% ROE means POWI earns $0.036 for every $1 of equity.

Sector Performance

20th percentile

POWI

3.6%

Sector Median

13.3%

Sector Avg

17.0%

Prior Period

2.4%(Jul 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity — a 3.6% ROE means POWI earns $0.036 for every $1 of equity.

That level is well below the sector median of 13.5%, placing POWI in the 19th percentile among peers, indicating weaker profitability relative to its industry. The long-term trend direction is N/A, with no year-over-year figure available; however, the quarter-over-quarter change is +50.0%, improving from 2.4% to 3.6% in the most recent period. The combination of a low absolute ROE with a recent upward move suggests limited current profitability but some early momentum, which carries both the risk of underperformance and the opportunity for continued recovery. This metric supports the overall NEUTRAL verdict: the low ROE justifies caution, while the positive QoQ change prevents an outright negative assessment.

Frequently Asked Questions

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

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

The closest peers by Return on Equity (ROE) include: EVGO (-34.6%), 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.