PSXNEUTRAL

Return on Equity (ROE)

14.5%

Higher than 65% of Energy sector peers

Updated 368h ago

Sector Performance

65th percentile

PSX

14.5%

Sector Median

11.8%

Sector Avg

7.3%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity — a 14.5% ROE means PSX earned $0.145 for every $1 of equity.

This is above the Energy sector median of 11.3%, placing PSX in the 66th percentile among its peers. Both year-over-year and quarter-over-quarter changes are reported as N/A, so no trend data is available to assess whether ROE is improving or weakening. Without a trend, the current above-median level suggests moderate efficiency but provides no signal about momentum, leaving the investment outlook neutral on this metric alone. This metric supports the overall NEUTRAL verdict: the ROE is solid relative to peers, yet the absence of historical direction prevents a stronger bullish or bearish tilt.

Frequently Asked Questions

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

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

PSX's Return on Equity (ROE) of 14.5% compares to a Energy sector median of 11.8%, placing it in the 65th percentile.

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

The closest Energy peers by Return on Equity (ROE) include: TRP (11.3%), ET (12.4%), IMO (12.4%), SHEL (10.7%), MTDR (10.1%).

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.