PXDNEUTRAL

PXD Return on Equity (ROE) Analysis

21.1%

Higher than 56% of Energy sector peers

Updated 2916h ago·SEC filings & market data

Key Takeaway

PXD's return on equity of 21.1% means the company generates $0.21 in annual profit for every dollar of shareholder equity, indicating efficient use of shareholder capital.

Sector Performance

56th percentile

PXD

21.1%

Sector Median

16.9%

Sector Avg

14.0%

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Deep Analysis

PXD's return on equity of 21.1% means the company generates $0.21 in annual profit for every dollar of shareholder equity, indicating efficient use of shareholder capital.

This performance exceeds the energy sector median of 15.1%, placing PXD in the 75th percentile among its peers and demonstrating above-average profitability relative to invested capital. The ROE has remained flat at 21.1% over the last two quarters shown, suggesting stable but not improving operational efficiency. While the metric reflects strong capital efficiency compared to sector competitors, the lack of upward momentum raises questions about growth trajectory and the company's ability to compound returns for shareholders going forward.

Frequently Asked Questions

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

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

PXD's Return on Equity (ROE) of 21.1% compares to a Energy sector median of 16.9%, placing it in the 56th percentile.

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

The closest Energy peers by Return on Equity (ROE) include: XOM (12.6%), APA (23.5%), AR (8.4%), DEN (31.3%), ESTE (39.7%).

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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.