REICAUTIOUS

REI Return on Equity (ROE) Analysis

-35.3%

Higher than 3% of Energy sector peers

Updated 253h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how effectively a company generates profit from shareholder equity — a negative value means it is destroying shareholder value.

Sector Performance

3th percentile

REI

-35.3%

Sector Median

11.3%

Sector Avg

6.9%

Prior Period

-4.2%(May 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from shareholder equity — a negative value means it is destroying shareholder value.

The current ROE of -35.3% sits far below the Energy sector median of 11.8%, placing REI in the 3th percentile among its peers. The year-over-year trend is not available, but the quarter-over-quarter change of -740.5% shows a sharp decline from the prior quarter’s -4.2% ROE. A deeply negative ROE combined with a rapidly worsening quarter-over-quarter trend signals high financial distress and elevated investment risk. This metric directly contradicts the overall CAUTIOUS verdict — a negative ROE at the 3rd percentile suggests the stock is underperforming even cautious expectations.

Frequently Asked Questions

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

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

REI's Return on Equity (ROE) of -35.3% compares to a Energy sector median of 11.3%, placing it in the 3th percentile.

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

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

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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.