REI Return on Equity (ROE) Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; a -26.7% ROE means REI is losing $0.267 for every $1 of equity, eroding investor capital.

This sits far below the sector median of 13.6%, placing REI in the 6th percentile among peers, indicating nearly all comparable companies achieve far better returns. The eight-quarter trend direction is N/A, with no year-over-year change reported, but the quarter-over-quarter change is +24.4%, showing a recent improvement from the prior -35.3% ROE. Despite that quarterly uptick, the level remains deeply negative, so the combination signals high investment risk: capital is still being destroyed, though at a slower pace. This metric directly supports the overall CAUTIOUS verdict, since a sub-zero ROE in the 6th percentile is a clear red flag for profitability and shareholder value creation.

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