RXRXCAUTIOUS

RXRX Return on Equity (ROE) Analysis

-56.6%

Updated 155h ago·SEC filings & market data

Key Takeaway

A Return on Equity (ROE) of -56.6% means RXRX is losing $0.566 for every dollar of shareholder equity, indicating the company is burning through invested capital rather than generating profit.

Sector Performance

4th percentile

RXRX

-56.6%

Sector Median

13.3%

Sector Avg

17.0%

Prior Period

-57.2%(Aug 2026)

↑ Improving

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Deep Analysis

A Return on Equity (ROE) of -56.6% means RXRX is losing $0.566 for every dollar of shareholder equity, indicating the company is burning through invested capital rather than generating profit.

This sits far below the sector median of 13.5%, placing the company in the 5th percentile among peers—meaning 95% of comparable firms have a higher ROE. The trend is largely undefined: year-over-year change is N/A, but the most recent quarter shows +1.0% improvement, with historical values moving from -57.2% to -56.6%. A deeply negative ROE combined with a marginal quarterly improvement signals persistent losses with only a faint sign of stabilization, posing high investment risk rather than opportunity. This metric directly contradicts any expectation of profitability and supports the overall CAUTIOUS verdict on the stock.

Frequently Asked Questions

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

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 RXRX'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.