SJMCAUTIOUS

Return on Equity (ROE)

-2.4%

Updated 80h ago

Sector Performance

13th percentile

SJM

-2.4%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity; a negative value means the company is losing money relative to its net worth.

SJM's current ROE of -2.4% sits far below the sector median of 13.7%, placing it in the 13th percentile among its peers. Trend data for this metric is not available, as the year-over-year and quarter-over-quarter changes are both listed as N/A, and no prior eight-quarter history is provided. The combination of a negative ROE with no observable trend creates an unclear risk profile, offering no evidence of improvement or deterioration. This weak level of profitability directly contradicts the overall CAUTIOUS verdict, as a poor ROE supports a cautious stance on the stock.

Frequently Asked Questions

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

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 SJM's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

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.