SONEUTRAL

SO Return on Equity (ROE) Analysis

11.5%

Updated 33h ago·SEC filings & market data

Key Takeaway

The current Return on Equity (ROE) of 11.5% means the company generates $0.115 of net income for every $1 of shareholder equity, measuring how efficiently it turns invested capital into profit.

Sector Performance

43th percentile

11.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

11.0%(Jul 2026)

↑ Improving

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Deep Analysis

The current Return on Equity (ROE) of 11.5% means the company generates $0.115 of net income for every $1 of shareholder equity, measuring how efficiently it turns invested capital into profit.

This sits below the sector median of 13.8%, placing SO at the 43rd percentile among peers. Year-over-year change is not available, but quarter-over-quarter ROE rose by 4.5%, moving from 11.0% to 11.5% per the historical values listed. The level is below the sector average, yet the recent quarterly improvement suggests a short-term upward push in profitability. This combination implies moderate investment risk: underperformance relative to peers is tempered by the latest gain in returns. The metric supports the overall NEUTRAL verdict, as it reflects neither a clear competitive advantage nor a deteriorating trend.

Frequently Asked Questions

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

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

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), 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.