SONEUTRAL

Return on Equity (ROE)

11.0%

Updated 32h ago

Sector Performance

41th percentile

11.0%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' equity — an 11.0% ROE means that for every dollar of equity, the company earned $0.11 in net profit over the past year.

This is below the sector median of 13.8%, placing SO in the 41st percentile among its peers, indicating it trails a majority of competitors in profitability efficiency. The metric lacks any trend data: the year-over-year change and quarter-over-quarter change are both listed as N/A, and no historical values beyond the current 11.0% are available, so no direction can be inferred. Without a trend, the combination of a below-median ROE and no historical context suggests a neutral risk profile — the company is not outperforming its sector, but there is no evidence of deterioration or improvement to justify an opportunity. This metric supports the overall NEUTRAL verdict: the ROE level is weaker than the sector median, but the absence of trend data prevents a clear bullish or bearish tilt, consistent with a neutral stance.

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: 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.