SRENEUTRAL

SRE Return on Equity (ROE) Analysis

6.7%

Updated 225h ago·SEC filings & market data

Key Takeaway

ROE measures net income as a percentage of shareholders' equity, so 6.7% means SRE generates $0.067 of profit for each dollar of equity invested.

Sector Performance

26th percentile

SRE

6.7%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

5.7%(Jun 2026)

↑ Improving

📊

Deep Analysis

ROE measures net income as a percentage of shareholders' equity, so 6.7% means SRE generates $0.067 of profit for each dollar of equity invested.

That is below the sector median of 13.8%, placing SRE at the 25th percentile among sector peers. Trend data are not available, with year-over-year change and quarter-over-quarter change both reported as N/A. The low ROE relative to peers, combined with no trend information, leaves an unclear picture but indicates no current evidence of improving profitability. This level suggests higher risk and lower return on shareholder capital than typical sector peers. The metric supports the overall NEUTRAL verdict because it reflects underperformance but not a definitive negative trend.

Frequently Asked Questions

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

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 SRE'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%).

📚

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.