STXCAUTIOUS

STX Return on Equity (ROE) Analysis

371.5%

Updated 33h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; the current 371.5% means STX produces $3.72 of profit per $1 of equity, an unusually high figure.

Sector Performance

99th percentile

STX

371.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

1788.0%(Jul 2026)

↓ Declining

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Deep Analysis

This vastly exceeds the sector median of 13.4%, placing the stock in the 99th percentile among peers. The trend direction over the last 8 quarters is N/A, with no year-over-year change available, but quarter-over-quarter ROE fell by 79.2% from the prior reading of 1788.0%. The combination of an extreme level and a sharp quarterly collapse suggests the prior ROE was unsustainable and current profitability may be deteriorating quickly, raising risk rather than offering a clear opportunity. This directly supports the overall cautious verdict: the metric’s level is exceptional, but its rapid decline undermines confidence in its persistence.

Frequently Asked Questions

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

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 STX'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.