STXCAUTIOUS

Return on Equity (ROE)

1788.0%

Updated 342h ago

Sector Performance

100th percentile

STX

1788.0%

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.

STX's current ROE of 1788.0% means it earned nearly $17.88 in profit for every $1 of equity, an extraordinarily high figure. In comparison, the sector median ROE is only 14.1%, placing STX at the 100th percentile among its peers. The year-over-year and quarter-over-quarter changes are both reported as N/A, and no trend data is available for the last eight quarters. An extremely high ROE like this often results from very low equity (e.g., high debt) or one-time gains, so the lack of a trend makes it impossible to assess sustainability. This combination of an extreme level with no trend history implies elevated risk if the high ROE proves temporary. The overall CAUTIOUS verdict is supported by this metric, as an ROE of this magnitude is rarely durable and may signal underlying financial leverage or non-recurring profits.

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: 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.