Return on Equity (ROE)
Updated 200h ago
Sector Performance
73th percentileSTZ
23.7%
Sector Median
13.8%
Sector Avg
31.4%
Deep Analysis
Return on Equity (ROE) measures how effectively a company generates profit from every dollar of shareholders’ equity — the current 23.7% means STZ earns about $0.237 for each dollar of equity invested.
This is well above the sector median of 13.8%, placing STZ in the 73rd percentile among its peers, indicating stronger profitability than most competitors. However, the year-over-year and quarter-over-quarter changes are both not available, and no trend direction over the last eight quarters can be assessed, so there is no information on whether this high ROE is improving or deteriorating. The absence of any trend data means you cannot judge if the current high level is stable or at risk, which introduces uncertainty despite the strong absolute performance. This combination — a high ROE with no trend visibility — suggests a neutral risk-opportunity profile: the current efficiency is attractive, but the lack of momentum data limits confidence in its sustainability. The neutral verdict is supported because the strong ROE level alone does not outweigh the missing trend information, leaving the stock neither a clear buy nor sell based on this metric.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about STZ?
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 STZ'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.
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23.7%
Sector Median
13.8%
Sector Avg
31.4%
How STZ's Return on Equity (ROE) compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.