SWKNEUTRAL

Return on Equity (ROE)

4.2%

Updated 32h ago

Sector Performance

20th percentile

SWK

4.2%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from shareholders’ money — a 4.2% ROE means SWK earned $0.042 for each dollar of equity.

This is well below the sector median of 13.8%, placing SWK in the 20th percentile among its peers, indicating weaker profitability relative to the industry. Trend data is not available: the year-over-year change is N/A and the quarter-over-quarter change is N/A, so no directional insight can be drawn from recent performance. The combination of a low ROE (4.2%) with no trend information suggests limited visibility into whether the company is improving or deteriorating, heightening uncertainty for investors. This lack of a positive or improving profitability signal does not support a bullish case but also does not confirm a bearish one. Therefore, the weak ROE level and absence of trend data are consistent with the overall NEUTRAL verdict, as the metric alone does not provide a strong reason to either buy or sell.

Frequently Asked Questions

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

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 SWK'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.