TELNEUTRAL

Return on Equity (ROE)

22.7%

Updated 8h ago

Sector Performance

72th percentile

TEL

22.7%

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, with a current 22.7% meaning TEL earns about $0.227 for every $1 of equity.

This sits well above the sector median of 13.8%, placing TEL in the 72nd percentile among its sector peers, indicating above-average profitability. The trend data is not available — year-over-year change, quarter-over-quarter change, and the last eight quarters are all marked as N/A, so no directional signal can be drawn from history. The combination of a high ROE level with no trend information suggests a current strength in earnings efficiency, but the lack of historical context leaves uncertainty about whether this performance is improving or deteriorating. Given that the ROE is strong and well above the peer median, it supports the overall NEUTRAL verdict by confirming the company is performing well without pushing it into a clear buy or sell zone. The metric alone does not justify a more positive or negative stance, consistent with a neutral outlook.

Frequently Asked Questions

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

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 TEL'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.