TMNEUTRAL

TM Return on Equity (ROE) Analysis

12.4%

Updated 11h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity; at 12.4%, TM earns $0.124 for every $1 of equity.

Sector Performance

46th percentile

12.4%

Sector Median

13.3%

Sector Avg

17.0%

Prior Period

10.2%(Aug 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity; at 12.4%, TM earns $0.124 for every $1 of equity.

This sits below the sector median of 13.4%, with TM in the 46th percentile among peers, meaning slightly less than half of comparable companies achieve higher ROE. The metric's year-over-year change is not available, but quarter-over-quarter ROE rose 21.6%, from 10.2% to 12.4% in the most recent period. The combination of a level below the sector median with a recent quarterly improvement suggests moderate efficiency gains, but not enough to signal a clear competitive edge. For investors, this implies limited near-term pressure from weak profitability, yet no strong catalyst from returns on equity alone. This metric overall supports the NEUTRAL verdict, as the sub-median level is offset by positive momentum.

Frequently Asked Questions

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

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 TM's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: EVGO (-34.6%), 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.