TRPNEUTRAL

Return on Equity (ROE)

11.3%

Higher than 48% of Energy sector peers

Updated 273h ago

Sector Performance

48th percentile

TRP

11.3%

Sector Median

11.8%

Sector Avg

7.3%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity — an 11.3% ROE means TRP earns $0.113 for every $1 of equity.

This result exactly matches the Energy sector median of 11.3%, placing the stock at the 50th percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter decline of -12.4% (from 12.9% to 11.3%) indicates recent downward momentum. While the absolute level is in line with the sector, a shrinking ROE can signal reduced efficiency or rising equity base, introducing a cautious note for near-term performance. This combination of a neutral level with a negative short-term trend does not strongly support or contradict the overall NEUTRAL verdict — it aligns with the view that the stock offers neither clear advantage nor immediate alarm.

Frequently Asked Questions

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

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.

How does TRP's Return on Equity (ROE) compare to its sector?

TRP's Return on Equity (ROE) of 11.3% compares to a Energy sector median of 11.8%, placing it in the 48th percentile.

Who are TRP's closest peers by Return on Equity (ROE)?

The closest Energy peers by Return on Equity (ROE) include: ET (12.4%), IMO (12.4%), SHEL (10.7%), MTDR (10.1%), ENB (10.1%).

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.