TSNNEUTRAL

Return on Equity (ROE)

2.6%

Updated 536h ago

Sector Performance

16th percentile

TSN

2.6%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

A Return on Equity (ROE) of 2.6% means that for every $100 of shareholder equity, the company generated $2.60 in net profit — a low measure of how efficiently it uses invested capital.

That figure sits far below the sector median of 13.8%, placing TSN in the 15th percentile among its peers. Trend data is not available: both the year-over-year change and quarter-over-quarter change are listed as N/A, and the last eight quarters show no trend direction. Without a trend, there is no basis to assess whether profitability is improving or deteriorating, which adds uncertainty. The combination of a very low ROE and absent trend information signals elevated risk that the company is underperforming its industry with no clear trajectory. This metric directly contradicts the overall NEUTRAL verdict, as such weak profitability would typically warrant a more cautious view.

Frequently Asked Questions

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

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 TSN'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.