UCAUTIOUS

Return on Equity (ROE)

-20.1%

Higher than 19% of Technology sector peers

Updated 30h ago

Sector Performance

19th percentile

-20.1%

Sector Median

8.7%

Sector Avg

2.7%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity; a negative ROE means the company is losing money relative to its equity base.

U's current ROE of -20.1% is far below the technology sector median of 8.7%, placing it in the 19th percentile among its peers, indicating much weaker profitability than most competitors. The year-over-year change is not available (N/A), but quarter-over-quarter the ROE worsened by -62.1%, moving from -12.4% to -20.1% in the most recent period. Despite the lack of a multi-quarter trend, the deeply negative level combined with the sharp quarterly deterioration signals elevated risk: the company is not only unprofitable but its losses are accelerating. This combination points to a high chance of further capital erosion or the need for external financing, making it a speculative investment at best. The metric strongly supports the overall CAUTIOUS verdict, as the extreme negative ROE and its rapid decline are clear red flags for any investor.

Frequently Asked Questions

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

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 U's Return on Equity (ROE) compare to its sector?

U's Return on Equity (ROE) of -20.1% compares to a Technology sector median of 8.7%, placing it in the 19th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: GRAB (4.8%), WIT (15.4%), AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%).

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.