UDRNEUTRAL

Return on Equity (ROE)

12.4%

Updated 416h ago

Sector Performance

46th percentile

UDR

12.4%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from every dollar of shareholders' equity—12.4% means UDR earned roughly 12.4 cents of profit for each dollar of equity.

This lags the sector median of 14.3%, placing UDR at the 44th percentile among its peers, indicating below-average profitability efficiency relative to competitors. Year-over-year data is not available, but the quarter-over-quarter change shows a 7.8% increase, and the only two reported values (12.4% then 11.5%) suggest a recent uptick after a prior decline. The combination of a below-median ROE level with a positive quarterly trend implies a potential opportunity if the improvement continues, but also carries risk if the company cannot sustain the gain. This metric neither strongly supports nor contradicts the overall NEUTRAL verdict—the current return is unexciting relative to peers, yet the recent improvement offers a reason to watch rather than dismiss the stock.

Frequently Asked Questions

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

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 UDR'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.