VMCNEUTRAL

Return on Equity (ROE)

13.5%

Updated 558h ago

Sector Performance

49th percentile

VMC

13.5%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

A Return on Equity (ROE) of 13.5% means that for every dollar of shareholders’ equity, the company generated 13.5 cents in profit over the past twelve months.

This sits just below the sector median of 13.9%, placing VMC in the 48th percentile among its sector peers—essentially middle of the pack. The year-over-year change is not available, but the quarter-over-quarter change shows a 6.3% increase from the prior quarter’s 12.7% to the current 13.5%. The combination of a near-median ROE level with a recent upward move suggests a balanced risk profile: the company is not underperforming its sector, yet the improvement does not signal a clear advantage. This metric supports the overall NEUTRAL verdict, as the ROE is virtually on par with the sector median and the quarter-over-quarter gain is modest, offering no strong reason to upgrade or downgrade the stock.

Frequently Asked Questions

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

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 VMC'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.