WABNEUTRAL

WAB Return on Equity (ROE) Analysis

11.6%

Updated 201h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity — at 11.6%, WAB earns $0.116 for every $1 of equity.

Sector Performance

44th percentile

WAB

11.6%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

11.3%(Jul 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity — at 11.6%, WAB earns $0.116 for every $1 of equity.

This sits below the sector median of 13.8%, placing WAB at the 43rd percentile among peers, meaning roughly 57% of comparable companies achieve a higher return. The trend direction over the last 8 quarters is N/A, with a year-over-year change also N/A; however, the quarter-over-quarter change is +2.7%, moving from 11.3% to the current 11.6%. A level modestly below the sector median combined with a small quarterly gain suggests limited near-term pressure on profitability, but no clear momentum signal. For an investor, this points to average efficiency that is neither a major risk nor a compelling upside driver. This metric does not contradict the overall NEUTRAL verdict — it aligns with a view that WAB offers no standout edge or obvious weakness in capital allocation.

Frequently Asked Questions

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

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 WAB's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.