WABNEUTRAL

Return on Equity (ROE)

11.3%

Updated 54h ago

Sector Performance

42th percentile

WAB

11.3%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

With a Return on Equity (ROE) of 11.3%, the company generates $0.113 of profit for every dollar of shareholders’ equity — a measure of how efficiently it uses invested capital to produce earnings.

This figure sits below the sector median of 13.8%, placing it at the 42nd percentile among its peers, meaning 58% of comparable companies deliver higher returns on equity. No trend data is available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and the last eight quarters show no historical values beyond the current 11.3%. The combination of a below-median ROE with no observable direction introduces uncertainty — the level alone suggests the company is less profitable relative to its sector, but without a trend, it is unclear if performance is improving or deteriorating. This metric supports the overall NEUTRAL verdict, as the ROE is neither strong enough to warrant a bullish call nor weak enough to justify a bearish one, leaving the stock in a balanced risk-reward position.

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: 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.

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WAB

11.3%

Sector Median

13.8%

Sector Avg

31.4%

How WAB's Return on Equity (ROE) compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.