WATNEUTRAL

WAT Return on Equity (ROE) Analysis

1.9%

Updated 321h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity, so 1.9% means it earns about 1.9 cents per dollar of invested equity.

Sector Performance

18th percentile

WAT

1.9%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

5.2%(Jul 2026)

↓ Declining

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity, so 1.9% means it earns about 1.9 cents per dollar of invested equity.

This sits far below the sector median of 13.5%, placing the company in the 17th percentile among peers. Trend data are not available: both the year-over-year change and quarter-over-quarter change are reported as N/A, and the only historical value listed is the current 1.9%. The combination of a low ROE and no observable direction suggests the company is currently delivering weak returns on capital without any evidence of improvement, which adds downside risk. This metric supports the overall NEUTRAL verdict, since the weak ROE raises concerns, but the lack of trend information prevents a stronger bearish or bullish call.

Frequently Asked Questions

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

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 WAT'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.