WATNEUTRAL

Return on Equity (ROE)

5.2%

Updated 200h ago

Sector Performance

22th percentile

WAT

5.2%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' money — a 5.2% ROE means for every $100 of equity, the company earned $5.20 in net profit.

This is well below the sector median of 13.8%, placing WAT in the 21st percentile among its peers, indicating weaker profitability relative to competitors. The trend information is not available: both the year-over-year and quarter-over-quarter changes are listed as N/A, and no historical data beyond the current value exists. Without trend data, it is impossible to assess whether this low ROE is improving or deteriorating, which adds uncertainty. The combination of a low absolute level (5.2%) and missing trend suggests a cautious view, as the company may face structural profitability challenges but no directional evidence is provided. This metric contradicts the overall NEUTRAL verdict because a 21st-percentile ROE far below the sector median typically signals below-average performance, warranting a more negative stance.

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: 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.