WMBCAUTIOUS

WMB Return on Equity (ROE) Analysis

21.5%

Updated 633h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, and WMB’s 21.5% means it converts equity into earnings at a strong rate.

Sector Performance

70th percentile

WMB

21.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

19.7%(Aug 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, and WMB’s 21.5% means it converts equity into earnings at a strong rate.

That level beats the sector median of 13.9%, placing WMB in the 68th percentile among its peers. The year-over-year change and 8-quarter trend are not available, but the quarter-over-quarter change is +9.1%, with the prior value at 19.7%. The combination of an above-median ROE and a recent quarterly gain points to efficient capital use, yet the missing longer history limits how much certainty that offers. For an investor, the metric suggests a current efficiency advantage, but the short record leaves room for doubt about its durability. This metric contradicts the overall CAUTIOUS verdict, because the ROE level and recent momentum are both favorable relative to the sector.

Frequently Asked Questions

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

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 WMB'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.