WMBCAUTIOUS

Return on Equity (ROE)

19.7%

Updated 246h ago

Sector Performance

67th percentile

WMB

19.7%

Sector Median

13.8%

Sector Avg

31.4%

📊

Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from every dollar of shareholders’ equity—at 19.7%, WMB earns nearly 20 cents for each dollar of equity.

This exceeds the sector median of 13.8%, placing the firm in the 66th percentile among its peers. While the year-over-year change is not available, the metric fell 3.4% quarter-over-quarter from 20.4% to 19.7%, with no clear trend direction over the last eight quarters. The current ROE remains above average, but the recent decline suggests tightening efficiency rather than accelerating performance. For investors, this combination of a strong level with a negative short-term move signals a moderate opportunity with a growing risk of slowing returns. This metric supports the overall CAUTIOUS verdict because the elevated ROE is under pressure from the quarterly drop, warranting a watchful stance.

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: 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.