XELNEUTRAL

Return on Equity (ROE)

9.6%

Updated 82h ago

Sector Performance

35th percentile

XEL

9.6%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from shareholders’ money — a 9.6% ROE means XEL earns $0.096 for every dollar of equity.

That figure sits below the sector median of 13.7%, placing XEL in the 35th percentile among its peers, indicating weaker profitability compared to most companies in its industry. No year-over-year or quarter-over-quarter data is available, and the trend direction over the past eight quarters cannot be assessed, leaving no basis to judge whether performance is improving or declining. The combination of a below-median ROE level with no trend data suggests a neutral risk profile — neither a clear warning nor a clear opportunity emerges from the metric alone. This outcome directly supports the overall NEUTRAL verdict on the stock, as the lack of movement and middling peer ranking do not tilt the narrative toward bullish or bearish.

Frequently Asked Questions

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

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 XEL'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.