XELNEUTRAL

XEL Return on Equity (ROE) Analysis

9.9%

Updated 57h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how effectively a company generates profit from shareholders’ equity, with 9.9% meaning XEL earns $0.099 for each dollar of equity.

Sector Performance

38th percentile

XEL

9.9%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

9.6%(Jul 2026)

↑ Improving

📊

Deep Analysis

Return on equity (ROE) measures how effectively a company generates profit from shareholders’ equity, with 9.9% meaning XEL earns $0.099 for each dollar of equity.

That level sits below the sector median of 13.5%, placing the stock in the 37th percentile among peers, so most comparable companies achieve higher returns. The 8-quarter trend direction is not available, and the year-over-year change is also N/A, but the quarter-over-quarter change is +3.1%, with historical values improving from 9.6% to 9.9%. The combination of a below-median ROE with a small quarterly uptick suggests limited immediate risk but also no strong evidence of improving competitive standing. This metric supports the NEUTRAL verdict, as the profit efficiency is neither a clear strength nor a clear weakness relative to peers.

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: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

📚

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.