XOMNEUTRAL

XOM Return on Equity (ROE) Analysis

12.6%

Higher than 44% of Energy sector peers

Updated 197h ago·SEC filings & market data

Key Takeaway

The current Return on Equity (ROE) of 12.6% means ExxonMobil generates $12.60 in net profit for every $100 of shareholders’ equity, measuring how efficiently it turns invested capital into earnings.

Sector Performance

44th percentile

XOM

12.6%

Sector Median

16.9%

Sector Avg

14.0%

Prior Period

9.9%(Jul 2026)

↑ Improving

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Deep Analysis

This sits above the Energy sector median of 8.4%, placing the company at the 58th percentile among its sector peers. The year-over-year change is not available, but the quarter-over-quarter change is +27.3%, with ROE rising from 9.9% to 12.6% in the most recent period. The level is solidly above the sector norm, and the sharp quarterly improvement suggests recent earnings momentum, though the missing year-over-year data limits confidence in the trend’s durability. For an investor, this combination signals a lower risk of poor capital efficiency than the sector average, but the lack of longer-term trend data leaves room for cyclical volatility. This performance supports the overall NEUTRAL verdict: the strong ROE and improvement are positive, but they do not override other factors that keep the stock balanced between risk and opportunity.

Frequently Asked Questions

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

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.

How does XOM's Return on Equity (ROE) compare to its sector?

XOM's Return on Equity (ROE) of 12.6% compares to a Energy sector median of 16.9%, placing it in the 44th percentile.

Who are XOM's closest peers by Return on Equity (ROE)?

The closest Energy peers by Return on Equity (ROE) include: PXD (21.1%), APA (23.5%), AR (8.4%), DEN (31.3%), ESTE (39.7%).

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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.