XOMNEUTRAL

Return on Equity (ROE)

9.9%

Higher than 35% of Energy sector peers

Updated 73h ago

Sector Performance

35th percentile

XOM

9.9%

Sector Median

11.8%

Sector Avg

7.3%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity — ExxonMobil’s current 9.9% means it earned $0.099 for every $1 of equity.

This trails the Energy sector median of 11.8%, placing the company in the 35th percentile among peers, so its profitability is below average for the industry. Year-over-year change is not available, but the quarter-over-quarter change shows a decline of 10.8%, indicating recent weakening in earnings relative to equity. The combination of a below-median ROE with a downward quarterly trend suggests elevated risk, as the company is both underperforming its sector and losing ground. This performance contradicts the stock’s overall NEUTRAL verdict — the metric leans bearish, implying investors should be cautious about expected returns from equity.

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 9.9% compares to a Energy sector median of 11.8%, placing it in the 35th percentile.

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

The closest Energy peers by Return on Equity (ROE) include: TRP (11.3%), ET (12.4%), IMO (12.4%), SHEL (10.7%), MTDR (10.1%).

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.