XPONEUTRAL

XPO Return on Equity (ROE) Analysis

19.9%

Higher than 56% of Industrials sector peers

Updated 2150h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity—19.9% means XPO earns nearly $0.20 for every $1 of equity.

Sector Performance

56th percentile

XPO

19.9%

Sector Median

15.3%

Sector Avg

-40.0%

Prior Period

17.0%(May 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity—19.9% means XPO earns nearly $0.20 for every $1 of equity.

This is above the Industrials sector median of 12.6%, placing XPO in the 63th percentile among its peers. Year-over-year change is not available, but the metric increased 17.1% quarter-over-quarter, from 17.0% to 19.9% in the most recent two quarters. The combination of a high level (above sector median) and a rising short-term trend suggests lower investment risk relative to sector peers, as the company is improving its profitability on equity. However, the lack of a longer trend direction limits confidence in sustainability. This metric supports the NEUTRAL overall verdict: the strong ROE and positive quarterly change are positive signals, but the absence of a multi-quarter history and a neutral overall rating prevent a more bullish conclusion.

Frequently Asked Questions

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

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 XPO's Return on Equity (ROE) compare to its sector?

XPO's Return on Equity (ROE) of 19.9% compares to a Industrials sector median of 15.3%, placing it in the 56th percentile.

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

The closest Industrials peers by Return on Equity (ROE) include: PWR (15.3%), AME (13.9%), ROP (13.1%), BLDR (2.5%), ALK (2.4%).

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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.