KEY ROE - Return on Equity
Profitability analysis for Keycorp
Stock Price
$0.00
+0.00% today
Return on Equity (ROE)
0.0%
Poor - Low capital efficiency
Key Profitability Metrics
Return on Equity
0.0%
Profit per dollar of equity
Return on Assets
0.0%
Profit per dollar of assets
Return on Invested Capital
0.0%
Profit per dollar invested
Industry Comparison
KEY ROE
0.0%
Financials Average
12.0%
Difference
-12.0%
Below industry by 100%
KEY is underperforming Financials peers, suggesting potential for operational improvements.
DuPont Analysis - ROE Breakdown
ROE can be decomposed into three components using the DuPont formula:
ROE = Net Margin × Asset Turnover × Equity Multiplier
Net Profit Margin
0.0%
Thin margins
Asset Turnover
0.00x
Capital intensive
Equity Multiplier
0.00x
Conservative
0.0% = 0.0% × 0.00 × 0.00
What ROE Means for Investors
Capital Efficiency
KEY's negative ROE indicates the company is not generating positive returns on equity, which is a red flag for investors.
Competitive Advantage
ROE below industry average may indicate competitive pressures, operational inefficiencies, or industry headwinds affecting Keycorp.
Growth Potential
With moderate ROE, KEY may need external financing or debt to fund significant growth initiatives, potentially diluting shareholders or increasing leverage.
Leverage Consideration
KEY has conservative leverage (0.0x equity multiplier), suggesting the ROE reflects genuine operational efficiency rather than financial engineering.
Analyze KEY in Depth
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Frequently Asked Questions
What is KEY ROE (Return on Equity)?
KEY's Return on Equity (ROE) is 0.0%, which is considered poor. ROE measures how efficiently Keycorp generates profit from shareholders' equity. A negative ROE indicates the company is not profitable.
Is KEY ROE good or bad?
KEY's ROE of 0.0% is poor and below the Financials average of approximately 12.0%. Low capital efficiency. It trails industry peers by 100%.
What is the difference between ROE, ROA, and ROIC?
ROE (Return on Equity) at 0.0% measures returns on shareholder equity. ROA (Return on Assets) at 0.0% measures how efficiently KEY uses its total assets. ROIC (Return on Invested Capital) at 0.0% shows returns on all capital invested, including debt. All three metrics help evaluate Keycorp's profitability from different angles.
How does KEY generate its ROE?
KEY generates its 0.0% ROE through the DuPont formula: Net Margin (0.0%) × Asset Turnover (0.00) × Equity Multiplier (0.00). This shows thin profit margins, capital-intensive operations, and conservative capital structure.
Should I invest in KEY based on ROE?
While KEY's ROE of 0.0% is poor, ROE alone shouldn't determine investment decisions. Negative ROE indicates profitability concerns that require investigation. Consider ROE alongside other metrics like debt levels, growth rates, valuation multiples, and industry trends before investing.
What factors affect KEY Return on Equity?
KEY's ROE is affected by three key drivers: (1) Profitability - net margins from pricing power and cost management, (2) Efficiency - how well Keycorp uses its assets to generate sales, and (3) Leverage - the amount of debt used to finance operations. Financials sector dynamics, competitive positioning, management quality, and economic conditions all impact these drivers.
Disclaimer: ROE analysis is based on publicly available financial data and should not be considered financial advice. High ROE can be misleading if driven primarily by excessive leverage. Always analyze multiple metrics and consider your own research before making investment decisions.