Resolute Forest Products (RFP) has a ROE of 20.09%, above the Materials sector average of 12.86%.
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+ Follow20.09%
Return on Equity measures how efficiently a company uses shareholders' equity to generate profits. A higher ROE indicates better profitability relative to equity.
Resolute Forest Products posts a ROE of 20.09%. That is above the Materials sector average of 12.86%. Comparing that reading with peers and prior periods is usually more useful than looking at the number in isolation.
For Materials stocks, a ROE near 12.86% is typical. Resolute Forest Products's 20.09% is higher that level. That is roughly 56.1% above the sector mean. Whether that is a warning or an opportunity depends on growth outlook and other fundamentals shown elsewhere on Stockcircle.
Resolute Forest Products's ROE moves when the underlying profit, equity, or asset base changes. Cost cuts, pricing power, buybacks, write-downs, and cyclical swings can all shift the percentage. The latest reading is 20.09%; use YoY and peer views to separate noise from signal.
Context for RFP's ROE usually means three checks: (1) trend versus prior periods, (2) level versus peers (average 12.86%), and (3) consistency with growth and profitability. This page covers the first two; Resolute Forest Products's other metric pages and overview cover the third.
Judging Resolute Forest Products against Materials peers is usually better than using a market-wide rule of thumb. Business models inside Materials are more comparable, which makes gaps in ROE easier to interpret. Start with 20.09% here, then scan peer and history charts to see if the gap is persistent.