ROE and revenue growth guide

ROE

ROE measures profit generated from shareholder equity. High ROE can indicate a strong business, but it may also be amplified by debt, buybacks, temporary gains, or a small equity base. Compare ROE with leverage and free cash flow before drawing conclusions.

Revenue growth

Revenue growth shows whether the business is expanding, but growth alone does not guarantee shareholder value. Inflation, acquisitions, currency effects, and low-margin expansion can make headline growth look stronger than the underlying business.

Useful questions

• Is growth organic or acquisition-driven?
• Are margins and cash flow improving with revenue?
• Is ROE stable across several years?
• How does the company compare with direct competitors?