Talen EnergyTLN -1.46%33 ROE % is 23.27% as of Mar. 2026. GuruFocus rates TLN with a GF Score™ of 33/100. The stock has 8 warning signs investors should review. Among 433 Utilities - Independent Power Producers companies, Talen Energy ranks worse than 71.36% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Talen Energy's annualized net income for the quarter that ended in Mar. 2026 was $252 Mil. Talen Energy's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $1,083 Mil. Therefore, Talen Energy's annualized ROE % for the quarter that ended in Mar. 2026 was 23.27%.
The historical rank and industry rank for Talen Energy's ROE % or its related term are showing as below:
TLN'
s ROE % Range Over the Past 10 Years
Min: -363.1 Med: -6.82 Max: 51.93
Current: -1.73
During the past 10 years, Talen Energy's highest ROE % was 51.93%. The lowest was -363.10%. And the median was -6.82%.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Talen Energy ROE % Related Terms
Talen Energy ROE % Historical Data
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The historical data trend for Talen Energy's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Independent Power Producers subindustry, Talen Energy's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Talen Energy ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Talen Energy's ROE % distribution charts can be found below:
* The bar in red indicates where Talen Energy's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Talen Energy (TLN) has a ROE % of 23.27% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Talen Energy and its competitors. According to the industry distribution chart, Talen Energy ranks #309 out of 433 companies in the Utilities - Independent Power Producers industry, placing it in the top 71.4%.
Is Talen Energy's ROE % too high?
Talen Energy's current ROE % is 23.27%. The Utilities - Independent Power Producers industry median ROE % is 3.80. Talen Energy's value of 23.27% is 512.4% above this industry median. Based on the distribution chart, Talen Energy ranks #309 out of 433 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Talen Energy has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does Talen Energy's ROE % compare to OKLO and NRG?
According to the Utilities - Independent Power Producers industry distribution chart, Talen Energy ranks #309 out of 433 companies for ROE %. This places Talen Energy in the lower half of its industry. The industry median ROE % is 3.80. Talen Energy's value of 23.27% is 512.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Utilities - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.80, based on 433 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Talen Energy's current ROE % of 23.27% is 512.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Talen Energy and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Talen Energy's current ROE % is 23.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Talen Energy stock overvalued right now?
Talen Energy (TLN) has a current ROE % of 23.27%. The current ROE % is 23.27% and 512.4% above the Utilities - Independent Power Producers industry median of 3.80. Talen Energy's overall GF Score™ is 33/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Talen Energy (TLN), the current ROE % is 23.27% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Talen Energy Corp is an independent power producer and energy infrastructure company based in the United States. It owns and operates several gigawatts of power infrastructure in the United States, including 2.2GW of nuclear power and a dispatchable fossil fleet. The company produces and sells electricity, capacity, and ancillary services into wholesale U.S. power markets, with its generation fleet principally located in the Mid-Atlantic, Ohio, and Montana. Talen's operating segments are: PJM and Others. The PJM segment, which generates maximum revenue, is engaged in electricity generation, marketing activities, and commodity risk and fuel management within the PJM market and is comprised of Susquehanna and Talen's natural gas and coal generation facilities in PJM.
33GF Score
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