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Western Midstream Partners LP (NYSE:WES) ROE % Explanation
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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
Western Midstream Partners LP ROE % Related Terms
Western Midstream Partners LP ROE % Historical Data
* 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 Oil & Gas Midstream subindustry, Western Midstream Partners LP'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.
Western Midstream Partners LP ROE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Western Midstream Partners LP's ROE % distribution charts can be found below:
* The bar in red indicates where Western Midstream Partners LP'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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Western Midstream Partners LP (WES) has a ROE % of 42.34% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Western Midstream Partners LP and its competitors. This is 30% above median its historical median of 32.50. Over the past decade, Western Midstream Partners LP's ROE % has ranged from 17.69 to 51.31. According to the industry distribution chart, Western Midstream Partners LP ranks #60 out of 963 companies in the Oil & Gas industry, placing it in the top 6.2%.
Is Western Midstream Partners LP's ROE % too high?
Western Midstream Partners LP's current ROE % of 42.34% is 30% above median its 10-year median of 32.50. Over the past 10 years, this metric has ranged from a low of 17.69 to a high of 51.31. The Oil & Gas industry median ROE % is 6.08. Western Midstream Partners LP's value of 42.34% is 596.4% above this industry median. Based on the distribution chart, Western Midstream Partners LP ranks #60 out of 963 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Western Midstream Partners LP has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Western Midstream Partners LP's ROE % compare to PAA and DTM?
According to the Oil & Gas industry distribution chart, Western Midstream Partners LP ranks #60 out of 963 companies for ROE %. This places Western Midstream Partners LP in the top 6% of its industry — outperforming the majority of peers. The industry median ROE % is 6.08. Western Midstream Partners LP's value of 42.34% is 596.4% above this benchmark. Historically, Western Midstream Partners LP's own ROE % has ranged from 17.69 to 51.31 over the past decade. While the company's 10-year median is 32.50 vs. the industry median of 6.08, Western Midstream Partners LP has consistently been above the industry average. 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 Oil & Gas company?
The median ROE % among Oil & Gas companies is 6.08, based on 963 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. Western Midstream Partners LP's current ROE % of 42.34% is 596.4% 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 Western Midstream Partners LP and its competitors. For the Oil & Gas industry, the median ROE % is 6.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Midstream Partners LP's current ROE % is 42.34%, which is 30% above median its own 10-year median of 32.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Midstream Partners LP stock overvalued right now?
Based on GuruFocus' analysis, Western Midstream Partners LP (WES) is currently considered Fairly Valued. The stock's GF Value™ is $43.92, compared to a current price of $46.66 — trading 6.2% above its estimated fair value. The current ROE % is 42.34%, which is 30% above median its 10-year median of 32.50 and 596.4% above the Oil & Gas industry median of 6.08. Western Midstream Partners LP's overall GF Score™ is 85/100 with 9 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 Western Midstream Partners LP (WES), the current ROE % is 42.34% as of Jun. 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.
Is Western Midstream Partners LP (WES) Overvalued in 2026?
Based on GuruFocus' analysis, Western Midstream Partners LP stock appears to be overvalued.
The current stock price of $46.66 is trading 6.2% above its estimated GF Value™ of $43.92.
GuruFocus considers Western Midstream Partners LP to be Fairly Valued.
Key valuation signals for WES:
ROE %: 42.34% (30% above median its 10-year median of 32.50)
GF Value™: $43.92 vs. price of $46.66 (6.2% above fair value)
Industry Position: 596.4% above the Oil & Gas median (#60 of 963)
No single metric tells the full story. See the WES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Midstream Partners LP is a USA-based company which own, operate, acquire and develop midstream energy assets. The company through its subsidiary is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, NGLs and crude oil. It owns or has investments in assets located in the Rocky Mountains (Colorado, Utah, and Wyoming), the Mid-Continent (Kansas and Oklahoma) and Texas.
85GF Score
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