Tredegar Corporation's Mixed Financials and Negative Sentiment: A Closer Look at ROE

Tredegar Corporation's stock has declined 9.2% in the past month, with a return on equity (ROE) of 1.1%. The company's ROE is lower than the industry average of 11%, leading to a five-year net income decline of 33%. The decline in earnings is attributed to Tredegar's poor capital allocation or high payout ratio. The company's ROE is calculated by dividing net profit by shareholders' equity.