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CochlearCHEOF +1.61%60 Return-on-Tangible-Asset is 14.15% as of Dec. 2025, which is 14% below its 10-year median of 16.50. GuruFocus rates CHEOF with a GF Score™ of 60/100 and a GF Value™ of $215.26 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 855 Medical Devices & Instruments companies, Cochlear ranks better than 91.58% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Cochlear's annualizedNet Income for the quarter that ended in Dec. 2025 was $215 Mil. Cochlear's average total tangible assets for the quarter that ended in Dec. 2025 was $1,517 Mil. Therefore, Cochlear's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 14.15%.
The historical rank and industry rank for Cochlear's Return-on-Tangible-Asset or its related term are showing as below:
CHEOF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -15.27 Med: 16.5 Max: 31.51
Current: 14.95
During the past 13 years, Cochlear's highest Return-on-Tangible-Asset was 31.51%. The lowest was -15.27%. And the median was 16.50%.
CHEOF's Return-on-Tangible-Asset is ranked better than 91.58% of 855
companies
in the Medical Devices & Instruments industry
Industry Median: 0.62
vs CHEOF: 14.95
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Cochlear Return-on-Tangible-Asset Related Terms
Cochlear Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Cochlear's Return-on-Tangible-Asset 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.
CHEOF vs ABT, SYK, MDT: Return-on-Tangible-Asset Comparison
For the Medical Devices subindustry, Cochlear's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Cochlear Return-on-Tangible-Asset vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Cochlear's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Cochlear's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 14.15% mean?
Cochlear (CHEOF) has a Return-on-Tangible-Asset of 14.15% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Cochlear and its competitors. This is 14% below median its historical median of 16.50. According to the industry distribution chart, Cochlear ranks #72 out of 855 companies in the Medical Devices & Instruments industry, placing it in the top 8.4%.
Is Cochlear's Return-on-Tangible-Asset too high?
Cochlear's current Return-on-Tangible-Asset of 14.15% is 14% below median its 10-year median of 16.50. The Medical Devices & Instruments industry median Return-on-Tangible-Asset is 0.62. Cochlear's value of 14.15% is 2182.3% above this industry median. Based on the distribution chart, Cochlear ranks #72 out of 855 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Cochlear has a GF Score™ of 60/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cochlear's Return-on-Tangible-Asset compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Cochlear ranks #72 out of 855 companies for Return-on-Tangible-Asset. This places Cochlear in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 0.62. Cochlear's value of 14.15% is 2182.3% above this benchmark. While the company's 10-year median is 16.50 vs. the industry median of 0.62, Cochlear 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 Return-on-Tangible-Asset for a Medical Devices & Instruments company?
The median Return-on-Tangible-Asset among Medical Devices & Instruments companies is 0.62, based on 855 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cochlear's current Return-on-Tangible-Asset of 14.15% is 2182.3% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Cochlear and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Asset is 0.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cochlear's current Return-on-Tangible-Asset is 14.15%, which is 14% below median its own 10-year median of 16.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cochlear stock overvalued right now?
Based on GuruFocus' analysis, Cochlear (CHEOF) is currently considered Significantly Undervalued. The stock's GF Value™ is $215.26, compared to a current price of $84.74 — trading 60.6% below its estimated fair value. The current Return-on-Tangible-Asset is 14.15%, which is 14% below median its 10-year median of 16.50 and 2182.3% above the Medical Devices & Instruments industry median of 0.62. Cochlear's overall GF Score™ is 60/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Cochlear (CHEOF), the current Return-on-Tangible-Asset is 14.15% as of Dec. 2025. 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 Cochlear (CHEOF) Overvalued in 2026?
Based on GuruFocus' analysis, Cochlear stock appears to be undervalued.
The current stock price of $84.74 is trading 60.6% below its estimated GF Value™ of $215.26.
GuruFocus considers Cochlear to be Significantly Undervalued.
Key valuation signals for CHEOF:
Return-on-Tangible-Asset: 14.15% (14% below median its 10-year median of 16.50)
GF Value™: $215.26 vs. price of $84.74 (60.6% below fair value)
Industry Position: 2182.3% above the Medical Devices & Instruments median (#72 of 855)
No single metric tells the full story. See the CHEOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cochlear is the leading cochlear implant device manufacturer, with around 60% global market share. Developed markets contribute 80% of group revenue, where cochlear implants are the standard of care for children with severe-to-profound hearing loss. The company also actively targets the growing cohort of seniors in developed markets. Tender-oriented emerging markets contribute the remaining 20% of group revenue. Main products include cochlear implants, bone-anchored hearing aids, and associated sound processors. In fiscal 2025, 49% of revenue came from the Americas, 34% from Europe, the Middle East, and Africa, and 18% from the Asia-Pacific segment.
60GF Score
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