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Sonic HealthcareSTU:SAB -1.12%71 Return-on-Tangible-Asset is 8.20% as of Dec. 2025, which is 63% below its 10-year median of 22.46. GuruFocus rates STU:SAB with a GF Score™ of 71/100 and a GF Value™ of €19.92 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 213 Medical Diagnostics & Research companies, Sonic Healthcare ranks better than 78.87% 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. Sonic Healthcare's annualizedNet Income for the quarter that ended in Dec. 2025 was €298 Mil. Sonic Healthcare's average total tangible assets for the quarter that ended in Dec. 2025 was €3,633 Mil. Therefore, Sonic Healthcare's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 8.20%.
The historical rank and industry rank for Sonic Healthcare's Return-on-Tangible-Asset or its related term are showing as below:
STU:SAB'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 8.7 Med: 22.46 Max: 39.54
Current: 8.7
During the past 13 years, Sonic Healthcare's highest Return-on-Tangible-Asset was 39.54%. The lowest was 8.70%. And the median was 22.46%.
STU:SAB's Return-on-Tangible-Asset is ranked better than 78.87% of 213
companies
in the Medical Diagnostics & Research industry
Industry Median: -2.4
vs STU:SAB: 8.70
Sonic Healthcare (STU:SAB) Return-on-Tangible-Asset Explanation
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.
Sonic Healthcare Return-on-Tangible-Asset Related Terms
Sonic Healthcare Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Sonic Healthcare'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.
STU:SAB vs TMO, DHR, IDXX: Return-on-Tangible-Asset Comparison
For the Diagnostics & Research subindustry, Sonic Healthcare'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.
Sonic Healthcare Return-on-Tangible-Asset vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Sonic Healthcare's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Sonic Healthcare'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 8.20% mean?
Sonic Healthcare (STU:SAB) has a Return-on-Tangible-Asset of 8.20% 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 Sonic Healthcare and its competitors. This is 63% below median its historical median of 22.46. Over the past decade, Sonic Healthcare's Return-on-Tangible-Asset has ranged from 8.70 to 39.54. According to the industry distribution chart, Sonic Healthcare ranks #45 out of 213 companies in the Medical Diagnostics & Research industry, placing it in the top 21.1%.
Is Sonic Healthcare's Return-on-Tangible-Asset too high?
Sonic Healthcare's current Return-on-Tangible-Asset of 8.20% is 63% below median its 10-year median of 22.46. Over the past 10 years, this metric has ranged from a low of 8.70 to a high of 39.54. Based on the distribution chart, Sonic Healthcare ranks #45 out of 213 companies in the Medical Diagnostics & Research industry, which is in the top quartile — a strong position relative to peers. Overall, Sonic Healthcare has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sonic Healthcare's Return-on-Tangible-Asset compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Sonic Healthcare ranks #45 out of 213 companies for Return-on-Tangible-Asset. This places Sonic Healthcare in the top 21% of its industry — outperforming the majority of peers. Historically, Sonic Healthcare's own Return-on-Tangible-Asset has ranged from 8.70 to 39.54 over the past decade. 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 Diagnostics & Research company?
A good Return-on-Tangible-Asset depends on the Medical Diagnostics & Research industry context. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Sonic Healthcare and its competitors. Sonic Healthcare's current Return-on-Tangible-Asset is 8.20%, which is 63% below median its own 10-year median of 22.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonic Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Sonic Healthcare (STU:SAB) is currently considered Significantly Undervalued. The stock's GF Value™ is €19.92, compared to a current price of €12.76 — trading 36% below its estimated fair value. The current Return-on-Tangible-Asset is 8.20%, which is 63% below median its 10-year median of 22.46. Sonic Healthcare's overall GF Score™ is 71/100 with 5 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 Sonic Healthcare (STU:SAB), the current Return-on-Tangible-Asset is 8.20% 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 Sonic Healthcare (STU:SAB) Overvalued in 2026?
Based on GuruFocus' analysis, Sonic Healthcare stock appears to be undervalued.
The current stock price of €12.76 is trading 36% below its estimated GF Value™ of €19.92.
GuruFocus considers Sonic Healthcare to be Significantly Undervalued.
Key valuation signals for STU:SAB:
Return-on-Tangible-Asset: 8.20% (63% below median its 10-year median of 22.46)
GF Value™: €19.92 vs. price of €12.76 (36% below fair value)
No single metric tells the full story. See the STU:SAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonic Healthcare is a global pathology provider. It is the largest private operator in Australia, Germany, Switzerland and the UK, the second-largest in Belgium and New Zealand, and the third largest in the US. In addition to pathology, which contributes roughly 85% of group revenue, Sonic is the second-largest player in diagnostic imaging in Australia and the largest operator of medical centers in Australia. The company typically earns about 35% of group revenue in Australia and New Zealand, 25% in the US, and 40% in Europe.
71GF Score
Get the complete analysis for STU:SAB
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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