Aroa BiosurgeryAROAF +35.24%39 Return-on-Tangible-Equity is 15.86% as of Mar. 2026. GuruFocus rates AROAF with a GF Score™ of 39/100 and a GF Value™ of $0.71 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 759 Medical Devices & Instruments companies, Aroa Biosurgery ranks better than 54.28% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Aroa Biosurgery's annualized net income for the quarter that ended in Mar. 2026 was $7.08 Mil. Aroa Biosurgery's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $44.62 Mil. Therefore, Aroa Biosurgery's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.86%.
The historical rank and industry rank for Aroa Biosurgery's Return-on-Tangible-Equity or its related term are showing as below:
AROAF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -43.34 Med: -9.14 Max: 5.9
Current: 5.9
During the past 7 years, Aroa Biosurgery's highest Return-on-Tangible-Equity was 5.90%. The lowest was -43.34%. And the median was -9.14%.
AROAF's Return-on-Tangible-Equity is ranked better than 54.28% of 759
companies
in the Medical Devices & Instruments industry
Industry Median: 4.09
vs AROAF: 5.90
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
Aroa Biosurgery Return-on-Tangible-Equity Related Terms
Aroa Biosurgery Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Aroa Biosurgery's Return-on-Tangible-Equity 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.
AROAF vs ABT, SYK, MDT: Return-on-Tangible-Equity Comparison
For the Medical Devices subindustry, Aroa Biosurgery's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Aroa Biosurgery Return-on-Tangible-Equity vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Aroa Biosurgery's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Aroa Biosurgery's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.86% mean?
Aroa Biosurgery (AROAF) has a Return-on-Tangible-Equity of 15.86% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Aroa Biosurgery and its competitors. According to the industry distribution chart, Aroa Biosurgery ranks #347 out of 759 companies in the Medical Devices & Instruments industry, placing it in the top 45.7%.
Is Aroa Biosurgery's Return-on-Tangible-Equity too high?
Aroa Biosurgery's current Return-on-Tangible-Equity is 15.86%. The Medical Devices & Instruments industry median Return-on-Tangible-Equity is 4.09. Aroa Biosurgery's value of 15.86% is 287.8% above this industry median. Based on the distribution chart, Aroa Biosurgery ranks #347 out of 759 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, Aroa Biosurgery has a GF Score™ of 39/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aroa Biosurgery's Return-on-Tangible-Equity compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Aroa Biosurgery ranks #347 out of 759 companies for Return-on-Tangible-Equity. This puts Aroa Biosurgery in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.09. Aroa Biosurgery's value of 15.86% is 287.8% 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 Return-on-Tangible-Equity for a Medical Devices & Instruments company?
The median Return-on-Tangible-Equity among Medical Devices & Instruments companies is 4.09, based on 759 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aroa Biosurgery's current Return-on-Tangible-Equity of 15.86% is 287.8% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Aroa Biosurgery and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Equity is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aroa Biosurgery's current Return-on-Tangible-Equity is 15.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aroa Biosurgery stock overvalued right now?
Based on GuruFocus' analysis, Aroa Biosurgery (AROAF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.71, compared to a current price of $0.52 — trading 26.8% below its estimated fair value. The current Return-on-Tangible-Equity is 15.86% and 287.8% above the Medical Devices & Instruments industry median of 4.09. Aroa Biosurgery's overall GF Score™ is 39/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Aroa Biosurgery (AROAF), the current Return-on-Tangible-Equity is 15.86% 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.
Is Aroa Biosurgery (AROAF) Overvalued in 2026?
Based on GuruFocus' analysis, Aroa Biosurgery stock appears to be undervalued.
The current stock price of $0.52 is trading 26.8% below its estimated GF Value™ of $0.71.
GuruFocus considers Aroa Biosurgery to be Modestly Undervalued.
Key valuation signals for AROAF:
Return-on-Tangible-Equity: 15.86%
GF Value™: $0.71 vs. price of $0.52 (26.8% below fair value)
Industry Position: 287.8% above the Medical Devices & Instruments median (#347 of 759)
No single metric tells the full story. See the AROAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aroa Biosurgery Ltd is a soft tissue regeneration company that develops, manufactures, and sells medical devices for wound and soft tissue repair using its proprietary extracellular matrix (ECM) technology. It is focused on improving the rate and quality of healing in complex wounds and soft tissue reconstruction. The company is in the business of developing, manufacturing, and selling soft tissue repair products. The company's principal market is the United States, where it has five key products for sale targeting chronic wounds, hernia, plastics, reconstructive surgery, and trauma/limb salvage/tumor surgery.
39GF Score
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