Castle BiosciencesCSTL +3.69%73 Return-on-Tangible-Equity is -15.80% as of Mar. 2026. GuruFocus rates CSTL with a GF Score™ of 73/100 and a GF Value™ of $29.18 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 193 Medical Diagnostics & Research companies, Castle Biosciences ranks worse than 55.96% 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. Castle Biosciences's annualized net income for the quarter that ended in Mar. 2026 was $-58.1 Mil. Castle Biosciences's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $367.7 Mil. Therefore, Castle Biosciences's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -15.80%.
The historical rank and industry rank for Castle Biosciences's Return-on-Tangible-Equity or its related term are showing as below:
CSTL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -22.54 Med: -6.7 Max: 14.06
Current: -3.54
During the past 9 years, Castle Biosciences's highest Return-on-Tangible-Equity was 14.06%. The lowest was -22.54%. And the median was -6.70%.
CSTL's Return-on-Tangible-Equity is ranked worse than 55.96% of 193
companies
in the Medical Diagnostics & Research industry
Industry Median: 0.07
vs CSTL: -3.54
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.
Castle Biosciences Return-on-Tangible-Equity Related Terms
Castle Biosciences Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Castle Biosciences'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.
CSTL vs FLGT, MYGN, OPK: Return-on-Tangible-Equity Comparison
For the Diagnostics & Research subindustry, Castle Biosciences'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.
Castle Biosciences Return-on-Tangible-Equity vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Castle Biosciences's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Castle Biosciences'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 four times the quarterly (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 -15.80% mean?
Castle Biosciences (CSTL) has a Return-on-Tangible-Equity of -15.80% 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 Castle Biosciences and its competitors. According to the industry distribution chart, Castle Biosciences ranks #108 out of 193 companies in the Medical Diagnostics & Research industry, placing it in the top 56%.
Is Castle Biosciences' Return-on-Tangible-Equity too high?
Castle Biosciences' current Return-on-Tangible-Equity is -15.80%. Based on the distribution chart, Castle Biosciences ranks #108 out of 193 companies in the Medical Diagnostics & Research industry, which is below the industry midpoint. Overall, Castle Biosciences has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Castle Biosciences' Return-on-Tangible-Equity compare to FLGT and MYGN?
According to the Medical Diagnostics & Research industry distribution chart, Castle Biosciences ranks #108 out of 193 companies for Return-on-Tangible-Equity. This places Castle Biosciences in the lower half of its industry. The industry median Return-on-Tangible-Equity is 0.07. 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 Diagnostics & Research company?
The median Return-on-Tangible-Equity among Medical Diagnostics & Research companies is 0.07, based on 193 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. 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 Castle Biosciences and its competitors. For the Medical Diagnostics & Research industry, the median Return-on-Tangible-Equity is 0.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Castle Biosciences's current Return-on-Tangible-Equity is -15.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Castle Biosciences stock overvalued right now?
Based on GuruFocus' analysis, Castle Biosciences (CSTL) is currently considered Modestly Undervalued. The stock's GF Value™ is $29.18, compared to a current price of $24.72 — trading 15.3% below its estimated fair value. The current Return-on-Tangible-Equity is -15.80%. Castle Biosciences' overall GF Score™ is 73/100 with 4 warning signs 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 Castle Biosciences (CSTL), the current Return-on-Tangible-Equity is -15.80% 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 Castle Biosciences (CSTL) Overvalued in 2026?
Based on GuruFocus' analysis, Castle Biosciences stock appears to be undervalued.
The current stock price of $24.72 is trading 15.3% below its estimated GF Value™ of $29.18.
GuruFocus considers Castle Biosciences to be Modestly Undervalued.
Key valuation signals for CSTL:
Return-on-Tangible-Equity: -15.80%
GF Value™: $29.18 vs. price of $24.72 (15.3% below fair value)
No single metric tells the full story. See the CSTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Castle Biosciences Inc is a molecular diagnostics company. The group provides test solutions for the diagnosis and treatment of dermatologic cancers, Barrett's esophagus (BE), and uveal melanoma. The product portfolio of the company includes DecisionDx-Melanoma, a risk stratification gene expression profile (GEP) test; DecisionDx-SCC, a risk stratification test for cutaneous squamous cell carcinoma; MyPath Melanoma, a diagnostic GEP test for use in patients with difficult-to-diagnose melanocytic lesions; and TissueCypher, a test to predict future development of progression of high-grade dysplasia and/or esophageal cancer. The company derives revenues through the delivery of test reports for its molecular diagnostic tests.
73GF Score
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