M3MTHRY -0.72%86 Return-on-Tangible-Equity is 15.90% as of Mar. 2026, which is 52% below its 10-year median of 33.13. GuruFocus rates MTHRY with a GF Score™ of 86/100 and a GF Value™ of $7.56 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 581 Healthcare Providers & Services companies, M3 ranks better than 75.73% 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. M3's annualized net income for the quarter that ended in Mar. 2026 was $188 Mil. M3's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,181 Mil. Therefore, M3's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.90%.
The historical rank and industry rank for M3's Return-on-Tangible-Equity or its related term are showing as below:
MTHRY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 21.49 Med: 33.13 Max: 65.84
Current: 28.63
During the past 13 years, M3's highest Return-on-Tangible-Equity was 65.84%. The lowest was 21.49%. And the median was 33.13%.
MTHRY's Return-on-Tangible-Equity is ranked better than 75.73% of 581
companies
in the Healthcare Providers & Services industry
Industry Median: 9.93
vs MTHRY: 28.63
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.
M3 Return-on-Tangible-Equity Related Terms
M3 Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for M3'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.
MTHRY vs VEEV, BTSG, TEM: Return-on-Tangible-Equity Comparison
For the Health Information Services subindustry, M3'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.
M3 Return-on-Tangible-Equity vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, M3's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where M3'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 15.90% mean?
M3 (MTHRY) has a Return-on-Tangible-Equity of 15.90% 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 M3 and its competitors. This is 52% below median its historical median of 33.13. Over the past decade, M3's Return-on-Tangible-Equity has ranged from 21.49 to 65.84. According to the industry distribution chart, M3 ranks #141 out of 581 companies in the Healthcare Providers & Services industry, placing it in the top 24.3%.
Is M3's Return-on-Tangible-Equity too high?
M3's current Return-on-Tangible-Equity of 15.90% is 52% below median its 10-year median of 33.13. Over the past 10 years, this metric has ranged from a low of 21.49 to a high of 65.84. The Healthcare Providers & Services industry median Return-on-Tangible-Equity is 9.93. M3's value of 15.90% is 60.1% above this industry median. Based on the distribution chart, M3 ranks #141 out of 581 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, M3 has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does M3's Return-on-Tangible-Equity compare to VEEV and BTSG?
According to the Healthcare Providers & Services industry distribution chart, M3 ranks #141 out of 581 companies for Return-on-Tangible-Equity. This places M3 in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.93. M3's value of 15.90% is 60.1% above this benchmark. Historically, M3's own Return-on-Tangible-Equity has ranged from 21.49 to 65.84 over the past decade. While the company's 10-year median is 33.13 vs. the industry median of 9.93, M3 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-Equity for a Healthcare Providers & Services company?
The median Return-on-Tangible-Equity among Healthcare Providers & Services companies is 9.93, based on 581 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. M3's current Return-on-Tangible-Equity of 15.90% is 60.1% 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 M3 and its competitors. For the Healthcare Providers & Services industry, the median Return-on-Tangible-Equity is 9.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. M3's current Return-on-Tangible-Equity is 15.90%, which is 52% below median its own 10-year median of 33.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is M3 stock overvalued right now?
Based on GuruFocus' analysis, M3 (MTHRY) is currently considered Modestly Undervalued. The stock's GF Value™ is $7.56, compared to a current price of $5.52 — trading 27% below its estimated fair value. The current Return-on-Tangible-Equity is 15.90%, which is 52% below median its 10-year median of 33.13 and 60.1% above the Healthcare Providers & Services industry median of 9.93. M3's overall GF Score™ is 86/100 with 3 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 M3 (MTHRY), the current Return-on-Tangible-Equity is 15.90% 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 M3 (MTHRY) Overvalued in 2026?
Based on GuruFocus' analysis, M3 stock appears to be undervalued.
The current stock price of $5.52 is trading 27% below its estimated GF Value™ of $7.56.
GuruFocus considers M3 to be Modestly Undervalued.
Key valuation signals for MTHRY:
Return-on-Tangible-Equity: 15.90% (52% below median its 10-year median of 33.13)
GF Value™: $7.56 vs. price of $5.52 (27% below fair value)
Industry Position: 60.1% above the Healthcare Providers & Services median (#141 of 581)
No single metric tells the full story. See the MTHRY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
M3 Inc is a Japan-based company engaged in providing medical-related services through internet-based platforms and real-world operations. The company operates six reportable segments: Medical Platform, Evidence Solutions, Career Solutions, Site Solutions, Patient Solutions, and Overseas. Its businesses include online marketing for medical professionals, clinical trial support, human resources services for medical professionals, operational support for medical institutions, and patient support services. The Overseas segment offers similar services internationally, including in the United States, the United Kingdom, China, South Korea, India, France, Germany, and Spain.
86GF Score
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