Profound MedicalPROF -1.77%73 Return-on-Tangible-Equity is -44.93% as of Mar. 2026. GuruFocus rates PROF with a GF Score™ of 73/100 and a GF Value™ of $14.28 (Possible Value Trap). The stock has 1 warning sign investors should review. Among 759 Medical Devices & Instruments companies, Profound Medical ranks worse than 84.98% 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. Profound Medical's annualized net income for the quarter that ended in Mar. 2026 was $-28.21 Mil. Profound Medical's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $62.80 Mil. Therefore, Profound Medical's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -44.93%.
The historical rank and industry rank for Profound Medical's Return-on-Tangible-Equity or its related term are showing as below:
PROF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -189.8 Med: -67.39 Max: -36.26
Current: -77.87
During the past 12 years, Profound Medical's highest Return-on-Tangible-Equity was -36.26%. The lowest was -189.80%. And the median was -67.39%.
PROF's Return-on-Tangible-Equity is ranked worse than 84.98% of 759
companies
in the Medical Devices & Instruments industry
Industry Median: 4.07
vs PROF: -77.87
Profound Medical (NAS:PROF) Return-on-Tangible-Equity Explanation
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.
Profound Medical Return-on-Tangible-Equity Related Terms
Profound Medical Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Profound Medical'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.
PROF vs ABT, SYK, MDT: Return-on-Tangible-Equity Comparison
For the Medical Devices subindustry, Profound Medical'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.
Profound Medical Return-on-Tangible-Equity vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Profound Medical's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Profound Medical'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 -44.93% mean?
Profound Medical (PROF) has a Return-on-Tangible-Equity of -44.93% 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 Profound Medical and its competitors. According to the industry distribution chart, Profound Medical ranks #645 out of 759 companies in the Medical Devices & Instruments industry, placing it in the top 85%.
Is Profound Medical's Return-on-Tangible-Equity too high?
Profound Medical's current Return-on-Tangible-Equity is -44.93%. Based on the distribution chart, Profound Medical ranks #645 out of 759 companies in the Medical Devices & Instruments industry, which is in the bottom quartile relative to peers. Overall, Profound Medical has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Profound Medical's Return-on-Tangible-Equity compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Profound Medical ranks #645 out of 759 companies for Return-on-Tangible-Equity. This places Profound Medical in the lower half of its industry. The industry median Return-on-Tangible-Equity is 4.07. 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 Devices & Instruments company?
The median Return-on-Tangible-Equity among Medical Devices & Instruments companies is 4.07, 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. 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 Profound Medical and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Equity is 4.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Profound Medical's current Return-on-Tangible-Equity is -44.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Profound Medical stock overvalued right now?
Based on GuruFocus' analysis, Profound Medical (PROF) is currently considered Possible Value Trap. The stock's GF Value™ is $14.28, compared to a current price of $7.21 — trading 49.5% below its estimated fair value. The current Return-on-Tangible-Equity is -44.93%. Profound Medical's overall GF Score™ is 73/100 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 Profound Medical (PROF), the current Return-on-Tangible-Equity is -44.93% 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 Profound Medical (PROF) Overvalued in 2026?
Based on GuruFocus' analysis, Profound Medical stock appears to be undervalued.
The current stock price of $7.21 is trading 49.5% below its estimated GF Value™ of $14.28.
GuruFocus considers Profound Medical to be Possible Value Trap.
Key valuation signals for PROF:
Return-on-Tangible-Equity: -44.93%
GF Value™: $14.28 vs. price of $7.21 (49.5% below fair value)
No single metric tells the full story. See the PROF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Profound Medical Corp is a commercial-stage medical device company focused on the development and marketing of AI-powered, MRI-guided, incision-free therapies for the ablation of diseased tissue. The company's flagship product, the TULSA-PRO system, combines real-time MRI, robotically-driven transurethral sweeping action/thermal ultrasound and closed-loop temperature feedback control to ablate whole gland or physician defined region of malignant or benign prostate tissue. Its platform technologies combine imaging, robotic control, and ultrasound-based thermal ablation for the treatment of prostate conditions. The company generates revenue through the sale of capital equipment and recurring sales of single-use devices and related services used in patient treatments.
73GF Score
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