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VeradigmSTU:AL21 23 Return-on-Tangible-Equity is -18.96% as of Dec. 2022. GuruFocus rates STU:AL21 with a GF Score™ of 23/100. Among 577 Healthcare Providers & Services companies, Veradigm ranks worse than 173310.05% 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. Veradigm's annualized net income for the quarter that ended in Dec. 2022 was €-81.6 Mil. Veradigm's average shareholder tangible equity for the quarter that ended in Dec. 2022 was €430.6 Mil. Therefore, Veradigm's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2022 was -18.96%.
The historical rank and industry rank for Veradigm's Return-on-Tangible-Equity or its related term are showing as below:
STU:AL21's Return-on-Tangible-Equity is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 10.13 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
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.
Veradigm Return-on-Tangible-Equity Related Terms
Veradigm Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Veradigm'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.
STU:AL21 vs CTEV, EVH, PHR: Return-on-Tangible-Equity Comparison
For the Health Information Services subindustry, Veradigm'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.
Veradigm Return-on-Tangible-Equity vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Veradigm's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Veradigm'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 one times the annual (Dec. 2022) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -18.96% mean?
Veradigm (STU:AL21) has a Return-on-Tangible-Equity of -18.96% as of Dec. 2022. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Veradigm and its competitors. According to the industry distribution chart, Veradigm ranks #999999 out of 577 companies in the Healthcare Providers & Services industry.
Is Veradigm's Return-on-Tangible-Equity too high?
Veradigm's current Return-on-Tangible-Equity is -18.96%. Based on the distribution chart, Veradigm ranks #999999 out of 577 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Veradigm has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Veradigm's Return-on-Tangible-Equity compare to CTEV and EVH?
According to the Healthcare Providers & Services industry distribution chart, Veradigm ranks #999999 out of 577 companies for Return-on-Tangible-Equity. This places Veradigm in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.13. 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 10.13, based on 577 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 Veradigm and its competitors. For the Healthcare Providers & Services industry, the median Return-on-Tangible-Equity is 10.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Veradigm's current Return-on-Tangible-Equity is -18.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Veradigm stock overvalued right now?
Veradigm (STU:AL21) has a current Return-on-Tangible-Equity of -18.96%. The current Return-on-Tangible-Equity is -18.96%. Veradigm's overall GF Score™ is 23/100. 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 Veradigm (STU:AL21), the current Return-on-Tangible-Equity is -18.96% as of Dec. 2022. 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.
Veradigm Inc together with its subsidiaries, is a healthcare software-as-a-service (SaaS) technology, data and analytics company spanning the three pillars of healthcare: Provider, Payer and Life Science. Its Provider segment represents the source of revenue, followed by the Payer segment, with the Life Science segment contributing a comparatively smaller portion. Its portfolio addresses a range of healthcare industry needs, with the goal of transforming health insightfully, providing key healthcare stakeholders with data, insights and artificial intelligence (AI) enhanced solutions to help improve health outcomes and reduce costs.
23GF Score
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