NetcareSTU:NH7 +10.00%85 Return-on-Tangible-Equity is 20.91% as of Mar. 2026, which is 35% above its 10-year median of 15.52. GuruFocus rates STU:NH7 with a GF Score™ of 85/100 and a GF Value™ of €0.20. The stock has 6 warning signs investors should review. Among 579 Healthcare Providers & Services companies, Netcare ranks better than 68.91% 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. Netcare's annualized net income for the quarter that ended in Mar. 2026 was €92 Mil. Netcare's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €438 Mil. Therefore, Netcare's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 20.91%.
The historical rank and industry rank for Netcare's Return-on-Tangible-Equity or its related term are showing as below:
STU:NH7'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -7.33 Med: 15.52 Max: 63.72
Current: 21.06
During the past 13 years, Netcare's highest Return-on-Tangible-Equity was 63.72%. The lowest was -7.33%. And the median was 15.52%.
STU:NH7's Return-on-Tangible-Equity is ranked better than 68.91% of 579
companies
in the Healthcare Providers & Services industry
Industry Median: 10.21
vs STU:NH7: 21.06
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.
Netcare Return-on-Tangible-Equity Related Terms
Netcare Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Netcare'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:NH7 vs HCA, THC, DVA: Return-on-Tangible-Equity Comparison
For the Medical Care Facilities subindustry, Netcare'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.
Netcare Return-on-Tangible-Equity vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Netcare's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Netcare'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 20.91% mean?
Netcare (STU:NH7) has a Return-on-Tangible-Equity of 20.91% 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 Netcare and its competitors. This is 35% above median its historical median of 15.52. According to the industry distribution chart, Netcare ranks #180 out of 579 companies in the Healthcare Providers & Services industry, placing it in the top 31.1%.
Is Netcare's Return-on-Tangible-Equity too high?
Netcare's current Return-on-Tangible-Equity of 20.91% is 35% above median its 10-year median of 15.52. The Healthcare Providers & Services industry median Return-on-Tangible-Equity is 10.21. Netcare's value of 20.91% is 104.8% above this industry median. Based on the distribution chart, Netcare ranks #180 out of 579 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Netcare has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Netcare's Return-on-Tangible-Equity compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Netcare ranks #180 out of 579 companies for Return-on-Tangible-Equity. This puts Netcare in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.21. Netcare's value of 20.91% is 104.8% above this benchmark. While the company's 10-year median is 15.52 vs. the industry median of 10.21, Netcare 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 10.21, based on 579 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. Netcare's current Return-on-Tangible-Equity of 20.91% is 104.8% 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 Netcare and its competitors. For the Healthcare Providers & Services industry, the median Return-on-Tangible-Equity is 10.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netcare's current Return-on-Tangible-Equity is 20.91%, which is 35% above median its own 10-year median of 15.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Netcare stock overvalued right now?
Netcare (STU:NH7) has a current Return-on-Tangible-Equity of 20.91%. The stock's GF Value™ is €0.20, compared to a current price of €0.22 — trading 10% above its estimated fair value. The current Return-on-Tangible-Equity is 20.91%, which is 35% above median its 10-year median of 15.52 and 104.8% above the Healthcare Providers & Services industry median of 10.21. Netcare's overall GF Score™ is 85/100 with 6 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 Netcare (STU:NH7), the current Return-on-Tangible-Equity is 20.91% 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 Netcare (STU:NH7) Overvalued in 2026?
Based on GuruFocus' analysis, Netcare stock appears to be overvalued.
The current stock price of €0.22 is trading 10% above its estimated GF Value™ of €0.20.
Key valuation signals for STU:NH7:
Return-on-Tangible-Equity: 20.91% (35% above median its 10-year median of 15.52)
GF Value™: €0.20 vs. price of €0.22 (10% above fair value)
Industry Position: 104.8% above the Healthcare Providers & Services median (#180 of 579)
No single metric tells the full story. See the STU:NH7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Netcare Ltd operates a network of hospitals in South Africa. Its network also includes emergency, cancer care, diagnostic support, primary care, and renal care services as well as occupational health and wellness services. The firm operates in two segments: Hospital and emergency services and Primary Care. The Hospital and emergency services segment contributes to majority of the firm's revenue. Netcare's services include Netcare appointmed TM, Netcare Cancer Care, Netcare Family Connect Line, Netcare Occupational Health and Netcare Pharmacy.
85GF Score
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