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Australian Clinical LabsASX:ACL -0.83%56 ROE % is 6.92% as of Dec. 2025, which is 63% below its 10-year median of 18.59. GuruFocus rates ASX:ACL with a GF Score™ of 56/100 and a GF Value™ of A$3.06 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 199 Medical Diagnostics & Research companies, Australian Clinical Labs ranks better than 84.42% on this metric.
Australian Clinical Labs (ASX:ACL) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Diagnostics & Research subindustry, Australian Clinical Labs's ROE %, along with its competitors' market caps and ROE % 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.
Australian Clinical Labs ROE % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Australian Clinical Labs's ROE % distribution charts can be found below:
* The bar in red indicates where Australian Clinical Labs's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Australian Clinical Labs (ASX:ACL) has a ROE % of 6.92% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Australian Clinical Labs and its competitors. This is 63% below median its historical median of 18.59. Over the past decade, Australian Clinical Labs' ROE % has ranged from 13.68 to 113.41. According to the industry distribution chart, Australian Clinical Labs ranks #31 out of 199 companies in the Medical Diagnostics & Research industry, placing it in the top 15.6%.
Is Australian Clinical Labs' ROE % too high?
Australian Clinical Labs' current ROE % of 6.92% is 63% below median its 10-year median of 18.59. Over the past 10 years, this metric has ranged from a low of 13.68 to a high of 113.41. Based on the distribution chart, Australian Clinical Labs ranks #31 out of 199 companies in the Medical Diagnostics & Research industry, which is in the top quartile — a strong position relative to peers. Overall, Australian Clinical Labs has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Australian Clinical Labs' ROE % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Australian Clinical Labs ranks #31 out of 199 companies for ROE %. This places Australian Clinical Labs in the top 16% of its industry — outperforming the majority of peers. Historically, Australian Clinical Labs' own ROE % has ranged from 13.68 to 113.41 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Medical Diagnostics & Research company?
A good ROE % depends on the Medical Diagnostics & Research industry context. However, ROE % 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Australian Clinical Labs and its competitors. Australian Clinical Labs's current ROE % is 6.92%, which is 63% below median its own 10-year median of 18.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Clinical Labs stock overvalued right now?
Based on GuruFocus' analysis, Australian Clinical Labs (ASX:ACL) is currently considered Modestly Undervalued. The stock's GF Value™ is A$3.06, compared to a current price of A$2.38 — trading 22.2% below its estimated fair value. The current ROE % is 6.92%, which is 63% below median its 10-year median of 18.59. Australian Clinical Labs' overall GF Score™ is 56/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Australian Clinical Labs (ASX:ACL), the current ROE % is 6.92% as of Dec. 2025. 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 Australian Clinical Labs (ASX:ACL) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Clinical Labs stock appears to be undervalued.
The current stock price of A$2.38 is trading 22.2% below its estimated GF Value™ of A$3.06.
GuruFocus considers Australian Clinical Labs to be Modestly Undervalued.
Key valuation signals for ASX:ACL:
ROE %: 6.92% (63% below median its 10-year median of 18.59)
GF Value™: A$3.06 vs. price of A$2.38 (22.2% below fair value)
No single metric tells the full story. See the ASX:ACL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Clinical Labs is Australia's third-largest private pathology provider. ACL earns almost its entire group revenue from pathology services in Australia, which are mostly earned via the publicly funded health Medicare system. ACL is well established in the states of Western Australia, South Australia, Victoria, and the Northern Territory.
56GF Score
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