Aroa Biosurgery (ASX:ARX) ROE %: 12.31% (As of Mar. 2026)


ASX:ARX Aroa Biosurgery Ltd ASX:ARX
62 GF Score
Price A$0.59
GF Value A$0.80
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Aroa Biosurgery ROE %?

Aroa Biosurgery ASX:ARX +0.85% 62 ROE % is 12.31% as of Mar. 2026. GuruFocus rates ASX:ARX with a GF Score™ of 62/100 and a GF Value™ of A$0.80 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 799 Medical Devices & Instruments companies, Aroa Biosurgery ranks better than 57.82% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Aroa Biosurgery's annualized net income for the quarter that ended in Mar. 2026 was A$10.08 Mil. Aroa Biosurgery's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was A$81.90 Mil. Therefore, Aroa Biosurgery's annualized ROE % for the quarter that ended in Mar. 2026 was 12.31%.

The historical rank and industry rank for Aroa Biosurgery's ROE % or its related term are showing as below:

ASX:ARX' s ROE % Range Over the Past 10 Years
Min: -30.26   Med: -7.32   Max: 4.71
Current: 4.71

During the past 7 years, Aroa Biosurgery's highest ROE % was 4.71%. The lowest was -30.26%. And the median was -7.32%.

ASX:ARX's ROE % is ranked better than
57.82% of 799 companies
in the Medical Devices & Instruments industry
Industry Median: 2.42 vs ASX:ARX: 4.71

Aroa Biosurgery  (ASX:ARX) 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:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=10.082/81.896
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(10.082 / 94.976)*(94.976 / 97.9525)*(97.9525 / 81.896)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.62 %*0.9696*1.1961
=ROA %*Equity Multiplier
=10.3 %*1.1961
=12.31 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=10.082/81.896
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (10.082 / 10.608) * (10.608 / 6.648) * (6.648 / 94.976) * (94.976 / 97.9525) * (97.9525 / 81.896)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9504 * 1.5957 * 7 % * 0.9696 * 1.1961
=12.31 %

Note: The net income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) 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.


Aroa Biosurgery ROE % Related Terms


Aroa Biosurgery ROE % Historical Data

* Premium members only.

The historical data trend for Aroa Biosurgery's ROE % 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.

Aroa Biosurgery ROE % Chart

Aroa Biosurgery Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
Get a 7-Day Free Trial -10.60 -0.39 -10.69 -4.04 4.66

Aroa Biosurgery Semi-Annual Data
Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -8.78 -7.05 -1.04 -2.75 12.31

ASX:ARX vs ABT, SYK, MDT: ROE % Comparison

For the Medical Devices subindustry, Aroa Biosurgery'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.


Aroa Biosurgery ROE % vs Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Aroa Biosurgery's ROE % distribution charts can be found below:

* The bar in red indicates where Aroa Biosurgery's ROE % falls into.


ASX:ARX
62GF Score
Aroa Biosurgery Ltd ASX:ARX
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Aroa Biosurgery ROE % Calculation

Aroa Biosurgery's annualized ROE % for the fiscal year that ended in Mar. 2026 is calculated as

ROE %=Net Income (A: Mar. 2026 )/( (Total Stockholders Equity (A: Mar. 2025 )+Total Stockholders Equity (A: Mar. 2026 ))/ count )
=3.901/( (84.592+82.838)/ 2 )
=3.901/83.715
=4.66 %

Aroa Biosurgery's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=10.082/( (80.954+82.838)/ 2 )
=10.082/81.896
=12.31 %

* 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 (Mar. 2026) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 12.31% mean?
Aroa Biosurgery (ASX:ARX) has a ROE % of 12.31% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Aroa Biosurgery and its competitors. According to the industry distribution chart, Aroa Biosurgery ranks #337 out of 799 companies in the Medical Devices & Instruments industry, placing it in the top 42.2%.
Is Aroa Biosurgery's ROE % too high?
Aroa Biosurgery's current ROE % is 12.31%. The Medical Devices & Instruments industry median ROE % is 2.42. Aroa Biosurgery's value of 12.31% is 408.7% above this industry median. Based on the distribution chart, Aroa Biosurgery ranks #337 out of 799 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, Aroa Biosurgery has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aroa Biosurgery's ROE % compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Aroa Biosurgery ranks #337 out of 799 companies for ROE %. This puts Aroa Biosurgery in the upper half of its industry. The industry median ROE % is 2.42. Aroa Biosurgery's value of 12.31% is 408.7% above this benchmark. 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 Devices & Instruments company?
The median ROE % among Medical Devices & Instruments companies is 2.42, based on 799 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aroa Biosurgery's current ROE % of 12.31% is 408.7% 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 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 Aroa Biosurgery and its competitors. For the Medical Devices & Instruments industry, the median ROE % is 2.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aroa Biosurgery's current ROE % is 12.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aroa Biosurgery stock overvalued right now?
Based on GuruFocus' analysis, Aroa Biosurgery (ASX:ARX) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.80, compared to a current price of A$0.59 — trading 26.3% below its estimated fair value. The current ROE % is 12.31% and 408.7% above the Medical Devices & Instruments industry median of 2.42. Aroa Biosurgery's overall GF Score™ is 62/100 with 2 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 Aroa Biosurgery (ASX:ARX), the current ROE % is 12.31% 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 Aroa Biosurgery (ASX:ARX) Overvalued in 2026?

Based on GuruFocus' analysis, Aroa Biosurgery stock appears to be undervalued. The current stock price of A$0.59 is trading 26.3% below its estimated GF Value™ of A$0.80. GuruFocus considers Aroa Biosurgery to be Modestly Undervalued.

Key valuation signals for ASX:ARX:

  • ROE %: 12.31%
  • GF Value™: A$0.80 vs. price of A$0.59 (26.3% below fair value)
  • GF Score™: 62/100 with 2 warning signs
  • Industry Position: 408.7% above the Medical Devices & Instruments median (#337 of 799)

No single metric tells the full story. See the ASX:ARX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Aroa Biosurgery Business Description

Other Exchanges AROAF:USA
Address 64 Richard Pearse Drive, Mangere, Airport Oaks, Auckland, NZL, 2022
Aroa Biosurgery Ltd is a soft tissue regeneration company that develops, manufactures, and sells medical devices for wound and soft tissue repair using its proprietary extracellular matrix (ECM) technology. It is focused on improving the rate and quality of healing in complex wounds and soft tissue reconstruction. The company is in the business of developing, manufacturing, and selling soft tissue repair products. The company's principal market is the United States, where it has five key products for sale targeting chronic wounds, hernia, plastics, reconstructive surgery, and trauma/limb salvage/tumor surgery.
62GF Score

Get the complete analysis for ASX:ARX

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$0.59
Price
A$0.80
GF Value