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Tactile Systems TechnologyFRA:3L3 -3.50%79 ROE % is 14.12% as of Jun. 2026, which is 72% above its 10-year median of 8.22. GuruFocus rates FRA:3L3 with a GF Score™ of 79/100 and a GF Value™ of €15.73 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 799 Medical Devices & Instruments companies, Tactile Systems Technology ranks better than 78.6% on this metric.
Tactile Systems Technology (FRA:3L3) 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 four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
* 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 Medical Devices subindustry, Tactile Systems Technology'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.
Tactile Systems Technology ROE % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Tactile Systems Technology's ROE % distribution charts can be found below:
* The bar in red indicates where Tactile Systems Technology'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 four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Tactile Systems Technology (FRA:3L3) has a ROE % of 14.12% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Tactile Systems Technology and its competitors. This is 72% above median its historical median of 8.22. According to the industry distribution chart, Tactile Systems Technology ranks #171 out of 799 companies in the Medical Devices & Instruments industry, placing it in the top 21.4%.
Is Tactile Systems Technology's ROE % too high?
Tactile Systems Technology's current ROE % of 14.12% is 72% above median its 10-year median of 8.22. The Medical Devices & Instruments industry median ROE % is 2.75. Tactile Systems Technology's value of 14.12% is 413.5% above this industry median. Based on the distribution chart, Tactile Systems Technology ranks #171 out of 799 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Tactile Systems Technology has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tactile Systems Technology's ROE % compare to CBLL and CERS?
According to the Medical Devices & Instruments industry distribution chart, Tactile Systems Technology ranks #171 out of 799 companies for ROE %. This places Tactile Systems Technology in the top 21% of its industry — outperforming the majority of peers. The industry median ROE % is 2.75. Tactile Systems Technology's value of 14.12% is 413.5% above this benchmark. While the company's 10-year median is 8.22 vs. the industry median of 2.75, Tactile Systems Technology 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 ROE % for a Medical Devices & Instruments company?
The median ROE % among Medical Devices & Instruments companies is 2.75, 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. Tactile Systems Technology's current ROE % of 14.12% is 413.5% 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 Tactile Systems Technology and its competitors. For the Medical Devices & Instruments industry, the median ROE % is 2.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tactile Systems Technology's current ROE % is 14.12%, which is 72% above median its own 10-year median of 8.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tactile Systems Technology stock overvalued right now?
Based on GuruFocus' analysis, Tactile Systems Technology (FRA:3L3) is currently considered Modestly Overvalued. The stock's GF Value™ is €15.73, compared to a current price of €20.38 — trading 29.6% above its estimated fair value. The current ROE % is 14.12%, which is 72% above median its 10-year median of 8.22 and 413.5% above the Medical Devices & Instruments industry median of 2.75. Tactile Systems Technology's overall GF Score™ is 79/100 with 1 warning sign 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 Tactile Systems Technology (FRA:3L3), the current ROE % is 14.12% as of Jun. 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 Tactile Systems Technology (FRA:3L3) Overvalued in 2026?
Based on GuruFocus' analysis, Tactile Systems Technology stock appears to be overvalued.
The current stock price of €20.38 is trading 29.6% above its estimated GF Value™ of €15.73.
GuruFocus considers Tactile Systems Technology to be Modestly Overvalued.
Key valuation signals for FRA:3L3:
ROE %: 14.12% (72% above median its 10-year median of 8.22)
GF Value™: €15.73 vs. price of €20.38 (29.6% above fair value)
Industry Position: 413.5% above the Medical Devices & Instruments median (#171 of 799)
No single metric tells the full story. See the FRA:3L3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tactile Systems Technology Inc is a medical technology company. The company is engaged in developing and providing medical devices for the treatment of chronic diseases. The firm's proprietary platform flexitouch system, provides a home-based solution for lymphedema patients. The entire system is another home solution for patients with chronic swelling and actitouch system for chronic venous insufficiency patients that may be worn throughout the day.
79GF Score
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