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Outset MedicalOM -8.51%64 ROE % is -69.16% as of Jun. 2026. GuruFocus rates OM with a GF Score™ of 64/100 and a GF Value™ of $4.18 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 799 Medical Devices & Instruments companies, Outset Medical ranks worse than 82.98% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Outset Medical's annualized net income for the quarter that ended in Jun. 2026 was $-71.9 Mil. Outset Medical's average Total Stockholders Equity over the quarter that ended in Jun. 2026 was $104.0 Mil. Therefore, Outset Medical's annualized ROE % for the quarter that ended in Jun. 2026 was -69.16%.
The historical rank and industry rank for Outset Medical's ROE % or its related term are showing as below:
OM'
s ROE % Range Over the Past 10 Years
Min: -170.97 Med: -93.69 Max: -37.55
Current: -53.03
During the past 8 years, Outset Medical's highest ROE % was -37.55%. The lowest was -170.97%. And the median was -93.69%.
OM's ROE % is ranked worse than 82.98% of 799
companies
in the Medical Devices & Instruments industry
Industry Median: 2.44
vs OM: -53.03
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.
Outset Medical ROE % Related Terms
Outset Medical ROE % Historical Data
* Premium members only.
The historical data trend for Outset Medical'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.
For the Medical Devices subindustry, Outset Medical'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.
Outset Medical ROE % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Outset Medical's ROE % distribution charts can be found below:
* The bar in red indicates where Outset Medical'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.
Outset Medical (OM) has a ROE % of -69.16% 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 Outset Medical and its competitors. According to the industry distribution chart, Outset Medical ranks #663 out of 799 companies in the Medical Devices & Instruments industry, placing it in the top 83%.
Is Outset Medical's ROE % too high?
Outset Medical's current ROE % is -69.16%. Based on the distribution chart, Outset Medical ranks #663 out of 799 companies in the Medical Devices & Instruments industry, which is in the bottom quartile relative to peers. Overall, Outset Medical has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Outset Medical's ROE % compare to SERA and LNSR?
According to the Medical Devices & Instruments industry distribution chart, Outset Medical ranks #663 out of 799 companies for ROE %. This places Outset Medical in the lower half of its industry. The industry median ROE % is 2.44. 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 2.44, 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. 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 Outset Medical and its competitors. For the Medical Devices & Instruments industry, the median ROE % is 2.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Outset Medical's current ROE % is -69.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Outset Medical stock overvalued right now?
Based on GuruFocus' analysis, Outset Medical (OM) is currently considered Modestly Overvalued. The stock's GF Value™ is $4.18, compared to a current price of $4.74 — trading 13.4% above its estimated fair value. The current ROE % is -69.16%. Outset Medical's overall GF Score™ is 64/100 with 3 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 Outset Medical (OM), the current ROE % is -69.16% 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 Outset Medical (OM) Overvalued in 2026?
Based on GuruFocus' analysis, Outset Medical stock appears to be overvalued.
The current stock price of $4.74 is trading 13.4% above its estimated GF Value™ of $4.18.
GuruFocus considers Outset Medical to be Modestly Overvalued.
Key valuation signals for OM:
ROE %: -69.16%
GF Value™: $4.18 vs. price of $4.74 (13.4% above fair value)
No single metric tells the full story. See the OM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Outset Medical Inc is a medical technology company pioneering a technology to reduce the cost and complexity of dialysis. The Company generates revenue from the sales of Tablo consoles and related consumables, including Tablo cartridges and accessories.
64GF Score
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