Redhill BiopharmaSTU:2RH 18 ROE % is Negative Equity% as of Dec. 2025. GuruFocus rates STU:2RH with a GF Score™ of 18/100. The stock has 6 warning signs investors should review. Among 936 Drug Manufacturers companies, Redhill Biopharma ranks worse than 106837.5% on this metric.
The historical rank and industry rank for Redhill Biopharma's ROE % or its related term are showing as below:
STU:2RH's ROE % is not ranked *
in the Drug Manufacturers industry.
Industry Median: 5.865 * Ranked among companies with meaningful ROE % only.
Redhill Biopharma (STU:2RH) 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.
Redhill Biopharma ROE % Related Terms
Redhill Biopharma ROE % Historical Data
* Premium members only.
The historical data trend for Redhill Biopharma'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 Drug Manufacturers - Specialty & Generic subindustry, Redhill Biopharma'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.
Redhill Biopharma ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Redhill Biopharma's ROE % distribution charts can be found below:
* The bar in red indicates where Redhill Biopharma'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.
* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.
Redhill Biopharma (STU:2RH) has a ROE % of Negative Equity% 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 Redhill Biopharma and its competitors. According to the industry distribution chart, Redhill Biopharma ranks #999999 out of 936 companies in the Drug Manufacturers industry.
Is Redhill Biopharma's ROE % too high?
Redhill Biopharma's current ROE % is Negative Equity%. Based on the distribution chart, Redhill Biopharma ranks #999999 out of 936 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Redhill Biopharma has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Redhill Biopharma's ROE % compare to LVRLF and BUDZ?
According to the Drug Manufacturers industry distribution chart, Redhill Biopharma ranks #999999 out of 936 companies for ROE %. This places Redhill Biopharma in the lower half of its industry. The industry median ROE % is 5.87. 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 Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 5.87, based on 936 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 Redhill Biopharma and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redhill Biopharma's current ROE % is Negative Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redhill Biopharma stock overvalued right now?
Redhill Biopharma (STU:2RH) has a current ROE % of Negative Equity%. The current ROE % is Negative Equity%. Redhill Biopharma's overall GF Score™ is 18/100 with 6 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 Redhill Biopharma (STU:2RH), the current ROE % is Negative Equity% 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.
RedHill Biopharma Ltd is a specialty biopharmaceutical company mainly focused on the U.S. development and commercialization of drugs for GI diseases, infectious diseases, and oncology. The Company is mainly focused on the advancement of its development pipeline of clinical-stage therapeutic candidates and also commercializes its GI-related product, Talicia (omeprazole, amoxicillin, and rifabutin) in the U.S. Its therapeutic candidates include opaganib, RHB-204, RHB-104, RHB-102 (Bekinda), and RHB-107.
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