NetcareSTU:NH7 +50.00%85 ROE % is 16.82% as of Mar. 2026, which is 31% above its 10-year median of 12.86. GuruFocus rates STU:NH7 with a GF Score™ of 85/100 and a GF Value™ of €0.01. The stock has 5 warning signs investors should review. Among 628 Healthcare Providers & Services companies, Netcare ranks better than 80.41% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Netcare's annualized net income for the quarter that ended in Mar. 2026 was €92 Mil. Netcare's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €545 Mil. Therefore, Netcare's annualized ROE % for the quarter that ended in Mar. 2026 was 16.82%.
The historical rank and industry rank for Netcare's ROE % or its related term are showing as below:
STU:NH7'
s ROE % Range Over the Past 10 Years
Min: -4.99 Med: 12.86 Max: 51.22
Current: 17.06
During the past 13 years, Netcare's highest ROE % was 51.22%. The lowest was -4.99%. And the median was 12.86%.
STU:NH7's ROE % is ranked better than 80.41% of 628
companies
in the Healthcare Providers & Services industry
Industry Median: 5.72
vs STU:NH7: 17.06
Netcare (STU:NH7) 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 (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.
Netcare ROE % Related Terms
Netcare ROE % Historical Data
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The historical data trend for Netcare'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 Care Facilities subindustry, Netcare'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.
Netcare ROE % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Netcare's ROE % distribution charts can be found below:
* The bar in red indicates where Netcare'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Netcare (STU:NH7) has a ROE % of 16.82% 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 Netcare and its competitors. This is 31% above median its historical median of 12.86. According to the industry distribution chart, Netcare ranks #123 out of 628 companies in the Healthcare Providers & Services industry, placing it in the top 19.6%.
Is Netcare's ROE % too high?
Netcare's current ROE % of 16.82% is 31% above median its 10-year median of 12.86. The Healthcare Providers & Services industry median ROE % is 5.72. Netcare's value of 16.82% is 194.1% above this industry median. Based on the distribution chart, Netcare ranks #123 out of 628 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, Netcare has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Netcare's ROE % compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Netcare ranks #123 out of 628 companies for ROE %. This places Netcare in the top 20% of its industry — outperforming the majority of peers. The industry median ROE % is 5.72. Netcare's value of 16.82% is 194.1% above this benchmark. While the company's 10-year median is 12.86 vs. the industry median of 5.72, Netcare 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 Healthcare Providers & Services company?
The median ROE % among Healthcare Providers & Services companies is 5.72, based on 628 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. Netcare's current ROE % of 16.82% is 194.1% 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 Netcare and its competitors. For the Healthcare Providers & Services industry, the median ROE % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netcare's current ROE % is 16.82%, which is 31% above median its own 10-year median of 12.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Netcare stock overvalued right now?
Netcare (STU:NH7) has a current ROE % of 16.82%. The stock's GF Value™ is €0.01, compared to a current price of €0.30 — trading 2900% above its estimated fair value. The current ROE % is 16.82%, which is 31% above median its 10-year median of 12.86 and 194.1% above the Healthcare Providers & Services industry median of 5.72. Netcare's overall GF Score™ is 85/100 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 Netcare (STU:NH7), the current ROE % is 16.82% 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 Netcare (STU:NH7) Overvalued in 2026?
Based on GuruFocus' analysis, Netcare stock appears to be overvalued.
The current stock price of €0.30 is trading 2900% above its estimated GF Value™ of €0.01.
Key valuation signals for STU:NH7:
ROE %: 16.82% (31% above median its 10-year median of 12.86)
GF Value™: €0.01 vs. price of €0.30 (2900% above fair value)
Industry Position: 194.1% above the Healthcare Providers & Services median (#123 of 628)
No single metric tells the full story. See the STU:NH7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Netcare Ltd operates a network of hospitals in South Africa. Its network also includes emergency, cancer care, diagnostic support, primary care, and renal care services as well as occupational health and wellness services. The firm operates in two segments: Hospital and emergency services and Primary Care. The Hospital and emergency services segment contributes to majority of the firm's revenue. Netcare's services include Netcare appointmed TM, Netcare Cancer Care, Netcare Family Connect Line, Netcare Occupational Health and Netcare Pharmacy.
85GF Score
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