Sonic HealthcareSTU:SAB +4.08%68 ROE % is 6.23% as of Dec. 2025, which is 46% below its 10-year median of 11.44. GuruFocus rates STU:SAB with a GF Score™ of 68/100 and a GF Value™ of €20.03 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 203 Medical Diagnostics & Research companies, Sonic Healthcare ranks better than 68.97% on this metric.
The historical rank and industry rank for Sonic Healthcare's ROE % or its related term are showing as below:
STU:SAB'
s ROE % Range Over the Past 10 Years
Min: 6.32 Med: 11.44 Max: 21.99
Current: 6.45
During the past 13 years, Sonic Healthcare's highest ROE % was 21.99%. The lowest was 6.32%. And the median was 11.44%.
STU:SAB's ROE % is ranked better than 68.97% of 203
companies
in the Medical Diagnostics & Research industry
Industry Median: -1.22
vs STU:SAB: 6.45
Sonic Healthcare (STU:SAB) 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.
Sonic Healthcare ROE % Related Terms
Sonic Healthcare ROE % Historical Data
* Premium members only.
The historical data trend for Sonic Healthcare'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 Diagnostics & Research subindustry, Sonic Healthcare'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.
Sonic Healthcare ROE % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Sonic Healthcare's ROE % distribution charts can be found below:
* The bar in red indicates where Sonic Healthcare'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.
Sonic Healthcare (STU:SAB) has a ROE % of 6.23% 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 Sonic Healthcare and its competitors. This is 46% below median its historical median of 11.44. Over the past decade, Sonic Healthcare's ROE % has ranged from 6.32 to 21.99. According to the industry distribution chart, Sonic Healthcare ranks #63 out of 203 companies in the Medical Diagnostics & Research industry, placing it in the top 31%.
Is Sonic Healthcare's ROE % too high?
Sonic Healthcare's current ROE % of 6.23% is 46% below median its 10-year median of 11.44. Over the past 10 years, this metric has ranged from a low of 6.32 to a high of 21.99. Based on the distribution chart, Sonic Healthcare ranks #63 out of 203 companies in the Medical Diagnostics & Research industry, which is above the industry midpoint. Overall, Sonic Healthcare has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sonic Healthcare's ROE % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Sonic Healthcare ranks #63 out of 203 companies for ROE %. This puts Sonic Healthcare in the upper half of its industry. Historically, Sonic Healthcare's own ROE % has ranged from 6.32 to 21.99 over the past decade. 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 Diagnostics & Research company?
A good ROE % depends on the Medical Diagnostics & Research industry context. 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 Sonic Healthcare and its competitors. Sonic Healthcare's current ROE % is 6.23%, which is 46% below median its own 10-year median of 11.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonic Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Sonic Healthcare (STU:SAB) is currently considered Significantly Undervalued. The stock's GF Value™ is €20.03, compared to a current price of €12.49 — trading 37.7% below its estimated fair value. The current ROE % is 6.23%, which is 46% below median its 10-year median of 11.44. Sonic Healthcare's overall GF Score™ is 68/100 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 Sonic Healthcare (STU:SAB), the current ROE % is 6.23% 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.
Is Sonic Healthcare (STU:SAB) Overvalued in 2026?
Based on GuruFocus' analysis, Sonic Healthcare stock appears to be undervalued.
The current stock price of €12.49 is trading 37.7% below its estimated GF Value™ of €20.03.
GuruFocus considers Sonic Healthcare to be Significantly Undervalued.
Key valuation signals for STU:SAB:
ROE %: 6.23% (46% below median its 10-year median of 11.44)
GF Value™: €20.03 vs. price of €12.49 (37.7% below fair value)
No single metric tells the full story. See the STU:SAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonic Healthcare is a global pathology provider. It is the largest private operator in Australia, Germany, Switzerland and the UK, the second-largest in Belgium and New Zealand, and the third largest in the US. In addition to pathology, which contributes roughly 85% of group revenue, Sonic is the second-largest player in diagnostic imaging in Australia and the largest operator of medical centers in Australia. The company typically earns about 35% of group revenue in Australia and New Zealand, 25% in the US, and 40% in Europe.
68GF Score
Get the complete analysis for STU:SAB
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:SAB has been successfully added to your 
