ISEC Healthcare Ltd.'s (Catalist:40T) Stock Has Fared Decently: Is the Market Following Strong Financials?

Simply Wall St

Wed, February 11, 2026 at 4:52 PM GMT+9 3 min read

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Most readers would already know that ISEC Healthcare’s (Catalist:40T) stock increased by 9.5% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Specifically, we decided to study ISEC Healthcare’s ROE in this article.

Return on equity or ROE is a key measure used to assess how efficiently a company’s management is utilizing the company’s capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.

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How Do You Calculate Return On Equity?

ROE can be calculated by using the formula:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity

So, based on the above formula, the ROE for ISEC Healthcare is:

13% = S$13m ÷ S$99m (Based on the trailing twelve months to September 2025).

The ‘return’ is the yearly profit. One way to conceptualize this is that for each SGD1 of shareholders’ capital it has, the company made SGD0.13 in profit.

View our latest analysis for ISEC Healthcare

What Has ROE Got To Do With Earnings Growth?

Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or “retain”, we are then able to evaluate a company’s future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.

ISEC Healthcare’s Earnings Growth And 13% ROE

To start with, ISEC Healthcare’s ROE looks acceptable. Especially when compared to the industry average of 7.7% the company’s ROE looks pretty impressive. This probably laid the ground for ISEC Healthcare’s moderate 18% net income growth seen over the past five years.

Next, on comparing with the industry net income growth, we found that the growth figure reported by ISEC Healthcare compares quite favourably to the industry average, which shows a decline of 1.1% over the last few years.

Catalist:40T Past Earnings Growth February 11th 2026

The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It’s important for an investor to know whether the market has priced in the company’s expected earnings growth (or decline). Doing so will help them establish if the stock’s future looks promising or ominous. Is ISEC Healthcare fairly valued compared to other companies? These 3 valuation measures might help you decide.

Story Continues  

Is ISEC Healthcare Making Efficient Use Of Its Profits?

While the company did pay out a portion of its dividend in the past, it currently doesn’t pay a regular dividend. We infer that the company has been reinvesting all of its profits to grow its business.

Summary

In total, we are pretty happy with ISEC Healthcare’s performance. In particular, it’s great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Not to forget, share price outcomes are also dependent on the potential risks a company may face. So it is important for investors to be aware of the risks involved in the business. To know the 1 risk we have identified for ISEC Healthcare visit our risks dashboard for free.

Have feedback on this article? Concerned about the content? Get in touch** with us directly.**_ Alternatively, email editorial-team (at) simplywallst.com._

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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