Labat AfricaJSE:LAB Return-on-Tangible-Asset is 12.49% as of Nov. 2025. The stock has 5 warning signs investors should review. Among 1,004 Drug Manufacturers companies, Labat Africa ranks better than 98.01% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Labat Africa's annualizedNet Income for the quarter that ended in Nov. 2025 was R89.0 Mil. Labat Africa's average total tangible assets for the quarter that ended in Nov. 2025 was R713.2 Mil. Therefore, Labat Africa's annualized Return-on-Tangible-Asset for the quarter that ended in Nov. 2025 was 12.49%.
The historical rank and industry rank for Labat Africa's Return-on-Tangible-Asset or its related term are showing as below:
JSE:LAB'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -86.71 Med: -8.28 Max: 36.89
Current: 30.33
During the past 13 years, Labat Africa's highest Return-on-Tangible-Asset was 36.89%. The lowest was -86.71%. And the median was -8.28%.
JSE:LAB's Return-on-Tangible-Asset is ranked better than 98.01% of 1004
companies
in the Drug Manufacturers industry
Industry Median: 3.155
vs JSE:LAB: 30.33
Labat Africa (JSE:LAB) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Labat Africa Return-on-Tangible-Asset Related Terms
Labat Africa Return-on-Tangible-Asset Historical Data
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The historical data trend for Labat Africa's Return-on-Tangible-Asset 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.
JSE:LAB vs ZTS, UTHR, VTRS: Return-on-Tangible-Asset Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Labat Africa Return-on-Tangible-Asset vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Labat Africa's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Nov. 2025) net income data.
What does a Return-on-Tangible-Asset of 12.49% mean?
Labat Africa (JSE:LAB) has a Return-on-Tangible-Asset of 12.49% as of Nov. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Labat Africa and its competitors. According to the industry distribution chart, Labat Africa ranks #20 out of 1004 companies in the Drug Manufacturers industry, placing it in the top 2%.
Is Labat Africa's Return-on-Tangible-Asset too high?
Labat Africa's current Return-on-Tangible-Asset is 12.49%. The Drug Manufacturers industry median Return-on-Tangible-Asset is 3.16. Labat Africa's value of 12.49% is 295.9% above this industry median. Based on the distribution chart, Labat Africa ranks #20 out of 1004 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers.
How does Labat Africa's Return-on-Tangible-Asset compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #20 out of 1004 companies for Return-on-Tangible-Asset. This places Labat Africa in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.16. Labat Africa's value of 12.49% is 295.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Drug Manufacturers company?
The median Return-on-Tangible-Asset among Drug Manufacturers companies is 3.16, based on 1,004 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Labat Africa's current Return-on-Tangible-Asset of 12.49% is 295.9% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Labat Africa and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Asset is 3.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labat Africa's current Return-on-Tangible-Asset is 12.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.18, compared to a current price of R0.05 — trading 72.2% below its estimated fair value. The current Return-on-Tangible-Asset is 12.49% and 295.9% above the Drug Manufacturers industry median of 3.16. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Labat Africa (JSE:LAB), the current Return-on-Tangible-Asset is 12.49% as of Nov. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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