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Faes FarmaXMAD:FAE +0.23%93 Return-on-Tangible-Asset is 6.60% as of Dec. 2025, which is 63% below its 10-year median of 17.69. GuruFocus rates XMAD:FAE with a GF Score™ of 93/100 and a GF Value™ of €5.18 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,007 Drug Manufacturers companies, Faes Farma ranks better than 79.05% 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. Faes Farma's annualizedNet Income for the quarter that ended in Dec. 2025 was €54.6 Mil. Faes Farma's average total tangible assets for the quarter that ended in Dec. 2025 was €827.7 Mil. Therefore, Faes Farma's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 6.60%.
The historical rank and industry rank for Faes Farma's Return-on-Tangible-Asset or its related term are showing as below:
XMAD:FAE'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 10.26 Med: 17.69 Max: 20.35
Current: 10.28
During the past 13 years, Faes Farma's highest Return-on-Tangible-Asset was 20.35%. The lowest was 10.26%. And the median was 17.69%.
XMAD:FAE's Return-on-Tangible-Asset is ranked better than 79.05% of 1007
companies
in the Drug Manufacturers industry
Industry Median: 3.15
vs XMAD:FAE: 10.28
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.
Faes Farma Return-on-Tangible-Asset Related Terms
Faes Farma Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Faes Farma'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.
XMAD:FAE vs ZTS, UTHR, VTRS: Return-on-Tangible-Asset Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Faes Farma'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.
Faes Farma Return-on-Tangible-Asset vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Faes Farma's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Faes Farma'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 (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 6.60% mean?
Faes Farma (XMAD:FAE) has a Return-on-Tangible-Asset of 6.60% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Faes Farma and its competitors. This is 63% below median its historical median of 17.69. Over the past decade, Faes Farma's Return-on-Tangible-Asset has ranged from 10.26 to 20.35. According to the industry distribution chart, Faes Farma ranks #211 out of 1007 companies in the Drug Manufacturers industry, placing it in the top 21%.
Is Faes Farma's Return-on-Tangible-Asset too high?
Faes Farma's current Return-on-Tangible-Asset of 6.60% is 63% below median its 10-year median of 17.69. Over the past 10 years, this metric has ranged from a low of 10.26 to a high of 20.35. The Drug Manufacturers industry median Return-on-Tangible-Asset is 3.15. Faes Farma's value of 6.60% is 109.5% above this industry median. Based on the distribution chart, Faes Farma ranks #211 out of 1007 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Faes Farma has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Faes Farma's Return-on-Tangible-Asset compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Faes Farma ranks #211 out of 1007 companies for Return-on-Tangible-Asset. This places Faes Farma in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.15. Faes Farma's value of 6.60% is 109.5% above this benchmark. Historically, Faes Farma's own Return-on-Tangible-Asset has ranged from 10.26 to 20.35 over the past decade. While the company's 10-year median is 17.69 vs. the industry median of 3.15, Faes Farma 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 Return-on-Tangible-Asset for a Drug Manufacturers company?
The median Return-on-Tangible-Asset among Drug Manufacturers companies is 3.15, based on 1,007 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. Faes Farma's current Return-on-Tangible-Asset of 6.60% is 109.5% 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 Faes Farma and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Asset is 3.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Faes Farma's current Return-on-Tangible-Asset is 6.60%, which is 63% below median its own 10-year median of 17.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Faes Farma stock overvalued right now?
Based on GuruFocus' analysis, Faes Farma (XMAD:FAE) is currently considered Modestly Undervalued. The stock's GF Value™ is €5.18, compared to a current price of €4.36 — trading 15.9% below its estimated fair value. The current Return-on-Tangible-Asset is 6.60%, which is 63% below median its 10-year median of 17.69 and 109.5% above the Drug Manufacturers industry median of 3.15. Faes Farma's overall GF Score™ is 93/100 with 7 warning signs to review. 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 Faes Farma (XMAD:FAE), the current Return-on-Tangible-Asset is 6.60% 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 Faes Farma (XMAD:FAE) Overvalued in 2026?
Based on GuruFocus' analysis, Faes Farma stock appears to be undervalued.
The current stock price of €4.36 is trading 15.9% below its estimated GF Value™ of €5.18.
GuruFocus considers Faes Farma to be Modestly Undervalued.
Key valuation signals for XMAD:FAE:
Return-on-Tangible-Asset: 6.60% (63% below median its 10-year median of 17.69)
GF Value™: €5.18 vs. price of €4.36 (15.9% below fair value)
Industry Position: 109.5% above the Drug Manufacturers median (#211 of 1007)
No single metric tells the full story. See the XMAD:FAE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Faes Farma SA purpose is manufacturing and selling all kinds of chemical and pharmaceutical products, foodstuffs, cosmetics, dietetics and medicinal plants, as well as acquiring, purchasing, disposing of, investing in, holding, using, managing, administering, marketing and leasing corporations, securities and real estate, patents, trademarks and registered brands and equity interests. It is mainly engaged in the manufacture and sale of pharmaceutical products, as well as in the manufacture and sale of animal nutrition and health products. Its segments are Pharmaceutical and healthcare specialities, Animal nutrition and health, and Other segments. It generates majority of revenue from Pharmaceutical and healthcare specialities. It operates mainly in domestic and international markets.
93GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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