Little Green PharmaASX:LGP +4.55% Return-on-Tangible-Equity is -1.20% as of Mar. 2026. The stock has 3 warning signs investors should review. Among 898 Drug Manufacturers companies, Little Green Pharma ranks worse than 73.27% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Little Green Pharma's annualized net income for the quarter that ended in Mar. 2026 was A$-0.96 Mil. Little Green Pharma's average shareholder tangible equity for the quarter that ended in Mar. 2026 was A$80.64 Mil. Therefore, Little Green Pharma's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -1.20%.
The historical rank and industry rank for Little Green Pharma's Return-on-Tangible-Equity or its related term are showing as below:
ASX:LGP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -72.8 Med: -6.23 Max: 46.93
Current: -1.74
During the past 7 years, Little Green Pharma's highest Return-on-Tangible-Equity was 46.93%. The lowest was -72.80%. And the median was -6.23%.
ASX:LGP's Return-on-Tangible-Equity is ranked worse than 73.27% of 898
companies
in the Drug Manufacturers industry
Industry Median: 7.88
vs ASX:LGP: -1.74
Little Green Pharma (ASX:LGP) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
Little Green Pharma Return-on-Tangible-Equity Related Terms
Little Green Pharma Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Little Green Pharma's Return-on-Tangible-Equity 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.
Little Green Pharma Return-on-Tangible-Equity Chart
ASX:LGP vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Little Green Pharma's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Little Green Pharma Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Little Green Pharma's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Little Green Pharma's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -1.20% mean?
Little Green Pharma (ASX:LGP) has a Return-on-Tangible-Equity of -1.20% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Little Green Pharma and its competitors. According to the industry distribution chart, Little Green Pharma ranks #658 out of 898 companies in the Drug Manufacturers industry, placing it in the top 73.3%.
Is Little Green Pharma's Return-on-Tangible-Equity too high?
Little Green Pharma's current Return-on-Tangible-Equity is -1.20%. Based on the distribution chart, Little Green Pharma ranks #658 out of 898 companies in the Drug Manufacturers industry, which is below the industry midpoint.
How does Little Green Pharma's Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Little Green Pharma ranks #658 out of 898 companies for Return-on-Tangible-Equity. This places Little Green Pharma in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.88. 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-Equity for a Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.88, based on 898 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Little Green Pharma and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Little Green Pharma's current Return-on-Tangible-Equity is -1.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Little Green Pharma stock overvalued right now?
Based on GuruFocus' analysis, Little Green Pharma (ASX:LGP) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.17, compared to a current price of A$0.07 — trading 59.4% below its estimated fair value. The current Return-on-Tangible-Equity is -1.20%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Little Green Pharma (ASX:LGP), the current Return-on-Tangible-Equity is -1.20% 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.
Little Green Pharma Ltd is engaged in the vertically integrated medicinal cannabis business. The business activities of the company include cultivation, production, research and development, manufacturing, and distribution of medicinal cannabis products. The company's two key types of products available at Little Green Pharma are oils (which are ingested) and flowers (which are usually inhaled through vaporizing). It offers LGP-branded medicinal cannabis oil products in the Australian and European markets. The Group is organized into two operating segments: Australia and Europe (cultivation, production and distribution of cannabis products to Australian and European customers).
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