BSP:PFRM3's Return-on-Tangible-Equity is ranked better than 67.57% of 111
companies
in the Medical Distribution industry
Industry Median: 8.81
vs BSP:PFRM3: 14.82
Profarma Distribuidora De Produtos Farmaceuticos (BSP:PFRM3) 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.
Profarma Distribuidora De Produtos Farmaceuticos Return-on-Tangible-Equity Related Terms
Profarma Distribuidora De Produtos Farmaceuticos Return-on-Tangible-Equity Historical Data
* 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.
Profarma Distribuidora De Produtos Farmaceuticos Return-on-Tangible-Equity Chart
Profarma Distribuidora De Produtos Farmaceuticos Annual Data
BSP:PFRM3 vs MCK, CAH, COR: Return-on-Tangible-Equity Comparison
For the Medical Distribution subindustry, Profarma Distribuidora De Produtos Farmaceuticos'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.
Profarma Distribuidora De Produtos Farmaceuticos Return-on-Tangible-Equity vs Medical Distribution Industry
* 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 four times the quarterly (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 -0.99% mean?
Profarma Distribuidora De Produtos Farmaceuticos (BSP:PFRM3) has a Return-on-Tangible-Equity of -0.99% 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 Profarma Distribuidora De Produtos Farmaceuticos and its competitors. According to the industry distribution chart, Profarma Distribuidora De Produtos Farmaceuticos ranks #36 out of 111 companies in the Medical Distribution industry, placing it in the top 32.4%.
Is Profarma Distribuidora De Produtos Farmaceuticos' Return-on-Tangible-Equity too high?
Profarma Distribuidora De Produtos Farmaceuticos' current Return-on-Tangible-Equity is -0.99%. Based on the distribution chart, Profarma Distribuidora De Produtos Farmaceuticos ranks #36 out of 111 companies in the Medical Distribution industry, which is above the industry midpoint. Overall, Profarma Distribuidora De Produtos Farmaceuticos has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Profarma Distribuidora De Produtos Farmaceuticos' Return-on-Tangible-Equity compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, Profarma Distribuidora De Produtos Farmaceuticos ranks #36 out of 111 companies for Return-on-Tangible-Equity. This puts Profarma Distribuidora De Produtos Farmaceuticos in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.81. 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 Medical Distribution company?
The median Return-on-Tangible-Equity among Medical Distribution companies is 8.81, based on 111 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 Profarma Distribuidora De Produtos Farmaceuticos and its competitors. For the Medical Distribution industry, the median Return-on-Tangible-Equity is 8.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Profarma Distribuidora De Produtos Farmaceuticos's current Return-on-Tangible-Equity is -0.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Profarma Distribuidora De Produtos Farmaceuticos stock overvalued right now?
Based on GuruFocus' analysis, Profarma Distribuidora De Produtos Farmaceuticos (BSP:PFRM3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$8.05, compared to a current price of R$6.90 — trading 14.3% below its estimated fair value. The current Return-on-Tangible-Equity is -0.99%. Profarma Distribuidora De Produtos Farmaceuticos' overall GF Score™ is 75/100 with 5 warning signs to review. 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 Profarma Distribuidora De Produtos Farmaceuticos (BSP:PFRM3), the current Return-on-Tangible-Equity is -0.99% 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.
Is Profarma Distribuidora De Produtos Farmaceuticos (BSP:PFRM3) Overvalued in 2026?
Based on GuruFocus' analysis, Profarma Distribuidora De Produtos Farmaceuticos stock appears to be undervalued.
The current stock price of R$6.90 is trading 14.3% below its estimated GF Value™ of R$8.05.
GuruFocus considers Profarma Distribuidora De Produtos Farmaceuticos to be Modestly Undervalued.
Key valuation signals for BSP:PFRM3:
Return-on-Tangible-Equity: -0.99%
GF Value™: R$8.05 vs. price of R$6.90 (14.3% below fair value)
No single metric tells the full story. See the BSP:PFRM3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Profarma Distribuidora De Produtos Farmaceuticos Business Description
Profarma Distribuidora De Produtos Farmaceuticos SA is a Brazil-based company. It is engaged in wholesale and distribution of pharmaceuticals, cosmetics and similar products, and toiletries. Profarma also holds interests in other companies, regardless of their business sector. The company through its logistics department distributes products in the South, Southeast, Northeast and Center-West regions of Brazil. The firm operates in the pharmaceutical distribution, hospital and specialty, retail segments.
75GF Score
Get the complete analysis for BSP:PFRM3
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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