Elite PharmaceuticalsELTP -7.57%44 Return-on-Tangible-Equity is 87.51% as of Mar. 2026, which is 257% above its 10-year median of 24.53. GuruFocus rates ELTP with a GF Score™ of 44/100 and a GF Value™ of $0.57 (Possible Value Trap). The stock has 1 warning sign investors should review. Among 896 Drug Manufacturers companies, Elite Pharmaceuticals ranks better than 92.41% 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. Elite Pharmaceuticals's annualized net income for the quarter that ended in Mar. 2026 was $73.8 Mil. Elite Pharmaceuticals's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $84.4 Mil. Therefore, Elite Pharmaceuticals's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 87.51%.
The historical rank and industry rank for Elite Pharmaceuticals's Return-on-Tangible-Equity or its related term are showing as below:
ELTP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1144.85 Med: 24.53 Max: 86.9
Current: 86.9
During the past 13 years, Elite Pharmaceuticals's highest Return-on-Tangible-Equity was 86.90%. The lowest was -1,144.85%. And the median was 24.53%.
ELTP's Return-on-Tangible-Equity is ranked better than 92.41% of 896
companies
in the Drug Manufacturers industry
Industry Median: 7.795
vs ELTP: 86.90
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.
Elite Pharmaceuticals Return-on-Tangible-Equity Related Terms
Elite Pharmaceuticals Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Elite Pharmaceuticals'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.
ELTP vs EBS, NIKA, EOLS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Elite Pharmaceuticals'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.
Elite Pharmaceuticals Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Elite Pharmaceuticals's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Elite Pharmaceuticals'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 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 87.51% mean?
Elite Pharmaceuticals (ELTP) has a Return-on-Tangible-Equity of 87.51% 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 Elite Pharmaceuticals and its competitors. This is 257% above median its historical median of 24.53. According to the industry distribution chart, Elite Pharmaceuticals ranks #68 out of 896 companies in the Drug Manufacturers industry, placing it in the top 7.6%.
Is Elite Pharmaceuticals' Return-on-Tangible-Equity too high?
Elite Pharmaceuticals' current Return-on-Tangible-Equity of 87.51% is 257% above median its 10-year median of 24.53. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.80. Elite Pharmaceuticals' value of 87.51% is 1022.6% above this industry median. Based on the distribution chart, Elite Pharmaceuticals ranks #68 out of 896 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Elite Pharmaceuticals has a GF Score™ of 44/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elite Pharmaceuticals' Return-on-Tangible-Equity compare to EBS and NIKA?
According to the Drug Manufacturers industry distribution chart, Elite Pharmaceuticals ranks #68 out of 896 companies for Return-on-Tangible-Equity. This places Elite Pharmaceuticals in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.80. Elite Pharmaceuticals' value of 87.51% is 1022.6% above this benchmark. While the company's 10-year median is 24.53 vs. the industry median of 7.80, Elite Pharmaceuticals 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-Equity for a Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.80, based on 896 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. Elite Pharmaceuticals's current Return-on-Tangible-Equity of 87.51% is 1022.6% 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-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 Elite Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elite Pharmaceuticals's current Return-on-Tangible-Equity is 87.51%, which is 257% above median its own 10-year median of 24.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elite Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Elite Pharmaceuticals (ELTP) is currently considered Possible Value Trap. The stock's GF Value™ is $0.57, compared to a current price of $0.37 — trading 35.9% below its estimated fair value. The current Return-on-Tangible-Equity is 87.51%, which is 257% above median its 10-year median of 24.53 and 1022.6% above the Drug Manufacturers industry median of 7.80. Elite Pharmaceuticals' overall GF Score™ is 44/100 with 1 warning sign 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 Elite Pharmaceuticals (ELTP), the current Return-on-Tangible-Equity is 87.51% 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 Elite Pharmaceuticals (ELTP) Overvalued in 2026?
Based on GuruFocus' analysis, Elite Pharmaceuticals stock appears to be undervalued.
The current stock price of $0.37 is trading 35.9% below its estimated GF Value™ of $0.57.
GuruFocus considers Elite Pharmaceuticals to be Possible Value Trap.
Key valuation signals for ELTP:
Return-on-Tangible-Equity: 87.51% (257% above median its 10-year median of 24.53)
GF Value™: $0.57 vs. price of $0.37 (35.9% below fair value)
Industry Position: 1022.6% above the Drug Manufacturers median (#68 of 896)
No single metric tells the full story. See the ELTP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elite Pharmaceuticals Inc is a pharmaceutical company. It is principally engaged in the development and manufacture of oral, controlled-release products, using proprietary know-how and technology. The company's operating segment includes Abbreviated New Drug Applications (ANDA) and New Drug Applications (NDA). It generates maximum revenue from the ANDA segment. The company focuses on developing pain management products; manufacturing a line of generic pharmaceutical products with approved Abbreviated New Drug Applications; developing additional generic pharmaceutical products; development of other products in its pipeline including the products with its partners; and commercialization of new products.
44GF Score
Get the complete analysis for ELTP
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ELTP has been successfully added to your 
