Eisai CoESALF 74 Return-on-Tangible-Equity is -2.31% as of Mar. 2026. GuruFocus rates ESALF with a GF Score™ of 74/100 and a GF Value™ of $35.73 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 896 Drug Manufacturers companies, Eisai Co ranks worse than 51.67% 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. Eisai Co's annualized net income for the quarter that ended in Mar. 2026 was $-82 Mil. Eisai Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $3,551 Mil. Therefore, Eisai Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -2.31%.
The historical rank and industry rank for Eisai Co's Return-on-Tangible-Equity or its related term are showing as below:
ESALF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.11 Med: 11.18 Max: 31.99
Current: 7.13
During the past 13 years, Eisai Co's highest Return-on-Tangible-Equity was 31.99%. The lowest was 7.11%. And the median was 11.18%.
ESALF's Return-on-Tangible-Equity is ranked worse than 51.67% of 896
companies
in the Drug Manufacturers industry
Industry Median: 7.795
vs ESALF: 7.13
Eisai Co (OTCPK:ESALF) 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.
Eisai Co Return-on-Tangible-Equity Related Terms
Eisai Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Eisai Co'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.
ESALF vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Eisai Co'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.
Eisai Co Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Eisai Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Eisai Co'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 -2.31% mean?
Eisai Co (ESALF) has a Return-on-Tangible-Equity of -2.31% 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 Eisai Co and its competitors. Over the past decade, Eisai Co's Return-on-Tangible-Equity has ranged from 7.11 to 31.99. According to the industry distribution chart, Eisai Co ranks #463 out of 896 companies in the Drug Manufacturers industry, placing it in the top 51.7%.
Is Eisai Co's Return-on-Tangible-Equity too high?
Eisai Co's current Return-on-Tangible-Equity is -2.31%. Over the past 10 years, this metric has ranged from a low of 7.11 to a high of 31.99. Based on the distribution chart, Eisai Co ranks #463 out of 896 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Eisai Co has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eisai Co's Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Eisai Co ranks #463 out of 896 companies for Return-on-Tangible-Equity. This places Eisai Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.80. Historically, Eisai Co's own Return-on-Tangible-Equity has ranged from 7.11 to 31.99 over the past decade. 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. 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 Eisai Co 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. Eisai Co's current Return-on-Tangible-Equity is -2.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eisai Co stock overvalued right now?
Based on GuruFocus' analysis, Eisai Co (ESALF) is currently considered Significantly Undervalued. The stock's GF Value™ is $35.73, compared to a current price of $25.00 — trading 30% below its estimated fair value. The current Return-on-Tangible-Equity is -2.31%. Eisai Co's overall GF Score™ is 74/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Eisai Co (ESALF), the current Return-on-Tangible-Equity is -2.31% 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 Eisai Co (ESALF) Overvalued in 2026?
Based on GuruFocus' analysis, Eisai Co stock appears to be undervalued.
The current stock price of $25.00 is trading 30% below its estimated GF Value™ of $35.73.
GuruFocus considers Eisai Co to be Significantly Undervalued.
Key valuation signals for ESALF:
Return-on-Tangible-Equity: -2.31%
GF Value™: $35.73 vs. price of $25.00 (30% below fair value)
No single metric tells the full story. See the ESALF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eisai Co Ltd is a specialty and generic drug manufacturing company. The company's business consists of research and development, manufacturing, sales, import, and export of pharmaceuticals. The pharmaceutical business is categorized by region, including East Asia & Global South; Europe, Middle East, Africa, Russia, Oceania (EMEA); Americas; China; and Japan. The company also reports a consumer healthcare business for Japan. The vast majority of the company's revenue is derived from its American pharmaceutical business, followed by its Japanese pharmaceuticals segment. The company utilizes licensing strategies in order to expand its research, development, manufacturing, and marketing capabilities.
74GF Score
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