Knight TherapeuticsFRA:04K +0.81%73 Return-on-Tangible-Equity is 16.71% as of Mar. 2026, which is 818% above its 10-year median of 1.82. GuruFocus rates FRA:04K with a GF Score™ of 73/100 and a GF Value™ of €5.47. The stock has 6 warning signs investors should review. Among 901 Drug Manufacturers companies, Knight Therapeutics ranks worse than 67.15% 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. Knight Therapeutics's annualized net income for the quarter that ended in Mar. 2026 was €33.2 Mil. Knight Therapeutics's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €198.7 Mil. Therefore, Knight Therapeutics's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 16.71%.
The historical rank and industry rank for Knight Therapeutics's Return-on-Tangible-Equity or its related term are showing as below:
FRA:04K'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -7.28 Med: 1.82 Max: 7
Current: 1.7
During the past 13 years, Knight Therapeutics's highest Return-on-Tangible-Equity was 7.00%. The lowest was -7.28%. And the median was 1.82%.
FRA:04K's Return-on-Tangible-Equity is ranked worse than 67.15% of 901
companies
in the Drug Manufacturers industry
Industry Median: 7.9
vs FRA:04K: 1.70
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.
Knight Therapeutics Return-on-Tangible-Equity Related Terms
Knight Therapeutics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Knight Therapeutics'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.
FRA:04K vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Knight Therapeutics'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.
Knight Therapeutics Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Knight Therapeutics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Knight Therapeutics'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 16.71% mean?
Knight Therapeutics (FRA:04K) has a Return-on-Tangible-Equity of 16.71% 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 Knight Therapeutics and its competitors. This is 818% above median its historical median of 1.82. According to the industry distribution chart, Knight Therapeutics ranks #605 out of 901 companies in the Drug Manufacturers industry, placing it in the top 67.1%.
Is Knight Therapeutics' Return-on-Tangible-Equity too high?
Knight Therapeutics' current Return-on-Tangible-Equity of 16.71% is 818% above median its 10-year median of 1.82. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.90. Knight Therapeutics' value of 16.71% is 111.5% above this industry median. Based on the distribution chart, Knight Therapeutics ranks #605 out of 901 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Knight Therapeutics has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Knight Therapeutics' Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Knight Therapeutics ranks #605 out of 901 companies for Return-on-Tangible-Equity. This places Knight Therapeutics in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.90. Knight Therapeutics' value of 16.71% is 111.5% above this benchmark. While the company's 10-year median is 1.82 vs. the industry median of 7.90, Knight Therapeutics 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 7.90, based on 901 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. Knight Therapeutics's current Return-on-Tangible-Equity of 16.71% is 111.5% 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-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 Knight Therapeutics and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Knight Therapeutics's current Return-on-Tangible-Equity is 16.71%, which is 818% above median its own 10-year median of 1.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Knight Therapeutics stock overvalued right now?
Knight Therapeutics (FRA:04K) has a current Return-on-Tangible-Equity of 16.71%. The stock's GF Value™ is €5.47, compared to a current price of €6.20 — trading 13.3% above its estimated fair value. The current Return-on-Tangible-Equity is 16.71%, which is 818% above median its 10-year median of 1.82 and 111.5% above the Drug Manufacturers industry median of 7.90. Knight Therapeutics' overall GF Score™ is 73/100 with 6 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 Knight Therapeutics (FRA:04K), the current Return-on-Tangible-Equity is 16.71% 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 Knight Therapeutics (FRA:04K) Overvalued in 2026?
Based on GuruFocus' analysis, Knight Therapeutics stock appears to be overvalued.
The current stock price of €6.20 is trading 13.3% above its estimated GF Value™ of €5.47.
Key valuation signals for FRA:04K:
Return-on-Tangible-Equity: 16.71% (818% above median its 10-year median of 1.82)
GF Value™: €5.47 vs. price of €6.20 (13.3% above fair value)
Industry Position: 111.5% above the Drug Manufacturers median (#605 of 901)
No single metric tells the full story. See the FRA:04K stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Knight Therapeutics Inc is a specialty and generic drug manufacturing company. The company's principal business activity is focused on developing, acquiring, in-licensing, out-licensing, marketing, and commercializing pharmaceuticalproducts. and distributing pharmaceutical products, consumer health products, and medical devices in Canada, Latin America and select international markets. The company finances other life sciences companies across the globe in order to generate interest income, strengthen relationships in the life sciences industry, and to secure product distribution rights. Geographically, the company generates revenue from Brazil, Canada, Colombia, Argentina, Mexico, Rest of LATAM, and Others, with the majority revenue generated from the Brazil region.
73GF Score
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