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. PharmaEssentia's annualized net income for the quarter that ended in Dec. 2025 was €160.8 Mil. PharmaEssentia's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €846.2 Mil. Therefore, PharmaEssentia's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 19.01%.
The historical rank and industry rank for PharmaEssentia's Return-on-Tangible-Equity or its related term are showing as below:
FRA:8Z1'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -72.98 Med: -28.51 Max: 17.33
Current: 17.33
During the past 13 years, PharmaEssentia's highest Return-on-Tangible-Equity was 17.33%. The lowest was -72.98%. And the median was -28.51%.
FRA:8Z1's Return-on-Tangible-Equity is ranked better than 74.8% of 897
companies
in the Drug Manufacturers industry
Industry Median: 7.9
vs FRA:8Z1: 17.33
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.
PharmaEssentia Return-on-Tangible-Equity Related Terms
PharmaEssentia Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for PharmaEssentia'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:8Z1 vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, PharmaEssentia'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.
PharmaEssentia Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, PharmaEssentia's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where PharmaEssentia'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 (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 19.01% mean?
PharmaEssentia (FRA:8Z1) has a Return-on-Tangible-Equity of 19.01% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on PharmaEssentia and its competitors. According to the industry distribution chart, PharmaEssentia ranks #226 out of 897 companies in the Drug Manufacturers industry, placing it in the top 25.2%.
Is PharmaEssentia's Return-on-Tangible-Equity too high?
PharmaEssentia's current Return-on-Tangible-Equity is 19.01%. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.90. PharmaEssentia's value of 19.01% is 140.6% above this industry median. Based on the distribution chart, PharmaEssentia ranks #226 out of 897 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, PharmaEssentia has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does PharmaEssentia's Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, PharmaEssentia ranks #226 out of 897 companies for Return-on-Tangible-Equity. This puts PharmaEssentia in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.90. PharmaEssentia's value of 19.01% is 140.6% above this benchmark. 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 897 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. PharmaEssentia's current Return-on-Tangible-Equity of 19.01% is 140.6% 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 PharmaEssentia 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. PharmaEssentia's current Return-on-Tangible-Equity is 19.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PharmaEssentia stock overvalued right now?
PharmaEssentia (FRA:8Z1) has a current Return-on-Tangible-Equity of 19.01%. The stock's GF Value™ is €14.50, compared to a current price of €15.50 — trading 6.9% above its estimated fair value. The current Return-on-Tangible-Equity is 19.01% and 140.6% above the Drug Manufacturers industry median of 7.90. PharmaEssentia's overall GF Score™ is 82/100 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 PharmaEssentia (FRA:8Z1), the current Return-on-Tangible-Equity is 19.01% as of Dec. 2025. 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 PharmaEssentia (FRA:8Z1) Overvalued in 2026?
Based on GuruFocus' analysis, PharmaEssentia stock appears to be overvalued.
The current stock price of €15.50 is trading 6.9% above its estimated GF Value™ of €14.50.
Key valuation signals for FRA:8Z1:
Return-on-Tangible-Equity: 19.01%
GF Value™: €14.50 vs. price of €15.50 (6.9% above fair value)
Industry Position: 140.6% above the Drug Manufacturers median (#226 of 897)
No single metric tells the full story. See the FRA:8Z1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PharmaEssentia Corp engages in medicine discovery, supplements in developing specialty pharmaceutical reagents, API and new drug patterns developments. Its products include BESREMi, Ropeginterferon alfa-2b, Ropeg + anti PD-1, PEG-IL-2, PEG-Cytokines, PD-1-IL-2v, NY-ESO-1 TCR-T, among others. It derives revenue from medicine products sales from contracts with customers.
82GF Score
Get the complete analysis for FRA:8Z1
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