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. Adagene's annualized net income for the quarter that ended in Dec. 2025 was €-7.06 Mil. Adagene's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €31.53 Mil. Therefore, Adagene's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -22.39%.
The historical rank and industry rank for Adagene's Return-on-Tangible-Equity or its related term are showing as below:
FRA:978'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -217.89 Med: -55.21 Max: -24.66
Current: -42.68
During the past 8 years, Adagene's highest Return-on-Tangible-Equity was -24.66%. The lowest was -217.89%. And the median was -55.21%.
FRA:978's Return-on-Tangible-Equity is ranked worse than 50.38% of 1195
companies
in the Biotechnology industry
Industry Median: -42.21
vs FRA:978: -42.68
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.
Adagene Return-on-Tangible-Equity Related Terms
Adagene Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Adagene'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:978 vs RNAC, LYEL, ALXO: Return-on-Tangible-Equity Comparison
For the Biotechnology subindustry, Adagene'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.
Adagene Return-on-Tangible-Equity vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Adagene's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Adagene'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 two times the semi-annual (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 -22.39% mean?
Adagene (FRA:978) has a Return-on-Tangible-Equity of -22.39% 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 Adagene and its competitors. According to the industry distribution chart, Adagene ranks #602 out of 1195 companies in the Biotechnology industry, placing it in the top 50.4%.
Is Adagene's Return-on-Tangible-Equity too high?
Adagene's current Return-on-Tangible-Equity is -22.39%. Based on the distribution chart, Adagene ranks #602 out of 1195 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Adagene has a GF Score™ of 42/100, reflecting its overall financial health beyond just this single metric.
How does Adagene's Return-on-Tangible-Equity compare to RNAC and LYEL?
According to the Biotechnology industry distribution chart, Adagene ranks #602 out of 1195 companies for Return-on-Tangible-Equity. This places Adagene in the lower half of its industry. 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 Biotechnology company?
A good Return-on-Tangible-Equity depends on the Biotechnology industry context. 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 Adagene and its competitors. Adagene's current Return-on-Tangible-Equity is -22.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adagene stock overvalued right now?
Adagene (FRA:978) has a current Return-on-Tangible-Equity of -22.39%. The stock's GF Value™ is €11.97, compared to a current price of €3.30 — trading 72.4% below its estimated fair value. The current Return-on-Tangible-Equity is -22.39%. Adagene's overall GF Score™ is 42/100 with 3 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 Adagene (FRA:978), the current Return-on-Tangible-Equity is -22.39% 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 Adagene (FRA:978) Overvalued in 2026?
Based on GuruFocus' analysis, Adagene stock appears to be undervalued.
The current stock price of €3.30 is trading 72.4% below its estimated GF Value™ of €11.97.
Key valuation signals for FRA:978:
Return-on-Tangible-Equity: -22.39%
GF Value™: €11.97 vs. price of €3.30 (72.4% below fair value)
No single metric tells the full story. See the FRA:978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adagene Inc is a platform-driven, clinical-stage biotechnology company focused on the discovery and development of novel antibody-based cancer immunotherapies. The Company leverages computational biology to design and develop novel antibodies. Powered by its Dynamic Precision Library (DPL) platform, which fuels its NEObody, SAFEbody, and POWERbody technologies, it is developing a pipeline of immunotherapies. Its candidate, ADG126 (muzastotug), an anti-CTLA-4 SAFEbody, is in phase 1b/2 and phase 2 clinical development for metastatic microsatellite-stable colorectal cancer. Its clinical-stage products include ADG126 and ADG116, investigational fully human anti-CTLA-4 mAbs generated through SAFEbody and NEObody technologies.
42GF Score
Get the complete analysis for FRA:978
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
FRA:978 has been successfully added to your 
