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Daiichinkyo CoFRA:D4S +0.81%76 Return-on-Tangible-Equity is 12.63% as of Mar. 2026, which is 30% above its 10-year median of 9.72. GuruFocus rates FRA:D4S with a GF Score™ of 76/100 and a GF Value™ of €32.74 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 901 Drug Manufacturers companies, Daiichinkyo Co ranks better than 78.8% 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. Daiichinkyo Co's annualized net income for the quarter that ended in Mar. 2026 was €925 Mil. Daiichinkyo Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €7,322 Mil. Therefore, Daiichinkyo Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.63%.
The historical rank and industry rank for Daiichinkyo Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:D4S'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.87 Med: 9.72 Max: 21.99
Current: 19.97
During the past 13 years, Daiichinkyo Co's highest Return-on-Tangible-Equity was 21.99%. The lowest was 5.87%. And the median was 9.72%.
FRA:D4S's Return-on-Tangible-Equity is ranked better than 78.8% of 901
companies
in the Drug Manufacturers industry
Industry Median: 7.9
vs FRA:D4S: 19.97
Daiichinkyo Co (FRA:D4S) 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.
Daiichinkyo Co Return-on-Tangible-Equity Related Terms
Daiichinkyo Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Daiichinkyo 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.
FRA:D4S vs LLY, JNJ, ABBV: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - General subindustry, Daiichinkyo 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.
Daiichinkyo Co Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Daiichinkyo Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Daiichinkyo 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 12.63% mean?
Daiichinkyo Co (FRA:D4S) has a Return-on-Tangible-Equity of 12.63% 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 Daiichinkyo Co and its competitors. This is 30% above median its historical median of 9.72. Over the past decade, Daiichinkyo Co's Return-on-Tangible-Equity has ranged from 5.87 to 21.99. According to the industry distribution chart, Daiichinkyo Co ranks #191 out of 901 companies in the Drug Manufacturers industry, placing it in the top 21.2%.
Is Daiichinkyo Co's Return-on-Tangible-Equity too high?
Daiichinkyo Co's current Return-on-Tangible-Equity of 12.63% is 30% above median its 10-year median of 9.72. Over the past 10 years, this metric has ranged from a low of 5.87 to a high of 21.99. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.90. Daiichinkyo Co's value of 12.63% is 59.9% above this industry median. Based on the distribution chart, Daiichinkyo Co ranks #191 out of 901 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Daiichinkyo Co has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Daiichinkyo Co's Return-on-Tangible-Equity compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Daiichinkyo Co ranks #191 out of 901 companies for Return-on-Tangible-Equity. This places Daiichinkyo Co in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.90. Daiichinkyo Co's value of 12.63% is 59.9% above this benchmark. Historically, Daiichinkyo Co's own Return-on-Tangible-Equity has ranged from 5.87 to 21.99 over the past decade. While the company's 10-year median is 9.72 vs. the industry median of 7.90, Daiichinkyo Co 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. Daiichinkyo Co's current Return-on-Tangible-Equity of 12.63% is 59.9% 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 Daiichinkyo Co 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. Daiichinkyo Co's current Return-on-Tangible-Equity is 12.63%, which is 30% above median its own 10-year median of 9.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiichinkyo Co stock overvalued right now?
Based on GuruFocus' analysis, Daiichinkyo Co (FRA:D4S) is currently considered Significantly Undervalued. The stock's GF Value™ is €32.74, compared to a current price of €14.77 — trading 54.9% below its estimated fair value. The current Return-on-Tangible-Equity is 12.63%, which is 30% above median its 10-year median of 9.72 and 59.9% above the Drug Manufacturers industry median of 7.90. Daiichinkyo Co's overall GF Score™ is 76/100 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 Daiichinkyo Co (FRA:D4S), the current Return-on-Tangible-Equity is 12.63% 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 Daiichinkyo Co (FRA:D4S) Overvalued in 2026?
Based on GuruFocus' analysis, Daiichinkyo Co stock appears to be undervalued.
The current stock price of €14.77 is trading 54.9% below its estimated GF Value™ of €32.74.
GuruFocus considers Daiichinkyo Co to be Significantly Undervalued.
Key valuation signals for FRA:D4S:
Return-on-Tangible-Equity: 12.63% (30% above median its 10-year median of 9.72)
GF Value™: €32.74 vs. price of €14.77 (54.9% below fair value)
Industry Position: 59.9% above the Drug Manufacturers median (#191 of 901)
No single metric tells the full story. See the FRA:D4S stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daiichi Sankyo was established by the merger of Daiichi Pharmaceuticals and Sankyo in 2005. As of 2024, approximately one quarter of revenue comes from its Japan businesses, which will shrink in the future as the company expands its global footprint. Its primary growth driver is its leading platform of antibody drug conjugates, or ADCs. Its lead ADCs are Enhertu (HER2), Datroway (TROP2), I-DXd (B7-H3), HER3-DXd (HER3), and R-DXd (CDH6). Enhertu was first approved in the US in December 2019, and Datroway was first approved in January 2025.
76GF Score
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