EM Systems CoFRA:EMO +1.54%69 Return-on-Tangible-Equity is 1.20% as of Dec. 2025, which is 91% below its 10-year median of 13.89. GuruFocus rates FRA:EMO with a GF Score™ of 69/100 and a GF Value™ of €3.95. The stock has 4 warning signs investors should review. Among 579 Healthcare Providers & Services companies, EM Systems Co ranks worse than 53.54% 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. EM Systems Co's annualized net income for the quarter that ended in Dec. 2025 was €1.1 Mil. EM Systems Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €91.3 Mil. Therefore, EM Systems Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 1.20%.
The historical rank and industry rank for EM Systems Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:EMO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.03 Med: 13.89 Max: 16.98
Current: 9.03
During the past 13 years, EM Systems Co's highest Return-on-Tangible-Equity was 16.98%. The lowest was 9.03%. And the median was 13.89%.
FRA:EMO's Return-on-Tangible-Equity is ranked worse than 53.54% of 579
companies
in the Healthcare Providers & Services industry
Industry Median: 10.21
vs FRA:EMO: 9.03
EM Systems Co (FRA:EMO) 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.
EM Systems Co Return-on-Tangible-Equity Related Terms
EM Systems Co Return-on-Tangible-Equity Historical Data
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The historical data trend for EM Systems 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:EMO vs VEEV, BTSG, TEM: Return-on-Tangible-Equity Comparison
For the Health Information Services subindustry, EM Systems 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.
EM Systems Co Return-on-Tangible-Equity vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, EM Systems Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where EM Systems 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 (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 1.20% mean?
EM Systems Co (FRA:EMO) has a Return-on-Tangible-Equity of 1.20% 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 EM Systems Co and its competitors. This is 91% below median its historical median of 13.89. Over the past decade, EM Systems Co's Return-on-Tangible-Equity has ranged from 9.03 to 16.98. According to the industry distribution chart, EM Systems Co ranks #310 out of 579 companies in the Healthcare Providers & Services industry, placing it in the top 53.5%.
Is EM Systems Co's Return-on-Tangible-Equity too high?
EM Systems Co's current Return-on-Tangible-Equity of 1.20% is 91% below median its 10-year median of 13.89. Over the past 10 years, this metric has ranged from a low of 9.03 to a high of 16.98. The Healthcare Providers & Services industry median Return-on-Tangible-Equity is 10.21. EM Systems Co's value of 1.20% is 88.2% below this industry median. Based on the distribution chart, EM Systems Co ranks #310 out of 579 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, EM Systems Co has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does EM Systems Co's Return-on-Tangible-Equity compare to VEEV and BTSG?
According to the Healthcare Providers & Services industry distribution chart, EM Systems Co ranks #310 out of 579 companies for Return-on-Tangible-Equity. This places EM Systems Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.21. EM Systems Co's value of 1.20% is 88.2% below this benchmark. Historically, EM Systems Co's own Return-on-Tangible-Equity has ranged from 9.03 to 16.98 over the past decade. While the company's 10-year median is 13.89 vs. the industry median of 10.21, EM Systems Co has consistently been below 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 Healthcare Providers & Services company?
The median Return-on-Tangible-Equity among Healthcare Providers & Services companies is 10.21, based on 579 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. EM Systems Co's current Return-on-Tangible-Equity of 1.20% is 88.2% below 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 EM Systems Co and its competitors. For the Healthcare Providers & Services industry, the median Return-on-Tangible-Equity is 10.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EM Systems Co's current Return-on-Tangible-Equity is 1.20%, which is 91% below median its own 10-year median of 13.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EM Systems Co stock overvalued right now?
EM Systems Co (FRA:EMO) has a current Return-on-Tangible-Equity of 1.20%. The stock's GF Value™ is €3.95, compared to a current price of €2.64 — trading 33.2% below its estimated fair value. The current Return-on-Tangible-Equity is 1.20%, which is 91% below median its 10-year median of 13.89 and 88.2% below the Healthcare Providers & Services industry median of 10.21. EM Systems Co's overall GF Score™ is 69/100 with 4 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 EM Systems Co (FRA:EMO), the current Return-on-Tangible-Equity is 1.20% 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 EM Systems Co (FRA:EMO) Overvalued in 2026?
Based on GuruFocus' analysis, EM Systems Co stock appears to be undervalued.
The current stock price of €2.64 is trading 33.2% below its estimated GF Value™ of €3.95.
Key valuation signals for FRA:EMO:
Return-on-Tangible-Equity: 1.20% (91% below median its 10-year median of 13.89)
GF Value™: €3.95 vs. price of €2.64 (33.2% below fair value)
Industry Position: 88.2% below the Healthcare Providers & Services median (#310 of 579)
No single metric tells the full story. See the FRA:EMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EM Systems Co Ltd is a Japan-based company that develops, sells, and maintains systems for the medical (clinics and insurance pharmacies) and nursing/welfare industries. It operates its business in three divisions: Pharmacy System Business develops and sells systems for pharmacies, and provides related supplies and maintenance services; Medical system involved in the development and sales of medical office administration computer systems for medical institutions and clinics; Nursing Care/Welfare Systems Business products are systems for nursing care/welfare service providers and medical and nursing care collaboration solutions; Other businesses operates through its subsidiray that provides promotes cashless payments for clinics and pharmacies and Others services.
69GF Score
Get the complete analysis for FRA:EMO
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