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Krka DDFRA:KN8 -2.76%60 Return-on-Tangible-Equity is 21.01% as of Mar. 2026, which is 25% above its 10-year median of 16.78. GuruFocus rates FRA:KN8 with a GF Score™ of 60/100 and a GF Value™ of €148.63 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 901 Drug Manufacturers companies, Krka DD ranks better than 72.7% 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. Krka DD's annualized net income for the quarter that ended in Mar. 2026 was €484 Mil. Krka DD's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €2,302 Mil. Therefore, Krka DD's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 21.01%.
The historical rank and industry rank for Krka DD's Return-on-Tangible-Equity or its related term are showing as below:
FRA:KN8'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.29 Med: 16.78 Max: 19.04
Current: 16.19
During the past 13 years, Krka DD's highest Return-on-Tangible-Equity was 19.04%. The lowest was 8.29%. And the median was 16.78%.
FRA:KN8's Return-on-Tangible-Equity is ranked better than 72.7% of 901
companies
in the Drug Manufacturers industry
Industry Median: 7.9
vs FRA:KN8: 16.19
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.
Krka DD Return-on-Tangible-Equity Related Terms
Krka DD Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Krka DD'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:KN8 vs ZTS, UTHR, VTRS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Krka DD'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.
Krka DD Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Krka DD's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Krka DD'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 21.01% mean?
Krka DD (FRA:KN8) has a Return-on-Tangible-Equity of 21.01% 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 Krka DD and its competitors. This is 25% above median its historical median of 16.78. Over the past decade, Krka DD's Return-on-Tangible-Equity has ranged from 8.29 to 19.04. According to the industry distribution chart, Krka DD ranks #246 out of 901 companies in the Drug Manufacturers industry, placing it in the top 27.3%.
Is Krka DD's Return-on-Tangible-Equity too high?
Krka DD's current Return-on-Tangible-Equity of 21.01% is 25% above median its 10-year median of 16.78. Over the past 10 years, this metric has ranged from a low of 8.29 to a high of 19.04. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.90. Krka DD's value of 21.01% is 165.9% above this industry median. Based on the distribution chart, Krka DD ranks #246 out of 901 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Krka DD has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Krka DD's Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Krka DD ranks #246 out of 901 companies for Return-on-Tangible-Equity. This puts Krka DD in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.90. Krka DD's value of 21.01% is 165.9% above this benchmark. Historically, Krka DD's own Return-on-Tangible-Equity has ranged from 8.29 to 19.04 over the past decade. While the company's 10-year median is 16.78 vs. the industry median of 7.90, Krka DD 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. Krka DD's current Return-on-Tangible-Equity of 21.01% is 165.9% 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 Krka DD 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. Krka DD's current Return-on-Tangible-Equity is 21.01%, which is 25% above median its own 10-year median of 16.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Krka DD stock overvalued right now?
Based on GuruFocus' analysis, Krka DD (FRA:KN8) is currently considered Significantly Overvalued. The stock's GF Value™ is €148.63, compared to a current price of €264.50 — trading 78% above its estimated fair value. The current Return-on-Tangible-Equity is 21.01%, which is 25% above median its 10-year median of 16.78 and 165.9% above the Drug Manufacturers industry median of 7.90. Krka DD's overall GF Score™ is 60/100 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 Krka DD (FRA:KN8), the current Return-on-Tangible-Equity is 21.01% 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 Krka DD (FRA:KN8) Overvalued in 2026?
Based on GuruFocus' analysis, Krka DD stock appears to be overvalued.
The current stock price of €264.50 is trading 78% above its estimated GF Value™ of €148.63.
GuruFocus considers Krka DD to be Significantly Overvalued.
Key valuation signals for FRA:KN8:
Return-on-Tangible-Equity: 21.01% (25% above median its 10-year median of 16.78)
GF Value™: €148.63 vs. price of €264.50 (78% above fair value)
Industry Position: 165.9% above the Drug Manufacturers median (#246 of 901)
No single metric tells the full story. See the FRA:KN8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Krka DD engages in the development, production, marketing, and sales of human health products (prescription pharmaceuticals and non-prescription products), animal health products, health resorts, and tourist services. The company's products in Prescription pharmaceuticals include Cardiovascular diseases, Infections, and Oncology; Non-prescription products include Cold and cough products, nasal products, vitamins and minerals, and hair care products; and Animal health products include Antimicrobials and disinfectants, among others. It operates across the European Union, South-East Europe, Eastern Europe region, and Others. The company derives a majority of its revenue from the European Union.
60GF Score
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