Luye Pharma GroupFRA:LUP -3.57%46 Return-on-Tangible-Equity is 8.11% as of Dec. 2025, which is 58% below its 10-year median of 19.42. GuruFocus rates FRA:LUP with a GF Score™ of 46/100 and a GF Value™ of €0.34 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 897 Drug Manufacturers companies, Luye Pharma Group ranks better than 52.62% 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. Luye Pharma Group's annualized net income for the quarter that ended in Dec. 2025 was €74.2 Mil. Luye Pharma Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €914.5 Mil. Therefore, Luye Pharma Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 8.11%.
The historical rank and industry rank for Luye Pharma Group's Return-on-Tangible-Equity or its related term are showing as below:
FRA:LUP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -6.62 Med: 19.42 Max: 50.24
Current: 8.64
During the past 13 years, Luye Pharma Group's highest Return-on-Tangible-Equity was 50.24%. The lowest was -6.62%. And the median was 19.42%.
FRA:LUP's Return-on-Tangible-Equity is ranked better than 52.62% of 897
companies
in the Drug Manufacturers industry
Industry Median: 7.9
vs FRA:LUP: 8.64
Luye Pharma Group (FRA:LUP) 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.
Luye Pharma Group Return-on-Tangible-Equity Related Terms
Luye Pharma Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Luye Pharma Group'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:LUP vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Luye Pharma Group'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.
Luye Pharma Group Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Luye Pharma Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Luye Pharma Group'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 8.11% mean?
Luye Pharma Group (FRA:LUP) has a Return-on-Tangible-Equity of 8.11% 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 Luye Pharma Group and its competitors. This is 58% below median its historical median of 19.42. According to the industry distribution chart, Luye Pharma Group ranks #425 out of 897 companies in the Drug Manufacturers industry, placing it in the top 47.4%.
Is Luye Pharma Group's Return-on-Tangible-Equity too high?
Luye Pharma Group's current Return-on-Tangible-Equity of 8.11% is 58% below median its 10-year median of 19.42. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.90. Luye Pharma Group's value of 8.11% is 2.7% above this industry median. Based on the distribution chart, Luye Pharma Group ranks #425 out of 897 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Luye Pharma Group has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Luye Pharma Group's Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Luye Pharma Group ranks #425 out of 897 companies for Return-on-Tangible-Equity. This puts Luye Pharma Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.90. Luye Pharma Group's value of 8.11% is 2.7% above this benchmark. While the company's 10-year median is 19.42 vs. the industry median of 7.90, Luye Pharma Group 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 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. Luye Pharma Group's current Return-on-Tangible-Equity of 8.11% is 2.7% 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 Luye Pharma Group 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. Luye Pharma Group's current Return-on-Tangible-Equity is 8.11%, which is 58% below median its own 10-year median of 19.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luye Pharma Group stock overvalued right now?
Based on GuruFocus' analysis, Luye Pharma Group (FRA:LUP) is currently considered Possible Value Trap. The stock's GF Value™ is €0.34, compared to a current price of €0.22 — trading 36.5% below its estimated fair value. The current Return-on-Tangible-Equity is 8.11%, which is 58% below median its 10-year median of 19.42 and 2.7% above the Drug Manufacturers industry median of 7.90. Luye Pharma Group's overall GF Score™ is 46/100 with 5 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 Luye Pharma Group (FRA:LUP), the current Return-on-Tangible-Equity is 8.11% 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 Luye Pharma Group (FRA:LUP) Overvalued in 2026?
Based on GuruFocus' analysis, Luye Pharma Group stock appears to be undervalued.
The current stock price of €0.22 is trading 36.5% below its estimated GF Value™ of €0.34.
GuruFocus considers Luye Pharma Group to be Possible Value Trap.
Key valuation signals for FRA:LUP:
Return-on-Tangible-Equity: 8.11% (58% below median its 10-year median of 19.42)
GF Value™: €0.34 vs. price of €0.22 (36.5% below fair value)
Industry Position: 2.7% above the Drug Manufacturers median (#425 of 897)
No single metric tells the full story. See the FRA:LUP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luye Pharma Group Ltd is a China-based drug manufacturer that focuses on development, production, marketing and sale of pharmaceutical products. The company develops drugs related to diagnosing and treating cancer, the cardiovascular system, the alimentary tract, and the central nervous system. The company develops drugs for world-wide use in Asia, Europe, and the United States. The Group organizes its business segments by type of products. Oncology drugs, which derives maximum revenue; Cardiovascular system drugs; Alimentary tract and metabolism drugs; Central nervous system drugs; and others. Geographically, the group derives maximum revenue from Chinese Mainland, while it also has its presence in Asia (other than the Chinese mainland), European Union, and Other countries.
46GF Score
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