Dis-Chem PharmaciesJSE:DCP +0.34%85 Return-on-Tangible-Equity is 17.34% as of Feb. 2026, which is 56% below its 10-year median of 39.18. GuruFocus rates JSE:DCP with a GF Score™ of 85/100 and a GF Value™ of R38.17 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 579 Healthcare Providers & Services companies, Dis-Chem Pharmacies ranks better than 72.71% 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. Dis-Chem Pharmacies's annualized net income for the quarter that ended in Feb. 2026 was R692 Mil. Dis-Chem Pharmacies's average shareholder tangible equity for the quarter that ended in Feb. 2026 was R3,987 Mil. Therefore, Dis-Chem Pharmacies's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 17.34%.
The historical rank and industry rank for Dis-Chem Pharmacies's Return-on-Tangible-Equity or its related term are showing as below:
JSE:DCP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 25 Med: 39.18 Max: 69.87
Current: 25
During the past 13 years, Dis-Chem Pharmacies's highest Return-on-Tangible-Equity was 69.87%. The lowest was 25.00%. And the median was 39.18%.
JSE:DCP's Return-on-Tangible-Equity is ranked better than 72.71% of 579
companies
in the Healthcare Providers & Services industry
Industry Median: 10.21
vs JSE:DCP: 25.00
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.
Dis-Chem Pharmacies Return-on-Tangible-Equity Related Terms
Dis-Chem Pharmacies Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Dis-Chem Pharmacies'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.
For the Pharmaceutical Retailers subindustry, Dis-Chem Pharmacies'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.
Dis-Chem Pharmacies Return-on-Tangible-Equity vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Dis-Chem Pharmacies's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Dis-Chem Pharmacies'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 (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 17.34% mean?
Dis-Chem Pharmacies (JSE:DCP) has a Return-on-Tangible-Equity of 17.34% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Dis-Chem Pharmacies and its competitors. This is 56% below median its historical median of 39.18. Over the past decade, Dis-Chem Pharmacies' Return-on-Tangible-Equity has ranged from 25.00 to 69.87. According to the industry distribution chart, Dis-Chem Pharmacies ranks #158 out of 579 companies in the Healthcare Providers & Services industry, placing it in the top 27.3%.
Is Dis-Chem Pharmacies' Return-on-Tangible-Equity too high?
Dis-Chem Pharmacies' current Return-on-Tangible-Equity of 17.34% is 56% below median its 10-year median of 39.18. Over the past 10 years, this metric has ranged from a low of 25.00 to a high of 69.87. The Healthcare Providers & Services industry median Return-on-Tangible-Equity is 10.21. Dis-Chem Pharmacies' value of 17.34% is 69.8% above this industry median. Based on the distribution chart, Dis-Chem Pharmacies ranks #158 out of 579 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Dis-Chem Pharmacies has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dis-Chem Pharmacies' Return-on-Tangible-Equity compare to competitors?
According to the Healthcare Providers & Services industry distribution chart, Dis-Chem Pharmacies ranks #158 out of 579 companies for Return-on-Tangible-Equity. This puts Dis-Chem Pharmacies in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.21. Dis-Chem Pharmacies' value of 17.34% is 69.8% above this benchmark. Historically, Dis-Chem Pharmacies' own Return-on-Tangible-Equity has ranged from 25.00 to 69.87 over the past decade. While the company's 10-year median is 39.18 vs. the industry median of 10.21, Dis-Chem Pharmacies 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 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. Dis-Chem Pharmacies's current Return-on-Tangible-Equity of 17.34% is 69.8% 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 Dis-Chem Pharmacies 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. Dis-Chem Pharmacies's current Return-on-Tangible-Equity is 17.34%, which is 56% below median its own 10-year median of 39.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dis-Chem Pharmacies stock overvalued right now?
Based on GuruFocus' analysis, Dis-Chem Pharmacies (JSE:DCP) is currently considered Modestly Undervalued. The stock's GF Value™ is R38.17, compared to a current price of R32.60 — trading 14.6% below its estimated fair value. The current Return-on-Tangible-Equity is 17.34%, which is 56% below median its 10-year median of 39.18 and 69.8% above the Healthcare Providers & Services industry median of 10.21. Dis-Chem Pharmacies' overall GF Score™ is 85/100 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 Dis-Chem Pharmacies (JSE:DCP), the current Return-on-Tangible-Equity is 17.34% as of Feb. 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 Dis-Chem Pharmacies (JSE:DCP) Overvalued in 2026?
Based on GuruFocus' analysis, Dis-Chem Pharmacies stock appears to be undervalued.
The current stock price of R32.60 is trading 14.6% below its estimated GF Value™ of R38.17.
GuruFocus considers Dis-Chem Pharmacies to be Modestly Undervalued.
Key valuation signals for JSE:DCP:
Return-on-Tangible-Equity: 17.34% (56% below median its 10-year median of 39.18)
GF Value™: R38.17 vs. price of R32.60 (14.6% below fair value)
Industry Position: 69.8% above the Healthcare Providers & Services median (#158 of 579)
No single metric tells the full story. See the JSE:DCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dis-Chem Pharmacies Ltd is a pharmaceutical company based in South Africa. Its product portfolio includes personal care products, beauty products, healthcare and nutrition products, and dispensary and baby care products. The operating segments of the group are Retail and Wholesale. It derives maximum revenue from the Retail segment, which includes company stores, retailers of pharmaceuticals and a variety of health and beauty products, as well as pharma-logistic services and oncology and retailers of pharmaceutical products. The Wholesale segment consists of the CJ wholesale and company distribution businesses, wholesalers of pharmaceuticals, and a variety of health and beauty products. Geographically, the group carries out its business operations principally in South Africa.
85GF Score
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