Labat AfricaJSE:LAB Return-on-Tangible-Equity is 56.13% as of Nov. 2025, which is 27% below its 10-year median of 77.15. The stock has 5 warning signs investors should review. Among 899 Drug Manufacturers companies, Labat Africa ranks better than 93.66% 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. Labat Africa's annualized net income for the quarter that ended in Nov. 2025 was R89.0 Mil. Labat Africa's average shareholder tangible equity for the quarter that ended in Nov. 2025 was R158.6 Mil. Therefore, Labat Africa's annualized Return-on-Tangible-Equity for the quarter that ended in Nov. 2025 was 56.13%.
The historical rank and industry rank for Labat Africa's Return-on-Tangible-Equity or its related term are showing as below:
JSE:LAB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 53.2 Med: 77.15 Max: 237.31
Current: 171.39
During the past 13 years, Labat Africa's highest Return-on-Tangible-Equity was 237.31%. The lowest was 53.20%. And the median was 77.15%.
JSE:LAB's Return-on-Tangible-Equity is ranked better than 93.66% of 899
companies
in the Drug Manufacturers industry
Industry Median: 7.68
vs JSE:LAB: 171.39
Labat Africa (JSE:LAB) 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.
Labat Africa Return-on-Tangible-Equity Related Terms
Labat Africa Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Labat Africa'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.
JSE:LAB vs ZTS, UTHR, VTRS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa'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.
Labat Africa Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Labat Africa'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 (Nov. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 56.13% mean?
Labat Africa (JSE:LAB) has a Return-on-Tangible-Equity of 56.13% as of Nov. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Labat Africa and its competitors. This is 27% below median its historical median of 77.15. Over the past decade, Labat Africa's Return-on-Tangible-Equity has ranged from 53.20 to 237.31. According to the industry distribution chart, Labat Africa ranks #57 out of 899 companies in the Drug Manufacturers industry, placing it in the top 6.3%.
Is Labat Africa's Return-on-Tangible-Equity too high?
Labat Africa's current Return-on-Tangible-Equity of 56.13% is 27% below median its 10-year median of 77.15. Over the past 10 years, this metric has ranged from a low of 53.20 to a high of 237.31. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.68. Labat Africa's value of 56.13% is 630.9% above this industry median. Based on the distribution chart, Labat Africa ranks #57 out of 899 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers.
How does Labat Africa's Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #57 out of 899 companies for Return-on-Tangible-Equity. This places Labat Africa in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.68. Labat Africa's value of 56.13% is 630.9% above this benchmark. Historically, Labat Africa's own Return-on-Tangible-Equity has ranged from 53.20 to 237.31 over the past decade. While the company's 10-year median is 77.15 vs. the industry median of 7.68, Labat Africa 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 7.68, based on 899 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. Labat Africa's current Return-on-Tangible-Equity of 56.13% is 630.9% 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 Labat Africa and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labat Africa's current Return-on-Tangible-Equity is 56.13%, which is 27% below median its own 10-year median of 77.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.22, compared to a current price of R0.05 — trading 77.3% below its estimated fair value. The current Return-on-Tangible-Equity is 56.13%, which is 27% below median its 10-year median of 77.15 and 630.9% above the Drug Manufacturers industry median of 7.68. 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 Labat Africa (JSE:LAB), the current Return-on-Tangible-Equity is 56.13% as of Nov. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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