Otofarma SpAMIL:OTO -0.71%16 Return-on-Tangible-Equity is 24.28% as of Dec. 2024, which is 4% above its 10-year median of 23.30. GuruFocus rates MIL:OTO with a GF Score™ of 16/100. The stock has 1 warning sign investors should review. Among 758 Medical Devices & Instruments companies, Otofarma SpA ranks better than 85.88% 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. Otofarma SpA's annualized net income for the quarter that ended in Dec. 2024 was €0.70 Mil. Otofarma SpA's average shareholder tangible equity for the quarter that ended in Dec. 2024 was €2.87 Mil. Therefore, Otofarma SpA's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2024 was 24.28%.
The historical rank and industry rank for Otofarma SpA's Return-on-Tangible-Equity or its related term are showing as below:
MIL:OTO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 22.32 Med: 23.3 Max: 24.28
Current: 24.28
During the past 2 years, Otofarma SpA's highest Return-on-Tangible-Equity was 24.28%. The lowest was 22.32%. And the median was 23.30%.
MIL:OTO's Return-on-Tangible-Equity is ranked better than 85.88% of 758
companies
in the Medical Devices & Instruments industry
Industry Median: 4.08
vs MIL:OTO: 24.28
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.
Otofarma SpA Return-on-Tangible-Equity Related Terms
Otofarma SpA Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Otofarma SpA'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.
Otofarma SpA Return-on-Tangible-Equity Chart
Otofarma SpA Annual Data
Trend
Dec23
Dec24
Return-on-Tangible-Equity
22.32
24.28
Otofarma SpA Semi-Annual Data
Dec23
Dec24
Return-on-Tangible-Equity
22.32
24.28
MIL:OTO vs ABT, SYK, MDT: Return-on-Tangible-Equity Comparison
For the Medical Devices subindustry, Otofarma SpA'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.
Otofarma SpA Return-on-Tangible-Equity vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Otofarma SpA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Otofarma SpA'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 one times the annual (Dec. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 24.28% mean?
Otofarma SpA (MIL:OTO) has a Return-on-Tangible-Equity of 24.28% as of Dec. 2024. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Otofarma SpA and its competitors. This is near median its historical median of 23.30. Over the past decade, Otofarma SpA's Return-on-Tangible-Equity has ranged from 22.32 to 24.28. According to the industry distribution chart, Otofarma SpA ranks #107 out of 758 companies in the Medical Devices & Instruments industry, placing it in the top 14.1%.
Is Otofarma SpA's Return-on-Tangible-Equity too high?
Otofarma SpA's current Return-on-Tangible-Equity of 24.28% is near median its 10-year median of 23.30. Over the past 10 years, this metric has ranged from a low of 22.32 to a high of 24.28. The Medical Devices & Instruments industry median Return-on-Tangible-Equity is 4.08. Otofarma SpA's value of 24.28% is 495.1% above this industry median. Based on the distribution chart, Otofarma SpA ranks #107 out of 758 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Otofarma SpA has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Otofarma SpA's Return-on-Tangible-Equity compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Otofarma SpA ranks #107 out of 758 companies for Return-on-Tangible-Equity. This places Otofarma SpA in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.08. Otofarma SpA's value of 24.28% is 495.1% above this benchmark. Historically, Otofarma SpA's own Return-on-Tangible-Equity has ranged from 22.32 to 24.28 over the past decade. While the company's 10-year median is 23.30 vs. the industry median of 4.08, Otofarma SpA 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 Medical Devices & Instruments company?
The median Return-on-Tangible-Equity among Medical Devices & Instruments companies is 4.08, based on 758 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. Otofarma SpA's current Return-on-Tangible-Equity of 24.28% is 495.1% 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 Otofarma SpA and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Equity is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otofarma SpA's current Return-on-Tangible-Equity is 24.28%, which is near median its own 10-year median of 23.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otofarma SpA stock overvalued right now?
Otofarma SpA (MIL:OTO) has a current Return-on-Tangible-Equity of 24.28%. The current Return-on-Tangible-Equity is 24.28%, which is near median its 10-year median of 23.30 and 495.1% above the Medical Devices & Instruments industry median of 4.08. Otofarma SpA's overall GF Score™ is 16/100 with 1 warning sign 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 Otofarma SpA (MIL:OTO), the current Return-on-Tangible-Equity is 24.28% as of Dec. 2024. 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.
Otofarma SpA is engaged in the construction and production of hearing aids, is constantly growing in the audiological field to provide adequate responses to every type of hearing aid need to its customers who require the possible personalized application of custom-made hearing aids. It provides otoacoustic medical devices and TELEMEDICINE services exclusively in affiliated pharmacies, possessing a portfolio of Instrumental IT patents.
16GF Score
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