PAPA (Papa Medical) Return-on-Tangible-Equity: 93.55% (As of Mar. 2025)


What is Papa Medical Return-on-Tangible-Equity?

Papa Medical PAPA Return-on-Tangible-Equity is 93.55% as of Mar. 2025.

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. Papa Medical's annualized net income for the quarter that ended in Mar. 2025 was $3.16 Mil. Papa Medical's average shareholder tangible equity for the quarter that ended in Mar. 2025 was $3.37 Mil. Therefore, Papa Medical's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 93.55%.

The historical rank and industry rank for Papa Medical's Return-on-Tangible-Equity or its related term are showing as below:

PAPA's Return-on-Tangible-Equity is not ranked *
in the Tobacco Products industry.
Industry Median: 25.395
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Papa Medical  (NAS:PAPA) 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.


Papa Medical Return-on-Tangible-Equity Related Terms


Papa Medical Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Papa Medical'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.

Papa Medical Return-on-Tangible-Equity Chart

Papa Medical Annual Data
Trend Dec22 Dec23 Dec24
Return-on-Tangible-Equity
96.76 100.56 32.63

Papa Medical Quarterly Data
Dec22 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only 54.14 35.65 40.35 -24.21 93.55

PAPA vs : Return-on-Tangible-Equity Comparison

For the Tobacco subindustry, Papa Medical'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.


Papa Medical Return-on-Tangible-Equity vs Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Papa Medical's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Papa Medical's Return-on-Tangible-Equity falls into.



Papa Medical Return-on-Tangible-Equity Calculation

Papa Medical's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=0.862/( (2.305+2.979 )/ 2 )
=0.862/2.642
=32.63 %

Papa Medical's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=3.156/( (2.979+3.768)/ 2 )
=3.156/3.3735
=93.55 %

* 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. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 93.55% mean?
Papa Medical (PAPA) has a Return-on-Tangible-Equity of 93.55% as of Mar. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Papa Medical and its competitors.
Is Papa Medical's Return-on-Tangible-Equity too high?
Papa Medical's current Return-on-Tangible-Equity is 93.55%. The Tobacco Products industry median Return-on-Tangible-Equity is 25.40. Papa Medical's value of 93.55% is 268.4% above this industry median.
How does Papa Medical's Return-on-Tangible-Equity compare to ?
Papa Medical's Return-on-Tangible-Equity of 93.55% can be compared against companies in the Tobacco Products industry. The industry median Return-on-Tangible-Equity is 25.40. Papa Medical's value of 93.55% is 268.4% above this benchmark. 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 Tobacco Products company?
The median Return-on-Tangible-Equity among Tobacco Products companies is 25.40, based on 44 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. Papa Medical's current Return-on-Tangible-Equity of 93.55% is 268.4% 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 Papa Medical and its competitors. For the Tobacco Products industry, the median Return-on-Tangible-Equity is 25.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Papa Medical's current Return-on-Tangible-Equity is 93.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Papa Medical stock overvalued right now?
Papa Medical (PAPA) has a current Return-on-Tangible-Equity of 93.55%. The current Return-on-Tangible-Equity is 93.55% and 268.4% above the Tobacco Products industry median of 25.40. 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 Papa Medical (PAPA), the current Return-on-Tangible-Equity is 93.55% as of Mar. 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.

Papa Medical Business Description

Comparable Companies
Address 202 North California Ave, City of Industry, CA, USA, 91744
Papa Medical Inc is the first end-to-end cannabis dosing solution provider in the U.S. that possesses the medical atomization or nebulizing background and sells nebulizers. The company deeply engages in key activities in the cannabis and consuming E-vapors industry, from research and development, formulation design, e-liquid production, and e-liquid filling to e-liquid co-packing services. It is engaged in the research and development, design, commercialization, sales, marketing and distribution of branded e-cigarettes and cannabis E-vapors.