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SAU:2070's Return-on-Tangible-Equity is ranked better than 63.67% of 900
companies
in the Drug Manufacturers industry
Industry Median: 7.925
vs SAU:2070: 12.34
Saudi Pharmaceutical Industries & Medical Appliances (SAU:2070) 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.
Saudi Pharmaceutical Industries & Medical Appliances Return-on-Tangible-Equity Related Terms
Saudi Pharmaceutical Industries & Medical Appliances Return-on-Tangible-Equity Historical Data
* 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.
Saudi Pharmaceutical Industries & Medical Appliances Return-on-Tangible-Equity Chart
Saudi Pharmaceutical Industries & Medical Appliances Annual Data
SAU:2070 vs ZTS, UTHR, VTRS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Saudi Pharmaceutical Industries & Medical Appliances'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.
Saudi Pharmaceutical Industries & Medical Appliances Return-on-Tangible-Equity vs Drug Manufacturers Industry
* 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. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 17.23% mean?
Saudi Pharmaceutical Industries & Medical Appliances (SAU:2070) has a Return-on-Tangible-Equity of 17.23% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Saudi Pharmaceutical Industries & Medical Appliances and its competitors. This is 573% above median its historical median of 2.56. According to the industry distribution chart, Saudi Pharmaceutical Industries & Medical Appliances ranks #327 out of 900 companies in the Drug Manufacturers industry, placing it in the top 36.3%.
Is Saudi Pharmaceutical Industries & Medical Appliances' Return-on-Tangible-Equity too high?
Saudi Pharmaceutical Industries & Medical Appliances' current Return-on-Tangible-Equity of 17.23% is 573% above median its 10-year median of 2.56. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.93. Saudi Pharmaceutical Industries & Medical Appliances' value of 17.23% is 117.4% above this industry median. Based on the distribution chart, Saudi Pharmaceutical Industries & Medical Appliances ranks #327 out of 900 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Saudi Pharmaceutical Industries & Medical Appliances has a GF Scoreâ„¢ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Saudi Pharmaceutical Industries & Medical Appliances' Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Saudi Pharmaceutical Industries & Medical Appliances ranks #327 out of 900 companies for Return-on-Tangible-Equity. This puts Saudi Pharmaceutical Industries & Medical Appliances in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.93. Saudi Pharmaceutical Industries & Medical Appliances' value of 17.23% is 117.4% above this benchmark. While the company's 10-year median is 2.56 vs. the industry median of 7.93, Saudi Pharmaceutical Industries & Medical Appliances 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 7.93, based on 900 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. Saudi Pharmaceutical Industries & Medical Appliances's current Return-on-Tangible-Equity of 17.23% is 117.4% 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 Saudi Pharmaceutical Industries & Medical Appliances and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saudi Pharmaceutical Industries & Medical Appliances's current Return-on-Tangible-Equity is 17.23%, which is 573% above median its own 10-year median of 2.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saudi Pharmaceutical Industries & Medical Appliances stock overvalued right now?
Based on GuruFocus' analysis, Saudi Pharmaceutical Industries & Medical Appliances (SAU:2070) is currently considered Fairly Valued. The stock's GF Value™ is ﷼31.24, compared to a current price of ﷼30.34 — trading 2.9% below its estimated fair value. The current Return-on-Tangible-Equity is 17.23%, which is 573% above median its 10-year median of 2.56 and 117.4% above the Drug Manufacturers industry median of 7.93. Saudi Pharmaceutical Industries & Medical Appliances' overall GF Score™ is 69/100 with 8 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 Saudi Pharmaceutical Industries & Medical Appliances (SAU:2070), the current Return-on-Tangible-Equity is 17.23% as of Mar. 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 Saudi Pharmaceutical Industries & Medical Appliances (SAU:2070) Overvalued in 2026?
Based on GuruFocus' analysis, Saudi Pharmaceutical Industries & Medical Appliances stock appears to be undervalued.
The current stock price of ï·¼30.34 is trading 2.9% below its estimated GF Value™ of ï·¼31.24.
GuruFocus considers Saudi Pharmaceutical Industries & Medical Appliances to be Fairly Valued.
Key valuation signals for SAU:2070:
Return-on-Tangible-Equity: 17.23% (573% above median its 10-year median of 2.56)
GF Value™: ï·¼31.24 vs. price of ï·¼30.34 (2.9% below fair value)
Industry Position: 117.4% above the Drug Manufacturers median (#327 of 900)
No single metric tells the full story. See the SAU:2070 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saudi Pharmaceutical Industries & Medical Appliances Business Description
Saudi Pharmaceutical Industries & Medical Appliances Corp is involved in the manufacturing of basic chemical substances and products; medicines for human use, including cosmetics; pharmaceutical production and wholesale and retail of medicines and related products; development and marketing of medicinal and pharmaceutical products; research and development in medical science activities; operating and maintaining the healthcare facilities and any investments in related industries. The segments of the company are Pharmaceutical Manufacturing, Trading and Distribution services, and Healthcare Services, out of which the company derives maximum revenue from the Pharmaceutical Manufacturing segment. Its geographical segments are Saudi Arabia, Egypt, the Middle East, Morocco, and Algeria.
69GF Score
Get the complete analysis for SAU:2070
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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