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Middle East Pharmaceutical Industries CoSAU:4016 -0.33%22 Return-on-Tangible-Equity is 30.41% as of Mar. 2026, which is 10% above its 10-year median of 27.67. GuruFocus rates SAU:4016 with a GF Score™ of 22/100. The stock has 3 warning signs investors should review. Among 900 Drug Manufacturers companies, Middle East Pharmaceutical Industries Co ranks better than 87.78% on this metric.
SAU:4016'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 25.36 Med: 27.67 Max: 30.98
Current: 30.98
During the past 3 years, Middle East Pharmaceutical Industries Co's highest Return-on-Tangible-Equity was 30.98%. The lowest was 25.36%. And the median was 27.67%.
SAU:4016's Return-on-Tangible-Equity is ranked better than 87.78% of 900
companies
in the Drug Manufacturers industry
Industry Median: 7.925
vs SAU:4016: 30.98
Middle East Pharmaceutical Industries Co (SAU:4016) 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.
Middle East Pharmaceutical Industries Co Return-on-Tangible-Equity Related Terms
Middle East Pharmaceutical Industries Co 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.
Middle East Pharmaceutical Industries Co Return-on-Tangible-Equity Chart
Middle East Pharmaceutical Industries Co Annual Data
Trend
Dec23
Dec24
Dec25
Return-on-Tangible-Equity
25.36
27.67
28.89
Middle East Pharmaceutical Industries Co Quarterly Data
SAU:4016 vs ZTS, UTHR, VTRS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Middle East Pharmaceutical Industries Co'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.
Middle East Pharmaceutical Industries Co Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Middle East Pharmaceutical Industries Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Middle East Pharmaceutical Industries Co'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 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 30.41% mean?
Middle East Pharmaceutical Industries Co (SAU:4016) has a Return-on-Tangible-Equity of 30.41% 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 Middle East Pharmaceutical Industries Co and its competitors. This is 10% above median its historical median of 27.67. Over the past decade, Middle East Pharmaceutical Industries Co's Return-on-Tangible-Equity has ranged from 25.36 to 30.98. According to the industry distribution chart, Middle East Pharmaceutical Industries Co ranks #110 out of 900 companies in the Drug Manufacturers industry, placing it in the top 12.2%.
Is Middle East Pharmaceutical Industries Co's Return-on-Tangible-Equity too high?
Middle East Pharmaceutical Industries Co's current Return-on-Tangible-Equity of 30.41% is 10% above median its 10-year median of 27.67. Over the past 10 years, this metric has ranged from a low of 25.36 to a high of 30.98. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.93. Middle East Pharmaceutical Industries Co's value of 30.41% is 283.7% above this industry median. Based on the distribution chart, Middle East Pharmaceutical Industries Co ranks #110 out of 900 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Middle East Pharmaceutical Industries Co has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Middle East Pharmaceutical Industries Co's Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Middle East Pharmaceutical Industries Co ranks #110 out of 900 companies for Return-on-Tangible-Equity. This places Middle East Pharmaceutical Industries Co in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.93. Middle East Pharmaceutical Industries Co's value of 30.41% is 283.7% above this benchmark. Historically, Middle East Pharmaceutical Industries Co's own Return-on-Tangible-Equity has ranged from 25.36 to 30.98 over the past decade. While the company's 10-year median is 27.67 vs. the industry median of 7.93, Middle East Pharmaceutical Industries Co 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. Middle East Pharmaceutical Industries Co's current Return-on-Tangible-Equity of 30.41% is 283.7% 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 Middle East Pharmaceutical Industries Co 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. Middle East Pharmaceutical Industries Co's current Return-on-Tangible-Equity is 30.41%, which is 10% above median its own 10-year median of 27.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Middle East Pharmaceutical Industries Co stock overvalued right now?
Middle East Pharmaceutical Industries Co (SAU:4016) has a current Return-on-Tangible-Equity of 30.41%. The current Return-on-Tangible-Equity is 30.41%, which is 10% above median its 10-year median of 27.67 and 283.7% above the Drug Manufacturers industry median of 7.93. Middle East Pharmaceutical Industries Co's overall GF Score™ is 22/100 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 Middle East Pharmaceutical Industries Co (SAU:4016), the current Return-on-Tangible-Equity is 30.41% 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.
Middle East Pharmaceutical Industries Co Business Description
Middle East Pharmaceutical Industries Co is a holding company engaged in manufacturing medicines, medicated and non-medicated creams and gels. The company operates in Private, Public, and Export segments. Geographically, it generates the majority of its revenue from Saudi Arabia.
22GF Score
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