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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. KPC Pharmaceuticals's annualized net income for the quarter that ended in Mar. 2026 was ¥-567 Mil. KPC Pharmaceuticals's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥3,161 Mil. Therefore, KPC Pharmaceuticals's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -17.94%.
The historical rank and industry rank for KPC Pharmaceuticals's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:600422'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.72 Med: 12.46 Max: 17.23
Current: 3.72
During the past 13 years, KPC Pharmaceuticals's highest Return-on-Tangible-Equity was 17.23%. The lowest was 3.72%. And the median was 12.46%.
SHSE:600422's Return-on-Tangible-Equity is ranked worse than 62.63% of 899
companies
in the Drug Manufacturers industry
Industry Median: 7.9
vs SHSE:600422: 3.72
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.
KPC Pharmaceuticals Return-on-Tangible-Equity Related Terms
KPC Pharmaceuticals Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for KPC Pharmaceuticals'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.
SHSE:600422 vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, KPC Pharmaceuticals'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.
KPC Pharmaceuticals Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, KPC Pharmaceuticals's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where KPC Pharmaceuticals'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 -17.94% mean?
KPC Pharmaceuticals (SHSE:600422) has a Return-on-Tangible-Equity of -17.94% 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 KPC Pharmaceuticals and its competitors. Over the past decade, KPC Pharmaceuticals' Return-on-Tangible-Equity has ranged from 3.72 to 17.23. According to the industry distribution chart, KPC Pharmaceuticals ranks #563 out of 899 companies in the Drug Manufacturers industry, placing it in the top 62.6%.
Is KPC Pharmaceuticals' Return-on-Tangible-Equity too high?
KPC Pharmaceuticals' current Return-on-Tangible-Equity is -17.94%. Over the past 10 years, this metric has ranged from a low of 3.72 to a high of 17.23. Based on the distribution chart, KPC Pharmaceuticals ranks #563 out of 899 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, KPC Pharmaceuticals has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does KPC Pharmaceuticals' Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, KPC Pharmaceuticals ranks #563 out of 899 companies for Return-on-Tangible-Equity. This places KPC Pharmaceuticals in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.90. Historically, KPC Pharmaceuticals' own Return-on-Tangible-Equity has ranged from 3.72 to 17.23 over the past decade. 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 7.90, 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. 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 KPC Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KPC Pharmaceuticals's current Return-on-Tangible-Equity is -17.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KPC Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, KPC Pharmaceuticals (SHSE:600422) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥11.99, compared to a current price of ¥9.08 — trading 24.3% below its estimated fair value. The current Return-on-Tangible-Equity is -17.94%. KPC Pharmaceuticals' overall GF Score™ is 66/100 with 7 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 KPC Pharmaceuticals (SHSE:600422), the current Return-on-Tangible-Equity is -17.94% 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 KPC Pharmaceuticals (SHSE:600422) Overvalued in 2026?
Based on GuruFocus' analysis, KPC Pharmaceuticals stock appears to be undervalued.
The current stock price of ¥9.08 is trading 24.3% below its estimated GF Value™ of ¥11.99.
GuruFocus considers KPC Pharmaceuticals to be Modestly Undervalued.
Key valuation signals for SHSE:600422:
Return-on-Tangible-Equity: -17.94%
GF Value™: ¥11.99 vs. price of ¥9.08 (24.3% below fair value)
No single metric tells the full story. See the SHSE:600422 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KPC Pharmaceuticals Inc is a pharmaceutical company which focused on innovative natural botanical drugs in China. Its business scope covers traditional Chinese medicine, chemical medicine, and medicinal circulation. Its products include Panax notoginseng, gastrodine, artemether, and special botanical drugs.
66GF Score
Get the complete analysis for SHSE:600422
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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