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China National MedicinesSHSE:600511 -0.04%90 Return-on-Tangible-Equity is 8.81% as of Jun. 2026, which is 42% below its 10-year median of 15.15. GuruFocus rates SHSE:600511 with a GF Score™ of 90/100 and a GF Value™ of ¥32.09 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 113 Medical Distribution companies, China National Medicines ranks better than 61.06% 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. China National Medicines's annualized net income for the quarter that ended in Jun. 2026 was ¥1,622 Mil. China National Medicines's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ¥18,410 Mil. Therefore, China National Medicines's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 8.81%.
The historical rank and industry rank for China National Medicines's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:600511'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.81 Med: 15.15 Max: 23.72
Current: 10.81
During the past 13 years, China National Medicines's highest Return-on-Tangible-Equity was 23.72%. The lowest was 10.81%. And the median was 15.15%.
SHSE:600511's Return-on-Tangible-Equity is ranked better than 61.06% of 113
companies
in the Medical Distribution industry
Industry Median: 8.2
vs SHSE:600511: 10.81
China National Medicines (SHSE:600511) 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.
China National Medicines Return-on-Tangible-Equity Related Terms
China National Medicines Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for China National Medicines'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.
China National Medicines Return-on-Tangible-Equity Chart
SHSE:600511 vs MCK, COR, CAH: Return-on-Tangible-Equity Comparison
For the Medical Distribution subindustry, China National Medicines'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.
China National Medicines Return-on-Tangible-Equity vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, China National Medicines's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where China National Medicines'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 8.81% mean?
China National Medicines (SHSE:600511) has a Return-on-Tangible-Equity of 8.81% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on China National Medicines and its competitors. This is 42% below median its historical median of 15.15. Over the past decade, China National Medicines' Return-on-Tangible-Equity has ranged from 10.81 to 23.72. According to the industry distribution chart, China National Medicines ranks #44 out of 113 companies in the Medical Distribution industry, placing it in the top 38.9%.
Is China National Medicines' Return-on-Tangible-Equity too high?
China National Medicines' current Return-on-Tangible-Equity of 8.81% is 42% below median its 10-year median of 15.15. Over the past 10 years, this metric has ranged from a low of 10.81 to a high of 23.72. The Medical Distribution industry median Return-on-Tangible-Equity is 8.20. China National Medicines' value of 8.81% is 7.4% above this industry median. Based on the distribution chart, China National Medicines ranks #44 out of 113 companies in the Medical Distribution industry, which is above the industry midpoint. Overall, China National Medicines has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China National Medicines' Return-on-Tangible-Equity compare to MCK and COR?
According to the Medical Distribution industry distribution chart, China National Medicines ranks #44 out of 113 companies for Return-on-Tangible-Equity. This puts China National Medicines in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.20. China National Medicines' value of 8.81% is 7.4% above this benchmark. Historically, China National Medicines' own Return-on-Tangible-Equity has ranged from 10.81 to 23.72 over the past decade. While the company's 10-year median is 15.15 vs. the industry median of 8.20, China National Medicines 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 Distribution company?
The median Return-on-Tangible-Equity among Medical Distribution companies is 8.20, based on 113 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. China National Medicines's current Return-on-Tangible-Equity of 8.81% is 7.4% 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 China National Medicines and its competitors. For the Medical Distribution industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China National Medicines's current Return-on-Tangible-Equity is 8.81%, which is 42% below median its own 10-year median of 15.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China National Medicines stock overvalued right now?
Based on GuruFocus' analysis, China National Medicines (SHSE:600511) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥32.09, compared to a current price of ¥26.77 — trading 16.6% below its estimated fair value. The current Return-on-Tangible-Equity is 8.81%, which is 42% below median its 10-year median of 15.15 and 7.4% above the Medical Distribution industry median of 8.20. China National Medicines' overall GF Score™ is 90/100 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 China National Medicines (SHSE:600511), the current Return-on-Tangible-Equity is 8.81% as of Jun. 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 China National Medicines (SHSE:600511) Overvalued in 2026?
Based on GuruFocus' analysis, China National Medicines stock appears to be undervalued.
The current stock price of ¥26.77 is trading 16.6% below its estimated GF Value™ of ¥32.09.
GuruFocus considers China National Medicines to be Modestly Undervalued.
Key valuation signals for SHSE:600511:
Return-on-Tangible-Equity: 8.81% (42% below median its 10-year median of 15.15)
GF Value™: ¥32.09 vs. price of ¥26.77 (16.6% below fair value)
Industry Position: 7.4% above the Medical Distribution median (#44 of 113)
No single metric tells the full story. See the SHSE:600511 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China National Medicines Corp Ltd focuses on producing special drugs and high-end prescription drugs. Its main goal is to provide customers with professional medical services. The company conducts its operations through two primary segments. The Commercial segment is mainly engaged in the sale of pharmaceuticals. The Others segment focuses on pharmaceutical manufacturing and logistics operations.
90GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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