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SHSE:603707's Return-on-Tangible-Equity is ranked better than 58.93% of 901
companies
in the Drug Manufacturers industry
Industry Median: 7.87
vs SHSE:603707: 10.62
Nanjing King-Friend Biochemical Pharmaceutical Co (SHSE:603707) 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.
Nanjing King-Friend Biochemical Pharmaceutical Co Return-on-Tangible-Equity Related Terms
Nanjing King-Friend Biochemical Pharmaceutical 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.
Nanjing King-Friend Biochemical Pharmaceutical Co Return-on-Tangible-Equity Chart
Nanjing King-Friend Biochemical Pharmaceutical Co Annual Data
SHSE:603707 vs ZTS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Nanjing King-Friend Biochemical Pharmaceutical 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.
Nanjing King-Friend Biochemical Pharmaceutical Co 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 6.33% mean?
Nanjing King-Friend Biochemical Pharmaceutical Co (SHSE:603707) has a Return-on-Tangible-Equity of 6.33% 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 Nanjing King-Friend Biochemical Pharmaceutical Co and its competitors. This is 68% below median its historical median of 19.76. According to the industry distribution chart, Nanjing King-Friend Biochemical Pharmaceutical Co ranks #370 out of 901 companies in the Drug Manufacturers industry, placing it in the top 41.1%.
Is Nanjing King-Friend Biochemical Pharmaceutical Co's Return-on-Tangible-Equity too high?
Nanjing King-Friend Biochemical Pharmaceutical Co's current Return-on-Tangible-Equity of 6.33% is 68% below median its 10-year median of 19.76. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.87. Nanjing King-Friend Biochemical Pharmaceutical Co's value of 6.33% is 19.6% below this industry median. Based on the distribution chart, Nanjing King-Friend Biochemical Pharmaceutical Co ranks #370 out of 901 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Nanjing King-Friend Biochemical Pharmaceutical Co has a GF Scoreâ„¢ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nanjing King-Friend Biochemical Pharmaceutical Co's Return-on-Tangible-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Nanjing King-Friend Biochemical Pharmaceutical Co ranks #370 out of 901 companies for Return-on-Tangible-Equity. This puts Nanjing King-Friend Biochemical Pharmaceutical Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.87. Nanjing King-Friend Biochemical Pharmaceutical Co's value of 6.33% is 19.6% below this benchmark. While the company's 10-year median is 19.76 vs. the industry median of 7.87, Nanjing King-Friend Biochemical Pharmaceutical Co has consistently been below 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 7.87, based on 901 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. Nanjing King-Friend Biochemical Pharmaceutical Co's current Return-on-Tangible-Equity of 6.33% is 19.6% below 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 Nanjing King-Friend Biochemical Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nanjing King-Friend Biochemical Pharmaceutical Co's current Return-on-Tangible-Equity is 6.33%, which is 68% below median its own 10-year median of 19.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nanjing King-Friend Biochemical Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Nanjing King-Friend Biochemical Pharmaceutical Co (SHSE:603707) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥12.71, compared to a current price of ¥8.18 — trading 35.6% below its estimated fair value. The current Return-on-Tangible-Equity is 6.33%, which is 68% below median its 10-year median of 19.76 and 19.6% below the Drug Manufacturers industry median of 7.87. Nanjing King-Friend Biochemical Pharmaceutical Co's overall GF Score™ is 71/100 with 4 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 Nanjing King-Friend Biochemical Pharmaceutical Co (SHSE:603707), the current Return-on-Tangible-Equity is 6.33% 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 Nanjing King-Friend Biochemical Pharmaceutical Co (SHSE:603707) Overvalued in 2026?
Based on GuruFocus' analysis, Nanjing King-Friend Biochemical Pharmaceutical Co stock appears to be undervalued.
The current stock price of Â¥8.18 is trading 35.6% below its estimated GF Value™ of Â¥12.71.
GuruFocus considers Nanjing King-Friend Biochemical Pharmaceutical Co to be Significantly Undervalued.
Key valuation signals for SHSE:603707:
Return-on-Tangible-Equity: 6.33% (68% below median its 10-year median of 19.76)
GF Value™: Â¥12.71 vs. price of Â¥8.18 (35.6% below fair value)
Industry Position: 19.6% below the Drug Manufacturers median (#370 of 901)
No single metric tells the full story. See the SHSE:603707 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nanjing King-Friend Biochemical Pharmaceutical Co Ltd is a China-based company engaged in the research and development, import and export of medicines and health products. The main products of the company are Heparin sodium and low molecular weight heparin. Geographically, the business activities are carried out through China and it exports the product mainly to the European and American countries.
71GF Score
Get the complete analysis for SHSE:603707
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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