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Guobang PharmaSHSE:605507 -3.33%84 Return-on-Tangible-Equity is 8.80% as of Jun. 2026, which is 43% below its 10-year median of 15.55. GuruFocus rates SHSE:605507 with a GF Score™ of 84/100 and a GF Value™ of ¥15.69 (Fairly Valued). The stock has 4 warning signs investors should review. Among 899 Drug Manufacturers companies, Guobang Pharma ranks better than 52.84% 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. Guobang Pharma's annualized net income for the quarter that ended in Jun. 2026 was ¥723 Mil. Guobang Pharma's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ¥8,216 Mil. Therefore, Guobang Pharma's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 8.80%.
The historical rank and industry rank for Guobang Pharma's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:605507'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.77 Med: 15.55 Max: 30.28
Current: 8.77
During the past 9 years, Guobang Pharma's highest Return-on-Tangible-Equity was 30.28%. The lowest was 8.77%. And the median was 15.55%.
SHSE:605507's Return-on-Tangible-Equity is ranked better than 52.84% of 899
companies
in the Drug Manufacturers industry
Industry Median: 7.87
vs SHSE:605507: 8.77
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.
Guobang Pharma Return-on-Tangible-Equity Related Terms
Guobang Pharma Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Guobang Pharma'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:605507 vs ZTS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Guobang Pharma'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.
Guobang Pharma Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Guobang Pharma's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Guobang Pharma'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 8.80% mean?
Guobang Pharma (SHSE:605507) has a Return-on-Tangible-Equity of 8.80% 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 Guobang Pharma and its competitors. This is 43% below median its historical median of 15.55. Over the past decade, Guobang Pharma's Return-on-Tangible-Equity has ranged from 8.77 to 30.28. According to the industry distribution chart, Guobang Pharma ranks #424 out of 899 companies in the Drug Manufacturers industry, placing it in the top 47.2%.
Is Guobang Pharma's Return-on-Tangible-Equity too high?
Guobang Pharma's current Return-on-Tangible-Equity of 8.80% is 43% below median its 10-year median of 15.55. Over the past 10 years, this metric has ranged from a low of 8.77 to a high of 30.28. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.87. Guobang Pharma's value of 8.80% is 11.8% above this industry median. Based on the distribution chart, Guobang Pharma ranks #424 out of 899 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Guobang Pharma has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Guobang Pharma's Return-on-Tangible-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Guobang Pharma ranks #424 out of 899 companies for Return-on-Tangible-Equity. This puts Guobang Pharma in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.87. Guobang Pharma's value of 8.80% is 11.8% above this benchmark. Historically, Guobang Pharma's own Return-on-Tangible-Equity has ranged from 8.77 to 30.28 over the past decade. While the company's 10-year median is 15.55 vs. the industry median of 7.87, Guobang Pharma 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 7.87, 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. Guobang Pharma's current Return-on-Tangible-Equity of 8.80% is 11.8% 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 Guobang Pharma 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. Guobang Pharma's current Return-on-Tangible-Equity is 8.80%, which is 43% below median its own 10-year median of 15.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guobang Pharma stock overvalued right now?
Based on GuruFocus' analysis, Guobang Pharma (SHSE:605507) is currently considered Fairly Valued. The stock's GF Value™ is ¥15.69, compared to a current price of ¥15.37 — trading 2% below its estimated fair value. The current Return-on-Tangible-Equity is 8.80%, which is 43% below median its 10-year median of 15.55 and 11.8% above the Drug Manufacturers industry median of 7.87. Guobang Pharma's overall GF Score™ is 84/100 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 Guobang Pharma (SHSE:605507), the current Return-on-Tangible-Equity is 8.80% 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 Guobang Pharma (SHSE:605507) Overvalued in 2026?
Based on GuruFocus' analysis, Guobang Pharma stock appears to be undervalued.
The current stock price of ¥15.37 is trading 2% below its estimated GF Value™ of ¥15.69.
GuruFocus considers Guobang Pharma to be Fairly Valued.
Key valuation signals for SHSE:605507:
Return-on-Tangible-Equity: 8.80% (43% below median its 10-year median of 15.55)
GF Value™: ¥15.69 vs. price of ¥15.37 (2% below fair value)
Industry Position: 11.8% above the Drug Manufacturers median (#424 of 899)
No single metric tells the full story. See the SHSE:605507 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guobang Pharma Ltd is engaged in the research and development, production and sales of related products in the field of medicine and animal health products.
84GF Score
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