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GemPharmatech CoSHSE:688046 -2.53%90 Return-on-Tangible-Equity is 8.65% as of Mar. 2026, which is 15% below its 10-year median of 10.15. GuruFocus rates SHSE:688046 with a GF Score™ of 90/100 and a GF Value™ of ¥19.68 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,200 Biotechnology companies, GemPharmatech Co ranks better than 84.25% 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. GemPharmatech Co's annualized net income for the quarter that ended in Mar. 2026 was ¥188.4 Mil. GemPharmatech Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥2,177.6 Mil. Therefore, GemPharmatech Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.65%.
The historical rank and industry rank for GemPharmatech Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:688046'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -22.16 Med: 10.15 Max: 28.29
Current: 7.46
During the past 8 years, GemPharmatech Co's highest Return-on-Tangible-Equity was 28.29%. The lowest was -22.16%. And the median was 10.15%.
SHSE:688046's Return-on-Tangible-Equity is ranked better than 84.25% of 1200
companies
in the Biotechnology industry
Industry Median: -42.305
vs SHSE:688046: 7.46
GemPharmatech Co (SHSE:688046) 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.
GemPharmatech Co Return-on-Tangible-Equity Related Terms
GemPharmatech Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for GemPharmatech Co'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:688046 vs VRTX, REGN, ALNY: Return-on-Tangible-Equity Comparison
For the Biotechnology subindustry, GemPharmatech 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.
GemPharmatech Co Return-on-Tangible-Equity vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, GemPharmatech Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where GemPharmatech 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 8.65% mean?
GemPharmatech Co (SHSE:688046) has a Return-on-Tangible-Equity of 8.65% 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 GemPharmatech Co and its competitors. This is 15% below median its historical median of 10.15. According to the industry distribution chart, GemPharmatech Co ranks #189 out of 1200 companies in the Biotechnology industry, placing it in the top 15.7%.
Is GemPharmatech Co's Return-on-Tangible-Equity too high?
GemPharmatech Co's current Return-on-Tangible-Equity of 8.65% is 15% below median its 10-year median of 10.15. Based on the distribution chart, GemPharmatech Co ranks #189 out of 1200 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, GemPharmatech Co has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GemPharmatech Co's Return-on-Tangible-Equity compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, GemPharmatech Co ranks #189 out of 1200 companies for Return-on-Tangible-Equity. This places GemPharmatech Co in the top 16% of its industry — outperforming the majority of peers. 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 Biotechnology company?
A good Return-on-Tangible-Equity depends on the Biotechnology industry context. 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 GemPharmatech Co and its competitors. GemPharmatech Co's current Return-on-Tangible-Equity is 8.65%, which is 15% below median its own 10-year median of 10.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GemPharmatech Co stock overvalued right now?
Based on GuruFocus' analysis, GemPharmatech Co (SHSE:688046) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥19.68, compared to a current price of ¥26.20 — trading 33.1% above its estimated fair value. The current Return-on-Tangible-Equity is 8.65%, which is 15% below median its 10-year median of 10.15. GemPharmatech Co's overall GF Score™ is 90/100 with 8 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 GemPharmatech Co (SHSE:688046), the current Return-on-Tangible-Equity is 8.65% 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 GemPharmatech Co (SHSE:688046) Overvalued in 2026?
Based on GuruFocus' analysis, GemPharmatech Co stock appears to be overvalued.
The current stock price of ¥26.20 is trading 33.1% above its estimated GF Value™ of ¥19.68.
GuruFocus considers GemPharmatech Co to be Significantly Overvalued.
Key valuation signals for SHSE:688046:
Return-on-Tangible-Equity: 8.65% (15% below median its 10-year median of 10.15)
GF Value™: ¥19.68 vs. price of ¥26.20 (33.1% above fair value)
No single metric tells the full story. See the SHSE:688046 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GemPharmatech Co Ltd is a provider of genetically engineered mouse models and services to preclinical research and development communities. The company develops mouse models with independent intellectual property rights based on technical platforms such as gene editing, stem cells, phenotypic analysis, efficacy analysis, and sterile animals, and carries out one-stop services such as model customization, customized breeding, and functional efficacy analysis.
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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