Otsuka Holdings CoSTU:OS1 -2.42%87 Return-on-Tangible-Equity is 19.80% as of Mar. 2026, which is 84% above its 10-year median of 10.75. GuruFocus rates STU:OS1 with a GF Score™ of 87/100 and a GF Value™ of €44.74 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 895 Drug Manufacturers companies, Otsuka Holdings Co ranks better than 80.22% 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. Otsuka Holdings Co's annualized net income for the quarter that ended in Mar. 2026 was €2,144 Mil. Otsuka Holdings Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €10,829 Mil. Therefore, Otsuka Holdings Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 19.80%.
The historical rank and industry rank for Otsuka Holdings Co's Return-on-Tangible-Equity or its related term are showing as below:
STU:OS1'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.15 Med: 10.75 Max: 21.03
Current: 20.66
During the past 13 years, Otsuka Holdings Co's highest Return-on-Tangible-Equity was 21.03%. The lowest was 8.15%. And the median was 10.75%.
STU:OS1's Return-on-Tangible-Equity is ranked better than 80.22% of 895
companies
in the Drug Manufacturers industry
Industry Median: 7.89
vs STU:OS1: 20.66
Otsuka Holdings Co (STU:OS1) 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.
Otsuka Holdings Co Return-on-Tangible-Equity Related Terms
Otsuka Holdings Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Otsuka Holdings 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.
Otsuka Holdings Co Return-on-Tangible-Equity Chart
STU:OS1 vs LLY, JNJ, ABBV: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - General subindustry, Otsuka Holdings 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.
Otsuka Holdings Co Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Otsuka Holdings Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Otsuka Holdings 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 19.80% mean?
Otsuka Holdings Co (STU:OS1) has a Return-on-Tangible-Equity of 19.80% 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 Otsuka Holdings Co and its competitors. This is 84% above median its historical median of 10.75. Over the past decade, Otsuka Holdings Co's Return-on-Tangible-Equity has ranged from 8.15 to 21.03. According to the industry distribution chart, Otsuka Holdings Co ranks #177 out of 895 companies in the Drug Manufacturers industry, placing it in the top 19.8%.
Is Otsuka Holdings Co's Return-on-Tangible-Equity too high?
Otsuka Holdings Co's current Return-on-Tangible-Equity of 19.80% is 84% above median its 10-year median of 10.75. Over the past 10 years, this metric has ranged from a low of 8.15 to a high of 21.03. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.89. Otsuka Holdings Co's value of 19.80% is 151% above this industry median. Based on the distribution chart, Otsuka Holdings Co ranks #177 out of 895 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Otsuka Holdings Co has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Otsuka Holdings Co's Return-on-Tangible-Equity compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Otsuka Holdings Co ranks #177 out of 895 companies for Return-on-Tangible-Equity. This places Otsuka Holdings Co in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.89. Otsuka Holdings Co's value of 19.80% is 151% above this benchmark. Historically, Otsuka Holdings Co's own Return-on-Tangible-Equity has ranged from 8.15 to 21.03 over the past decade. While the company's 10-year median is 10.75 vs. the industry median of 7.89, Otsuka Holdings Co 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 7.89, based on 895 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. Otsuka Holdings Co's current Return-on-Tangible-Equity of 19.80% is 151% 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 Otsuka Holdings Co and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otsuka Holdings Co's current Return-on-Tangible-Equity is 19.80%, which is 84% above median its own 10-year median of 10.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otsuka Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Otsuka Holdings Co (STU:OS1) is currently considered Significantly Overvalued. The stock's GF Value™ is €44.74, compared to a current price of €60.50 — trading 35.2% above its estimated fair value. The current Return-on-Tangible-Equity is 19.80%, which is 84% above median its 10-year median of 10.75 and 151% above the Drug Manufacturers industry median of 7.89. Otsuka Holdings Co's overall GF Score™ is 87/100 with 6 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 Otsuka Holdings Co (STU:OS1), the current Return-on-Tangible-Equity is 19.80% 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 Otsuka Holdings Co (STU:OS1) Overvalued in 2026?
Based on GuruFocus' analysis, Otsuka Holdings Co stock appears to be overvalued.
The current stock price of €60.50 is trading 35.2% above its estimated GF Value™ of €44.74.
GuruFocus considers Otsuka Holdings Co to be Significantly Overvalued.
Key valuation signals for STU:OS1:
Return-on-Tangible-Equity: 19.80% (84% above median its 10-year median of 10.75)
GF Value™: €44.74 vs. price of €60.50 (35.2% above fair value)
Industry Position: 151% above the Drug Manufacturers median (#177 of 895)
No single metric tells the full story. See the STU:OS1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Otsuka Holdings Co Ltd is a Japan-based company that operates in pharmaceuticals, nutraceuticals, and consumer products. It operates through four reportable segments: Medical-related Business, Nutraceutical-related Business, Consumer-related Business, and Other Business. The Medical Business manufactures and sells therapeutic drugs and infusions, the Nutraceutical Business produces functional foods, beverages, and nutritional supplements, the Consumer Business offers mineral water, beverages, and foods, while the Other Business provides storage services and manufactures chemicals and analytical equipment. It generates the majority of its revenue from the medical-related business segment.
87GF Score
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