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Simcere Pharmaceutical GroupSTU:S2P -2.82%94 Return-on-Tangible-Equity is 21.94% as of Dec. 2025, which is 3% above its 10-year median of 21.34. GuruFocus rates STU:S2P with a GF Score™ of 94/100 and a GF Value™ of €1.16. Among 899 Drug Manufacturers companies, Simcere Pharmaceutical Group ranks better than 80.31% 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. Simcere Pharmaceutical Group's annualized net income for the quarter that ended in Dec. 2025 was €179.6 Mil. Simcere Pharmaceutical Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €818.5 Mil. Therefore, Simcere Pharmaceutical Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 21.94%.
The historical rank and industry rank for Simcere Pharmaceutical Group's Return-on-Tangible-Equity or its related term are showing as below:
STU:S2P'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.93 Med: 21.34 Max: 74.17
Current: 20.87
During the past 9 years, Simcere Pharmaceutical Group's highest Return-on-Tangible-Equity was 74.17%. The lowest was 10.93%. And the median was 21.34%.
STU:S2P's Return-on-Tangible-Equity is ranked better than 80.31% of 899
companies
in the Drug Manufacturers industry
Industry Median: 7.95
vs STU:S2P: 20.87
Simcere Pharmaceutical Group (STU:S2P) 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.
Simcere Pharmaceutical Group Return-on-Tangible-Equity Related Terms
Simcere Pharmaceutical Group 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.
Simcere Pharmaceutical Group Return-on-Tangible-Equity Chart
STU:S2P vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Simcere Pharmaceutical Group'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.
Simcere Pharmaceutical Group Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Simcere Pharmaceutical Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Simcere Pharmaceutical Group'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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 21.94% mean?
Simcere Pharmaceutical Group (STU:S2P) has a Return-on-Tangible-Equity of 21.94% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Simcere Pharmaceutical Group and its competitors. This is near median its historical median of 21.34. Over the past decade, Simcere Pharmaceutical Group's Return-on-Tangible-Equity has ranged from 10.93 to 74.17. According to the industry distribution chart, Simcere Pharmaceutical Group ranks #177 out of 899 companies in the Drug Manufacturers industry, placing it in the top 19.7%.
Is Simcere Pharmaceutical Group's Return-on-Tangible-Equity too high?
Simcere Pharmaceutical Group's current Return-on-Tangible-Equity of 21.94% is near median its 10-year median of 21.34. Over the past 10 years, this metric has ranged from a low of 10.93 to a high of 74.17. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.95. Simcere Pharmaceutical Group's value of 21.94% is 176% above this industry median. Based on the distribution chart, Simcere Pharmaceutical Group ranks #177 out of 899 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Simcere Pharmaceutical Group has a GF Score™ of 94/100, reflecting its overall financial health beyond just this single metric.
How does Simcere Pharmaceutical Group's Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Simcere Pharmaceutical Group ranks #177 out of 899 companies for Return-on-Tangible-Equity. This places Simcere Pharmaceutical Group in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.95. Simcere Pharmaceutical Group's value of 21.94% is 176% above this benchmark. Historically, Simcere Pharmaceutical Group's own Return-on-Tangible-Equity has ranged from 10.93 to 74.17 over the past decade. While the company's 10-year median is 21.34 vs. the industry median of 7.95, Simcere Pharmaceutical Group 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 7.95, 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. Simcere Pharmaceutical Group's current Return-on-Tangible-Equity of 21.94% is 176% 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 Simcere Pharmaceutical Group and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simcere Pharmaceutical Group's current Return-on-Tangible-Equity is 21.94%, which is near median its own 10-year median of 21.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simcere Pharmaceutical Group stock overvalued right now?
Simcere Pharmaceutical Group (STU:S2P) has a current Return-on-Tangible-Equity of 21.94%. The stock's GF Value™ is €1.16, compared to a current price of €1.38 — trading 19% above its estimated fair value. The current Return-on-Tangible-Equity is 21.94%, which is near median its 10-year median of 21.34 and 176% above the Drug Manufacturers industry median of 7.95. Simcere Pharmaceutical Group's overall GF Score™ is 94/100. 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 Simcere Pharmaceutical Group (STU:S2P), the current Return-on-Tangible-Equity is 21.94% as of Dec. 2025. 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 Simcere Pharmaceutical Group (STU:S2P) Overvalued in 2026?
Based on GuruFocus' analysis, Simcere Pharmaceutical Group stock appears to be overvalued.
The current stock price of €1.38 is trading 19% above its estimated GF Value™ of €1.16.
Key valuation signals for STU:S2P:
Return-on-Tangible-Equity: 21.94% (near median its 10-year median of 21.34)
GF Value™: €1.16 vs. price of €1.38 (19% above fair value)
Industry Position: 176% above the Drug Manufacturers median (#177 of 899)
No single metric tells the full story. See the STU:S2P stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simcere Pharmaceutical Group Ltd is engaged in the R&D, production, and commercialization of pharmaceuticals focused on generic pharmaceuticals. The company has a diversified product portfolio focused on therapeutic areas, including, neuroscience, anti-oncology, autoimmune, and antiinfection. The company's products include Endostar, Enweida, Enzeshu, Iremod, Quviviq, Cosela, Sanbexin and Others.
94GF Score
Get the complete analysis for STU:S2P
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