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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. Sumitomo Pharma Co's annualized net income for the quarter that ended in Mar. 2026 was 円-3,248 Mil. Sumitomo Pharma Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was 円-80,173 Mil. Therefore, Sumitomo Pharma Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was N/A%.
The historical rank and industry rank for Sumitomo Pharma Co's Return-on-Tangible-Equity or its related term are showing as below:
TSE:4506'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.96 Med: 37.79 Max: 324.92
Current: Negative Tangible Equity
During the past 13 years, Sumitomo Pharma Co's highest Return-on-Tangible-Equity was 324.92%. The lowest was 17.96%. And the median was 37.79%.
TSE:4506's Return-on-Tangible-Equity is ranked better than 99.89% of 900
companies
in the Drug Manufacturers industry
Industry Median: 7.925
vs TSE:4506: Negative Tangible Equity
Sumitomo Pharma Co (TSE:4506) 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.
Sumitomo Pharma Co Return-on-Tangible-Equity Related Terms
Sumitomo Pharma Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sumitomo Pharma 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.
Sumitomo Pharma Co Return-on-Tangible-Equity Chart
TSE:4506 vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Sumitomo Pharma 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.
Sumitomo Pharma Co Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sumitomo Pharma Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sumitomo Pharma 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 0.00% mean?
Sumitomo Pharma Co (TSE:4506) has a Return-on-Tangible-Equity of 0.00% 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 Sumitomo Pharma Co and its competitors. Over the past decade, Sumitomo Pharma Co's Return-on-Tangible-Equity has ranged from 17.96 to 324.92. According to the industry distribution chart, Sumitomo Pharma Co ranks #1 out of 900 companies in the Drug Manufacturers industry, placing it in the top 0.099999999999994%.
Is Sumitomo Pharma Co's Return-on-Tangible-Equity too high?
Sumitomo Pharma Co's current Return-on-Tangible-Equity is 0.00%. Over the past 10 years, this metric has ranged from a low of 17.96 to a high of 324.92. Based on the distribution chart, Sumitomo Pharma Co ranks #1 out of 900 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Sumitomo Pharma Co has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Pharma Co's Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Sumitomo Pharma Co ranks #1 out of 900 companies for Return-on-Tangible-Equity. This places Sumitomo Pharma Co in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.93. Historically, Sumitomo Pharma Co's own Return-on-Tangible-Equity has ranged from 17.96 to 324.92 over the past decade. 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 7.93, based on 900 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. 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 Sumitomo Pharma Co and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Pharma Co's current Return-on-Tangible-Equity is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Pharma Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Pharma Co (TSE:4506) is currently considered Significantly Overvalued. The stock's GF Value™ is 円839.15, compared to a current price of 円1,261.00 — trading 50.3% above its estimated fair value. The current Return-on-Tangible-Equity is 0.00%. Sumitomo Pharma Co's overall GF Score™ is 65/100 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 Sumitomo Pharma Co (TSE:4506), the current Return-on-Tangible-Equity is 0.00% 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 Sumitomo Pharma Co (TSE:4506) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Pharma Co stock appears to be overvalued.
The current stock price of 円1,261.00 is trading 50.3% above its estimated GF Value™ of 円839.15.
GuruFocus considers Sumitomo Pharma Co to be Significantly Overvalued.
Key valuation signals for TSE:4506:
Return-on-Tangible-Equity: 0.00%
GF Value™: 円839.15 vs. price of 円1,261.00 (50.3% above fair value)
No single metric tells the full story. See the TSE:4506 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Pharma Co Ltd is a specialty and generic drug manufacturing company. Sumitomo's vast majority of sales are generated in North America, followed by Japan. The company's core business is its pharmaceutical products business. The pharmaceutical business maintains a focus on a variety of areas, including cardiovascular/diabetes, psychiatry & neurology, and specialty areas. Sumitomo considers merger and acquisition investment as a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.
65GF Score
Get the complete analysis for TSE:4506
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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