United TherapeuticsUTHR +1.57%88 Return-on-Tangible-Equity is 17.23% as of Mar. 2026, which is 10% below its 10-year median of 19.07. GuruFocus rates UTHR with a GF Score™ of 88/100 and a GF Value™ of $386.63 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 898 Drug Manufacturers companies, United Therapeutics ranks better than 78.84% 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. United Therapeutics's annualized net income for the quarter that ended in Mar. 2026 was $1,100 Mil. United Therapeutics's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $6,383 Mil. Therefore, United Therapeutics's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.23%.
The historical rank and industry rank for United Therapeutics's Return-on-Tangible-Equity or its related term are showing as below:
UTHR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -3.97 Med: 19.07 Max: 41.99
Current: 19.51
During the past 13 years, United Therapeutics's highest Return-on-Tangible-Equity was 41.99%. The lowest was -3.97%. And the median was 19.07%.
UTHR's Return-on-Tangible-Equity is ranked better than 78.84% of 898
companies
in the Drug Manufacturers industry
Industry Median: 7.88
vs UTHR: 19.51
United Therapeutics (NAS:UTHR) 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.
United Therapeutics Return-on-Tangible-Equity Related Terms
United Therapeutics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for United Therapeutics'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.
United Therapeutics Return-on-Tangible-Equity Chart
UTHR vs VTRS, NBIX, ZTS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, United Therapeutics'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.
United Therapeutics Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, United Therapeutics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where United Therapeutics'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 17.23% mean?
United Therapeutics (UTHR) has a Return-on-Tangible-Equity of 17.23% 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 United Therapeutics and its competitors. This is 10% below median its historical median of 19.07. According to the industry distribution chart, United Therapeutics ranks #190 out of 898 companies in the Drug Manufacturers industry, placing it in the top 21.2%.
Is United Therapeutics' Return-on-Tangible-Equity too high?
United Therapeutics' current Return-on-Tangible-Equity of 17.23% is 10% below median its 10-year median of 19.07. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.88. United Therapeutics' value of 17.23% is 118.7% above this industry median. Based on the distribution chart, United Therapeutics ranks #190 out of 898 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, United Therapeutics has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does United Therapeutics' Return-on-Tangible-Equity compare to VTRS and NBIX?
According to the Drug Manufacturers industry distribution chart, United Therapeutics ranks #190 out of 898 companies for Return-on-Tangible-Equity. This places United Therapeutics in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.88. United Therapeutics' value of 17.23% is 118.7% above this benchmark. While the company's 10-year median is 19.07 vs. the industry median of 7.88, United Therapeutics 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 7.88, based on 898 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. United Therapeutics's current Return-on-Tangible-Equity of 17.23% is 118.7% 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 United Therapeutics and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Therapeutics's current Return-on-Tangible-Equity is 17.23%, which is 10% below median its own 10-year median of 19.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Therapeutics stock overvalued right now?
Based on GuruFocus' analysis, United Therapeutics (UTHR) is currently considered Significantly Overvalued. The stock's GF Value™ is $386.63, compared to a current price of $556.11 — trading 43.8% above its estimated fair value. The current Return-on-Tangible-Equity is 17.23%, which is 10% below median its 10-year median of 19.07 and 118.7% above the Drug Manufacturers industry median of 7.88. United Therapeutics' overall GF Score™ is 88/100 with 7 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 United Therapeutics (UTHR), the current Return-on-Tangible-Equity is 17.23% 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 United Therapeutics (UTHR) Overvalued in 2026?
Based on GuruFocus' analysis, United Therapeutics stock appears to be overvalued.
The current stock price of $556.11 is trading 43.8% above its estimated GF Value™ of $386.63.
GuruFocus considers United Therapeutics to be Significantly Overvalued.
Key valuation signals for UTHR:
Return-on-Tangible-Equity: 17.23% (10% below median its 10-year median of 19.07)
GF Value™: $386.63 vs. price of $556.11 (43.8% above fair value)
Industry Position: 118.7% above the Drug Manufacturers median (#190 of 898)
No single metric tells the full story. See the UTHR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
United Therapeutics Corp specializes in drug development for pulmonary arterial hypertension (PAH), a rare and progressive disease marked by abnormally high blood pressure in the arteries of the lungs. The company's therapies for PAH largely focus on the prostacyclin pathway, and many of its treatments are based on the same molecule, treprostinil. The company markets and sells the following commercial therapies in the United States to treat PAH: Tyvaso DPI (treprostinil) Inhalation Powder, Remodulin Injection, Orenitram (treprostinil) Extended-Release Tablets, Adcirca (tadalafil) Tablets, and Unituxin. It derives maximum revenue from the sale of Tyvaso DPI. Geographically, the company operates in United States and Rest of the World, of which United States generates majority of the revenue.
88GF Score
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