VDRM (ViaDerma) Return-on-Tangible-Equity: 11.04% (As of Jun. 2012)


What is ViaDerma Return-on-Tangible-Equity?

ViaDerma VDRM Return-on-Tangible-Equity is 11.04% as of Jun. 2012.

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. ViaDerma's annualized net income for the quarter that ended in Jun. 2012 was $3.82 Mil. ViaDerma's average shareholder tangible equity for the quarter that ended in Jun. 2012 was $34.61 Mil. Therefore, ViaDerma's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2012 was 11.04%.

The historical rank and industry rank for ViaDerma's Return-on-Tangible-Equity or its related term are showing as below:

VDRM's Return-on-Tangible-Equity is not ranked *
in the Drug Manufacturers industry.
Industry Median: 7.88
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

ViaDerma  (OTCPK:VDRM) 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.


ViaDerma Return-on-Tangible-Equity Related Terms


ViaDerma Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for ViaDerma'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.

ViaDerma Return-on-Tangible-Equity Chart

ViaDerma Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11
Return-on-Tangible-Equity
-1,566.67 76.21 20.15 17.12 8.52

ViaDerma Quarterly Data
Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.76 5.23 6.45 4.74 11.04

VDRM vs AOLS, RDGL, PCYN: Return-on-Tangible-Equity Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, ViaDerma'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.


ViaDerma Return-on-Tangible-Equity vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, ViaDerma's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where ViaDerma's Return-on-Tangible-Equity falls into.



ViaDerma Return-on-Tangible-Equity Calculation

ViaDerma's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2011 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2011 )  (A: Dec. 2010 )(A: Dec. 2011 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2011 )  (A: Dec. 2010 )(A: Dec. 2011 )
=2.673/( (29.207+33.56 )/ 2 )
=2.673/31.3835
=8.52 %

ViaDerma's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2012 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Jun. 2012 )  (Q: Mar. 2012 )(Q: Jun. 2012 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Jun. 2012 )  (Q: Mar. 2012 )(Q: Jun. 2012 )
=3.82/( (34.117+35.098)/ 2 )
=3.82/34.6075
=11.04 %

* 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 (Jun. 2012) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 11.04% mean?
ViaDerma (VDRM) has a Return-on-Tangible-Equity of 11.04% as of Jun. 2012. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on ViaDerma and its competitors.
Is ViaDerma's Return-on-Tangible-Equity too high?
ViaDerma's current Return-on-Tangible-Equity is 11.04%. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.88. ViaDerma's value of 11.04% is 40.1% above this industry median.
How does ViaDerma's Return-on-Tangible-Equity compare to AOLS and RDGL?
ViaDerma's Return-on-Tangible-Equity of 11.04% can be compared against companies in the Drug Manufacturers industry. The industry median Return-on-Tangible-Equity is 7.88. ViaDerma's value of 11.04% is 40.1% above this benchmark. 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. ViaDerma's current Return-on-Tangible-Equity of 11.04% is 40.1% 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 ViaDerma 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. ViaDerma's current Return-on-Tangible-Equity is 11.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ViaDerma stock overvalued right now?
ViaDerma (VDRM) has a current Return-on-Tangible-Equity of 11.04%. The current Return-on-Tangible-Equity is 11.04% and 40.1% above the Drug Manufacturers industry median of 7.88. 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 ViaDerma (VDRM), the current Return-on-Tangible-Equity is 11.04% as of Jun. 2012. 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.

ViaDerma Business Description

Address 4640 Admiralty Way, Suite 500, Marina Del Rey, CA, USA, 90292
ViaDerma Inc is a specialty pharmaceutical company focused to bring new products to market through research and development. It is engaged in the business of manufacturing and sales of pharmaceuticals, and specifically topical antibiotics and pain management in the United States of America. Its sells under the brand name Vitastem. The Company also has products in development in the fields; anti-aging skin care, pain management, hair-loss, and toenail fungus.