Faes FarmaFRA:FFEA -0.66%89 ROE % is 7.41% as of Dec. 2025, which is 52% below its 10-year median of 15.47. GuruFocus rates FRA:FFEA with a GF Score™ of 89/100 and a GF Value™ of €5.08 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 935 Drug Manufacturers companies, Faes Farma ranks better than 67.27% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Faes Farma's annualized net income for the quarter that ended in Dec. 2025 was €54.6 Mil. Faes Farma's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was €737.1 Mil. Therefore, Faes Farma's annualized ROE % for the quarter that ended in Dec. 2025 was 7.41%.
The historical rank and industry rank for Faes Farma's ROE % or its related term are showing as below:
FRA:FFEA'
s ROE % Range Over the Past 10 Years
Min: 10.83 Med: 15.47 Max: 16.55
Current: 10.86
During the past 13 years, Faes Farma's highest ROE % was 16.55%. The lowest was 10.83%. And the median was 15.47%.
FRA:FFEA's ROE % is ranked better than 67.27% of 935
companies
in the Drug Manufacturers industry
Industry Median: 6
vs FRA:FFEA: 10.86
Faes Farma (FRA:FFEA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Faes Farma ROE % Related Terms
Faes Farma ROE % Historical Data
* Premium members only.
The historical data trend for Faes Farma's ROE % 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Faes Farma's ROE %, along with its competitors' market caps and ROE % 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.
Faes Farma ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Faes Farma's ROE % distribution charts can be found below:
* The bar in red indicates where Faes Farma's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Faes Farma (FRA:FFEA) has a ROE % of 7.41% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Faes Farma and its competitors. This is 52% below median its historical median of 15.47. Over the past decade, Faes Farma's ROE % has ranged from 10.83 to 16.55. According to the industry distribution chart, Faes Farma ranks #306 out of 935 companies in the Drug Manufacturers industry, placing it in the top 32.7%.
Is Faes Farma's ROE % too high?
Faes Farma's current ROE % of 7.41% is 52% below median its 10-year median of 15.47. Over the past 10 years, this metric has ranged from a low of 10.83 to a high of 16.55. The Drug Manufacturers industry median ROE % is 6.00. Faes Farma's value of 7.41% is 23.5% above this industry median. Based on the distribution chart, Faes Farma ranks #306 out of 935 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Faes Farma has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Faes Farma's ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Faes Farma ranks #306 out of 935 companies for ROE %. This puts Faes Farma in the upper half of its industry. The industry median ROE % is 6.00. Faes Farma's value of 7.41% is 23.5% above this benchmark. Historically, Faes Farma's own ROE % has ranged from 10.83 to 16.55 over the past decade. While the company's 10-year median is 15.47 vs. the industry median of 6.00, Faes Farma 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 ROE % for a Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 6.00, based on 935 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Faes Farma's current ROE % of 7.41% is 23.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Faes Farma and its competitors. For the Drug Manufacturers industry, the median ROE % is 6.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Faes Farma's current ROE % is 7.41%, which is 52% below median its own 10-year median of 15.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Faes Farma stock overvalued right now?
Based on GuruFocus' analysis, Faes Farma (FRA:FFEA) is currently considered Modestly Undervalued. The stock's GF Value™ is €5.08, compared to a current price of €4.54 — trading 10.7% below its estimated fair value. The current ROE % is 7.41%, which is 52% below median its 10-year median of 15.47 and 23.5% above the Drug Manufacturers industry median of 6.00. Faes Farma's overall GF Score™ is 89/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Faes Farma (FRA:FFEA), the current ROE % is 7.41% 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 Faes Farma (FRA:FFEA) Overvalued in 2026?
Based on GuruFocus' analysis, Faes Farma stock appears to be undervalued.
The current stock price of €4.54 is trading 10.7% below its estimated GF Value™ of €5.08.
GuruFocus considers Faes Farma to be Modestly Undervalued.
Key valuation signals for FRA:FFEA:
ROE %: 7.41% (52% below median its 10-year median of 15.47)
GF Value™: €5.08 vs. price of €4.54 (10.7% below fair value)
Industry Position: 23.5% above the Drug Manufacturers median (#306 of 935)
No single metric tells the full story. See the FRA:FFEA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Faes Farma SA purpose is manufacturing and selling all kinds of chemical and pharmaceutical products, foodstuffs, cosmetics, dietetics and medicinal plants, as well as acquiring, purchasing, disposing of, investing in, holding, using, managing, administering, marketing and leasing corporations, securities and real estate, patents, trademarks and registered brands and equity interests. It is mainly engaged in the manufacture and sale of pharmaceutical products, as well as in the manufacture and sale of animal nutrition and health products. Its segments are Pharmaceutical and healthcare specialities, Animal nutrition and health, and Other segments. It generates majority of revenue from Pharmaceutical and healthcare specialities. It operates mainly in domestic and international markets.
89GF Score
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