Labat AfricaJSE:LAB +66.67% ROE % is 52.97% as of Nov. 2025, which is 2% below its 10-year median of 53.94. The stock has 5 warning signs investors should review. Among 936 Drug Manufacturers companies, Labat Africa ranks better than 98.18% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Labat Africa's annualized net income for the quarter that ended in Nov. 2025 was R89.0 Mil. Labat Africa's average Total Stockholders Equity over the quarter that ended in Nov. 2025 was R168.1 Mil. Therefore, Labat Africa's annualized ROE % for the quarter that ended in Nov. 2025 was 52.97%.
The historical rank and industry rank for Labat Africa's ROE % or its related term are showing as below:
JSE:LAB'
s ROE % Range Over the Past 10 Years
Min: -188.9 Med: 53.94 Max: 237.31
Current: 145.08
During the past 13 years, Labat Africa's highest ROE % was 237.31%. The lowest was -188.90%. And the median was 53.94%.
JSE:LAB's ROE % is ranked better than 98.18% of 936
companies
in the Drug Manufacturers industry
Industry Median: 5.865
vs JSE:LAB: 145.08
Labat Africa (JSE:LAB) 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 (Nov. 2025) net income data. The Revenue data used here is two times the semi-annual (Nov. 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.
Labat Africa ROE % Related Terms
Labat Africa ROE % Historical Data
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The historical data trend for Labat Africa'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, Labat Africa'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.
Labat Africa ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's ROE % distribution charts can be found below:
* The bar in red indicates where Labat Africa'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 (Nov. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Labat Africa (JSE:LAB) has a ROE % of 52.97% as of Nov. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Labat Africa and its competitors. This is near median its historical median of 53.94. According to the industry distribution chart, Labat Africa ranks #17 out of 936 companies in the Drug Manufacturers industry, placing it in the top 1.8%.
Is Labat Africa's ROE % too high?
Labat Africa's current ROE % of 52.97% is near median its 10-year median of 53.94. The Drug Manufacturers industry median ROE % is 5.87. Labat Africa's value of 52.97% is 803.2% above this industry median. Based on the distribution chart, Labat Africa ranks #17 out of 936 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers.
How does Labat Africa's ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #17 out of 936 companies for ROE %. This places Labat Africa in the top 2% of its industry — outperforming the majority of peers. The industry median ROE % is 5.87. Labat Africa's value of 52.97% is 803.2% above this benchmark. While the company's 10-year median is 53.94 vs. the industry median of 5.87, Labat Africa 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 5.87, based on 936 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. Labat Africa's current ROE % of 52.97% is 803.2% 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 Labat Africa and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labat Africa's current ROE % is 52.97%, which is near median its own 10-year median of 53.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.22, compared to a current price of R0.05 — trading 77.3% below its estimated fair value. The current ROE % is 52.97%, which is near median its 10-year median of 53.94 and 803.2% above the Drug Manufacturers industry median of 5.87. 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 Labat Africa (JSE:LAB), the current ROE % is 52.97% as of Nov. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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