Laboratorio Farmaceutico Erfo SpAMIL:ERFO +0.85%68 ROE % is 1.81% as of Dec. 2025, which is 90% below its 10-year median of 17.47. GuruFocus rates MIL:ERFO with a GF Score™ of 68/100 and a GF Value™ of €2.10 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,913 Consumer Packaged Goods companies, Laboratorio Farmaceutico Erfo SpA ranks worse than 57.34% on this metric.
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.
Laboratorio Farmaceutico Erfo SpA ROE % Related Terms
Laboratorio Farmaceutico Erfo SpA ROE % Historical Data
* 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 Packaged Foods subindustry, Laboratorio Farmaceutico Erfo SpA'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.
Laboratorio Farmaceutico Erfo SpA ROE % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Laboratorio Farmaceutico Erfo SpA's ROE % distribution charts can be found below:
* The bar in red indicates where Laboratorio Farmaceutico Erfo SpA'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.
Laboratorio Farmaceutico Erfo SpA (MIL:ERFO) has a ROE % of 1.81% 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 Laboratorio Farmaceutico Erfo SpA and its competitors. This is 90% below median its historical median of 17.47. Over the past decade, Laboratorio Farmaceutico Erfo SpA's ROE % has ranged from 4.76 to 54.79. According to the industry distribution chart, Laboratorio Farmaceutico Erfo SpA ranks #1097 out of 1913 companies in the Consumer Packaged Goods industry, placing it in the top 57.3%.
Is Laboratorio Farmaceutico Erfo SpA's ROE % too high?
Laboratorio Farmaceutico Erfo SpA's current ROE % of 1.81% is 90% below median its 10-year median of 17.47. Over the past 10 years, this metric has ranged from a low of 4.76 to a high of 54.79. The Consumer Packaged Goods industry median ROE % is 6.73. Laboratorio Farmaceutico Erfo SpA's value of 1.81% is 73.1% below this industry median. Based on the distribution chart, Laboratorio Farmaceutico Erfo SpA ranks #1097 out of 1913 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Laboratorio Farmaceutico Erfo SpA has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Laboratorio Farmaceutico Erfo SpA's ROE % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Laboratorio Farmaceutico Erfo SpA ranks #1097 out of 1913 companies for ROE %. This places Laboratorio Farmaceutico Erfo SpA in the lower half of its industry. The industry median ROE % is 6.73. Laboratorio Farmaceutico Erfo SpA's value of 1.81% is 73.1% below this benchmark. Historically, Laboratorio Farmaceutico Erfo SpA's own ROE % has ranged from 4.76 to 54.79 over the past decade. While the company's 10-year median is 17.47 vs. the industry median of 6.73, Laboratorio Farmaceutico Erfo SpA has consistently been below 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 Consumer Packaged Goods company?
The median ROE % among Consumer Packaged Goods companies is 6.73, based on 1,913 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. Laboratorio Farmaceutico Erfo SpA's current ROE % of 1.81% is 73.1% below 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 Laboratorio Farmaceutico Erfo SpA and its competitors. For the Consumer Packaged Goods industry, the median ROE % is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Laboratorio Farmaceutico Erfo SpA's current ROE % is 1.81%, which is 90% below median its own 10-year median of 17.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laboratorio Farmaceutico Erfo SpA stock overvalued right now?
Based on GuruFocus' analysis, Laboratorio Farmaceutico Erfo SpA (MIL:ERFO) is currently considered Significantly Undervalued. The stock's GF Value™ is €2.10, compared to a current price of €1.18 — trading 43.8% below its estimated fair value. The current ROE % is 1.81%, which is 90% below median its 10-year median of 17.47 and 73.1% below the Consumer Packaged Goods industry median of 6.73. Laboratorio Farmaceutico Erfo SpA's overall GF Score™ is 68/100 with 3 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 Laboratorio Farmaceutico Erfo SpA (MIL:ERFO), the current ROE % is 1.81% 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 Laboratorio Farmaceutico Erfo SpA (MIL:ERFO) Overvalued in 2026?
Based on GuruFocus' analysis, Laboratorio Farmaceutico Erfo SpA stock appears to be undervalued.
The current stock price of €1.18 is trading 43.8% below its estimated GF Value™ of €2.10.
GuruFocus considers Laboratorio Farmaceutico Erfo SpA to be Significantly Undervalued.
Key valuation signals for MIL:ERFO:
ROE %: 1.81% (90% below median its 10-year median of 17.47)
GF Value™: €2.10 vs. price of €1.18 (43.8% below fair value)
Industry Position: 73.1% below the Consumer Packaged Goods median (#1097 of 1913)
No single metric tells the full story. See the MIL:ERFO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Laboratorio Farmaceutico Erfo SpA Business Description
Laboratorio Farmaceutico Erfo SpA operates in the nutraceutical sector. The company specializes in formulating and producing food supplements and natural medicines in different forms such as liquids, powders, granules, tablets, and soft gels. Geographically, the company generates a majority of its revenue from Italy followed by Spain, France, Belgium, and other countries.
68GF Score
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