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Chemical Works of Gedeon Richter (OTCPK:RGEDF) 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 four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) 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.
Chemical Works of Gedeon Richter ROE % Related Terms
Chemical Works of Gedeon Richter 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 Drug Manufacturers - Specialty & Generic subindustry, Chemical Works of Gedeon Richter'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.
Chemical Works of Gedeon Richter ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Chemical Works of Gedeon Richter's ROE % distribution charts can be found below:
* The bar in red indicates where Chemical Works of Gedeon Richter'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 four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Chemical Works of Gedeon Richter (RGEDF) has a ROE % of 10.87% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Chemical Works of Gedeon Richter and its competitors. This is 23% below median its historical median of 14.11. Over the past decade, Chemical Works of Gedeon Richter's ROE % has ranged from 1.33 to 19.68. According to the industry distribution chart, Chemical Works of Gedeon Richter ranks #358 out of 935 companies in the Drug Manufacturers industry, placing it in the top 38.3%.
Is Chemical Works of Gedeon Richter's ROE % too high?
Chemical Works of Gedeon Richter's current ROE % of 10.87% is 23% below median its 10-year median of 14.11. Over the past 10 years, this metric has ranged from a low of 1.33 to a high of 19.68. The Drug Manufacturers industry median ROE % is 5.87. Chemical Works of Gedeon Richter's value of 10.87% is 85.2% above this industry median. Based on the distribution chart, Chemical Works of Gedeon Richter ranks #358 out of 935 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Chemical Works of Gedeon Richter has a GF Score™ of 97/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemical Works of Gedeon Richter's ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Chemical Works of Gedeon Richter ranks #358 out of 935 companies for ROE %. This puts Chemical Works of Gedeon Richter in the upper half of its industry. The industry median ROE % is 5.87. Chemical Works of Gedeon Richter's value of 10.87% is 85.2% above this benchmark. Historically, Chemical Works of Gedeon Richter's own ROE % has ranged from 1.33 to 19.68 over the past decade. While the company's 10-year median is 14.11 vs. the industry median of 5.87, Chemical Works of Gedeon Richter 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 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. Chemical Works of Gedeon Richter's current ROE % of 10.87% is 85.2% 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 Chemical Works of Gedeon Richter 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. Chemical Works of Gedeon Richter's current ROE % is 10.87%, which is 23% below median its own 10-year median of 14.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemical Works of Gedeon Richter stock overvalued right now?
Based on GuruFocus' analysis, Chemical Works of Gedeon Richter (RGEDF) is currently considered Modestly Overvalued. The stock's GF Value™ is $36.36, compared to a current price of $41.49 — trading 14.1% above its estimated fair value. The current ROE % is 10.87%, which is 23% below median its 10-year median of 14.11 and 85.2% above the Drug Manufacturers industry median of 5.87. Chemical Works of Gedeon Richter's overall GF Score™ is 97/100 with 7 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 Chemical Works of Gedeon Richter (RGEDF), the current ROE % is 10.87% as of Jun. 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 Chemical Works of Gedeon Richter (RGEDF) Overvalued in 2026?
Based on GuruFocus' analysis, Chemical Works of Gedeon Richter stock appears to be overvalued.
The current stock price of $41.49 is trading 14.1% above its estimated GF Value™ of $36.36.
GuruFocus considers Chemical Works of Gedeon Richter to be Modestly Overvalued.
Key valuation signals for RGEDF:
ROE %: 10.87% (23% below median its 10-year median of 14.11)
GF Value™: $36.36 vs. price of $41.49 (14.1% above fair value)
Industry Position: 85.2% above the Drug Manufacturers median (#358 of 935)
No single metric tells the full story. See the RGEDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemical Works of Gedeon Richter PLC is a pharmaceutical company. The company focuses on the development and manufacture of gynaecological, cardiovascular, and central nervous system products. It manufactures medicines including original, generic and licensed products for treatment in the therapeutic area. The group is active in two business segments namely, the Pharma segment comprising Women's Healthcare, Neuropsychiatry, Biotechnology, General Medicine, and Other pharma; and the Others segment includes the remaining wholesale and retail business of the Group and all other activities. The company operates internationally.
97GF Score
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