Lotus Pharmaceutical CoTPE:1795 -3.17%76 ROE % is 19.53% as of Dec. 2025, which is 47% above its 10-year median of 13.32. GuruFocus rates TPE:1795 with a GF Score™ of 76/100 and a GF Value™ of NT$441.58 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 933 Drug Manufacturers companies, Lotus Pharmaceutical Co ranks better than 88.85% on this metric.
The historical rank and industry rank for Lotus Pharmaceutical Co's ROE % or its related term are showing as below:
TPE:1795'
s ROE % Range Over the Past 10 Years
Min: -1.76 Med: 13.32 Max: 26.32
Current: 21.71
During the past 13 years, Lotus Pharmaceutical Co's highest ROE % was 26.32%. The lowest was -1.76%. And the median was 13.32%.
TPE:1795's ROE % is ranked better than 88.85% of 933
companies
in the Drug Manufacturers industry
Industry Median: 5.89
vs TPE:1795: 21.71
Lotus Pharmaceutical Co (TPE:1795) 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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (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.
* 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, Lotus Pharmaceutical Co'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.
Lotus Pharmaceutical Co ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Lotus Pharmaceutical Co's ROE % distribution charts can be found below:
* The bar in red indicates where Lotus Pharmaceutical Co'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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Lotus Pharmaceutical Co (TPE:1795) has a ROE % of 19.53% 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 Lotus Pharmaceutical Co and its competitors. This is 47% above median its historical median of 13.32. According to the industry distribution chart, Lotus Pharmaceutical Co ranks #104 out of 933 companies in the Drug Manufacturers industry, placing it in the top 11.1%.
Is Lotus Pharmaceutical Co's ROE % too high?
Lotus Pharmaceutical Co's current ROE % of 19.53% is 47% above median its 10-year median of 13.32. The Drug Manufacturers industry median ROE % is 5.89. Lotus Pharmaceutical Co's value of 19.53% is 231.6% above this industry median. Based on the distribution chart, Lotus Pharmaceutical Co ranks #104 out of 933 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Lotus Pharmaceutical Co has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Lotus Pharmaceutical Co's ROE % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Lotus Pharmaceutical Co ranks #104 out of 933 companies for ROE %. This places Lotus Pharmaceutical Co in the top 11% of its industry — outperforming the majority of peers. The industry median ROE % is 5.89. Lotus Pharmaceutical Co's value of 19.53% is 231.6% above this benchmark. While the company's 10-year median is 13.32 vs. the industry median of 5.89, Lotus Pharmaceutical Co 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 5.89, based on 933 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. Lotus Pharmaceutical Co's current ROE % of 19.53% is 231.6% 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 Lotus Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lotus Pharmaceutical Co's current ROE % is 19.53%, which is 47% above median its own 10-year median of 13.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lotus Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Lotus Pharmaceutical Co (TPE:1795) is currently considered Possible Value Trap. The stock's GF Value™ is NT$441.58, compared to a current price of NT$183.00 — trading 58.6% below its estimated fair value. The current ROE % is 19.53%, which is 47% above median its 10-year median of 13.32 and 231.6% above the Drug Manufacturers industry median of 5.89. Lotus Pharmaceutical Co's overall GF Score™ is 76/100 with 4 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 Lotus Pharmaceutical Co (TPE:1795), the current ROE % is 19.53% 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 Lotus Pharmaceutical Co (TPE:1795) Overvalued in 2026?
Based on GuruFocus' analysis, Lotus Pharmaceutical Co stock appears to be undervalued.
The current stock price of NT$183.00 is trading 58.6% below its estimated GF Value™ of NT$441.58.
GuruFocus considers Lotus Pharmaceutical Co to be Possible Value Trap.
Key valuation signals for TPE:1795:
ROE %: 19.53% (47% above median its 10-year median of 13.32)
GF Value™: NT$441.58 vs. price of NT$183.00 (58.6% below fair value)
Industry Position: 231.6% above the Drug Manufacturers median (#104 of 933)
No single metric tells the full story. See the TPE:1795 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lotus Pharmaceutical Co Ltd is engaged in the healthcare sector. Along with its subsidiaries, it is engaged in the research and development, manufacturing, and sales of generic and branded pharmaceutical products, as well as consulting services. Its product portfolio comprises biosimilars, generic medicines, branded medicines, and various therapies in its research and development pipeline. The Group offers a differentiated portfolio of pharmaceuticals spanning several therapeutic areas, including oncology and immunology, CNS, women's health, primary care and lifestyle, and nephrology, among others. Geographically, it generates maximum revenue from the United States, and the rest from Taiwan, South Korea, Singapore, and other countries.
76GF Score
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