Aurora CannabisACB -0.70%63 Gross Margin % is 78.36% as of Mar. 2026, which is 47% above its 10-year median of 53.43. GuruFocus rates ACB with a GF Score™ of 63/100 and a GF Value™ of $4.25 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 938 Drug Manufacturers companies, Aurora Cannabis ranks worse than 59.91% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Aurora Cannabis had a gross margin of 78.36% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Aurora Cannabis Gross Margin % Related Terms
Aurora Cannabis Gross Margin % Historical Data
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The historical data trend for Aurora Cannabis's Gross Margin % 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, Aurora Cannabis's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.
Aurora Cannabis Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aurora Cannabis's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aurora Cannabis's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Aurora Cannabis (ACB) has a Gross Margin % of 78.36% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Aurora Cannabis and its competitors. This is 47% above median its historical median of 53.43. According to the industry distribution chart, Aurora Cannabis ranks #562 out of 938 companies in the Drug Manufacturers industry, placing it in the top 59.9%.
Is Aurora Cannabis' Gross Margin % too high?
Aurora Cannabis' current Gross Margin % of 78.36% is 47% above median its 10-year median of 53.43. The Drug Manufacturers industry median Gross Margin % is 48.44. Aurora Cannabis' value of 78.36% is 61.8% above this industry median. Based on the distribution chart, Aurora Cannabis ranks #562 out of 938 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Aurora Cannabis has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Aurora Cannabis' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Aurora Cannabis ranks #562 out of 938 companies for Gross Margin %. This places Aurora Cannabis in the lower half of its industry. The industry median Gross Margin % is 48.44. Aurora Cannabis' value of 78.36% is 61.8% above this benchmark. While the company's 10-year median is 53.43 vs. the industry median of 48.44, Aurora Cannabis 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 Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.44, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aurora Cannabis's current Gross Margin % of 78.36% is 61.8% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Aurora Cannabis and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aurora Cannabis's current Gross Margin % is 78.36%, which is 47% above median its own 10-year median of 53.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aurora Cannabis stock overvalued right now?
Based on GuruFocus' analysis, Aurora Cannabis (ACB) is currently considered Possible Value Trap. The stock's GF Value™ is $4.25, compared to a current price of $2.83 — trading 33.4% below its estimated fair value. The current Gross Margin % is 78.36%, which is 47% above median its 10-year median of 53.43 and 61.8% above the Drug Manufacturers industry median of 48.44. Aurora Cannabis' overall GF Score™ is 63/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Aurora Cannabis (ACB), the current Gross Margin % is 78.36% as of Mar. 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 Aurora Cannabis (ACB) Overvalued in 2026?
Based on GuruFocus' analysis, Aurora Cannabis stock appears to be undervalued.
The current stock price of $2.83 is trading 33.4% below its estimated GF Value™ of $4.25.
GuruFocus considers Aurora Cannabis to be Possible Value Trap.
Key valuation signals for ACB:
Gross Margin %: 78.36% (47% above median its 10-year median of 53.43)
GF Value™: $4.25 vs. price of $2.83 (33.4% below fair value)
Industry Position: 61.8% above the Drug Manufacturers median (#562 of 938)
No single metric tells the full story. See the ACB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aurora Cannabis Inc is focused on the production, distribution, and sale of cannabis products in Canada and internationally. The Company conducts the production, distribution, and sale of medical cannabis products and, on a very limited basis, consumer cannabis products in Canada pursuant to the Cannabis Act; the production and distribution of wholesale medical cannabis in the European Union pursuant to the German Medicinal Products Act and German Narcotic Drugs Act; and the distribution of wholesale medical cannabis in various international markets, including Australia and New Zealand. Its segments are Canadian Cannabis CGU, European Cannabis CGU, Australia Cannabis CGU, and New Zealand Cannabis CGU, with Canada generating majority revenue.
63GF Score
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