The historical rank and industry rank for Applied Biosciences's Gross Margin % or its related term are showing as below:
APPB's Gross Margin % is not ranked *
in the Drug Manufacturers industry.
Industry Median: 48.44 * Ranked among companies with meaningful Gross Margin % only.
Applied Biosciences had a gross margin of 69.41% for the quarter that ended in Dec. 2019 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Applied Biosciences was 0.00% per year.
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
Applied Biosciences had a gross margin of 69.41% for the quarter that ended in Dec. 2019 => 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.
Applied Biosciences Gross Margin % Related Terms
Applied Biosciences Gross Margin % Historical Data
* Premium members only.
The historical data trend for Applied Biosciences'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.
APPB vs CNABQ, OWCP, CXUS: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Applied Biosciences'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.
Applied Biosciences Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Applied Biosciences's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Applied Biosciences'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.
Applied Biosciences (APPB) has a Gross Margin % of 69.41% as of Dec. 2019. Gross margin is the ratio of total gross profit to net sales. View historical data on Applied Biosciences and its competitors.
Is Applied Biosciences' Gross Margin % too high?
Applied Biosciences' current Gross Margin % is 69.41%. The Drug Manufacturers industry median Gross Margin % is 48.44. Applied Biosciences' value of 69.41% is 43.3% above this industry median. Overall, Applied Biosciences has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Applied Biosciences' Gross Margin % compare to CNABQ and OWCP?
Applied Biosciences' Gross Margin % of 69.41% can be compared against companies in the Drug Manufacturers industry. The industry median Gross Margin % is 48.44. Applied Biosciences' value of 69.41% is 43.3% above this benchmark. 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. Applied Biosciences's current Gross Margin % of 69.41% is 43.3% 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 Applied Biosciences 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. Applied Biosciences's current Gross Margin % is 69.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Biosciences stock overvalued right now?
Applied Biosciences (APPB) has a current Gross Margin % of 69.41%. The current Gross Margin % is 69.41% and 43.3% above the Drug Manufacturers industry median of 48.44. Applied Biosciences' overall GF Score™ is 12/100. 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 Applied Biosciences (APPB), the current Gross Margin % is 69.41% as of Dec. 2019. 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.
Applied Biosciences Corp is a vertically integrated company focused on the development and commercialization of novel, science-driven, synthetic cannabinoid therapeutics / biopharmaceuticals that target the endocannabinoid system to treat a wide-range of diseases across multiple therapeutic areas. The company also deliver high-quality consumer and OTC THC-free CBD products that promote overall health and wellbeing as well as state-of-the-art testing and analytics capabilities to its customers.
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