ECS Botanics HoldingsASX:ECS -11.11% Gross Margin % is 41.84% as of Dec. 2025, which is 7% above its 10-year median of 39.24. The stock has 9 warning signs investors should review. Among 938 Drug Manufacturers companies, ECS Botanics Holdings ranks better than 71.32% 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
ECS Botanics Holdings had a gross margin of 41.84% for the quarter that ended in Dec. 2025 => 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.
ECS Botanics Holdings Gross Margin % Related Terms
ECS Botanics Holdings Gross Margin % Historical Data
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The historical data trend for ECS Botanics Holdings'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, ECS Botanics Holdings'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.
ECS Botanics Holdings Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, ECS Botanics Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ECS Botanics Holdings'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.
ECS Botanics Holdings (ASX:ECS) has a Gross Margin % of 41.84% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on ECS Botanics Holdings and its competitors. This is near median its historical median of 39.24. According to the industry distribution chart, ECS Botanics Holdings ranks #269 out of 938 companies in the Drug Manufacturers industry, placing it in the top 28.7%.
Is ECS Botanics Holdings' Gross Margin % too high?
ECS Botanics Holdings' current Gross Margin % of 41.84% is near median its 10-year median of 39.24. The Drug Manufacturers industry median Gross Margin % is 48.44. ECS Botanics Holdings' value of 41.84% is 13.6% below this industry median. Based on the distribution chart, ECS Botanics Holdings ranks #269 out of 938 companies in the Drug Manufacturers industry, which is above the industry midpoint.
How does ECS Botanics Holdings' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, ECS Botanics Holdings ranks #269 out of 938 companies for Gross Margin %. This puts ECS Botanics Holdings in the upper half of its industry. The industry median Gross Margin % is 48.44. ECS Botanics Holdings' value of 41.84% is 13.6% below this benchmark. While the company's 10-year median is 39.24 vs. the industry median of 48.44, ECS Botanics Holdings 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 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. ECS Botanics Holdings's current Gross Margin % of 41.84% is 13.6% 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 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 ECS Botanics Holdings 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. ECS Botanics Holdings's current Gross Margin % is 41.84%, which is near median its own 10-year median of 39.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ECS Botanics Holdings stock overvalued right now?
Based on GuruFocus' analysis, ECS Botanics Holdings (ASX:ECS) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.02, compared to a current price of A$0.00 — trading 80% below its estimated fair value. The current Gross Margin % is 41.84%, which is near median its 10-year median of 39.24 and 13.6% below the Drug Manufacturers industry median of 48.44. 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 ECS Botanics Holdings (ASX:ECS), the current Gross Margin % is 41.84% 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.
ECS Botanics Holdings Ltd is an Australian medicinal cannabis cultivator and manufacturer located in Northwest Victoria. The company utilizes progressive cultivation methodologies to produce quality medicine in a sustainable way, adopting regenerative and organic horticultural practices and renewable energy sources. Licensed by the Therapeutic Drug Administration to manufacture PIC/S GMP certified products, the company provides quality, affordable medicinal cannabis, supplying both local and overseas markets.
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