Little Green PharmaASX:LGP Gross Margin % is 66.81% as of Mar. 2026, which is 3% above its 10-year median of 64.90. The stock has 3 warning signs investors should review. Among 938 Drug Manufacturers companies, Little Green Pharma ranks better than 82.84% on this metric.
The historical rank and industry rank for Little Green Pharma's Gross Margin % or its related term are showing as below:
ASX:LGP'
s Gross Margin % Range Over the Past 10 Years
Min: 51.18 Med: 64.9 Max: 82.47
Current: 71.05
During the past 7 years, the highestGross Margin % of Little Green Pharma was 82.47%. The lowest was 51.18%. And the median was 64.90%.
ASX:LGP's Gross Margin % is ranked better than 82.84% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.44
vs ASX:LGP: 71.05
Little Green Pharma had a gross margin of 66.81% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Little Green Pharma was 2.30% per year.
Little Green Pharma (ASX:LGP) Gross Margin % Explanation
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
Little Green Pharma had a gross margin of 66.81% 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.
Little Green Pharma Gross Margin % Related Terms
Little Green Pharma Gross Margin % Historical Data
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The historical data trend for Little Green Pharma'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, Little Green Pharma'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.
Little Green Pharma Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Little Green Pharma's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Little Green Pharma'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.
Little Green Pharma (ASX:LGP) has a Gross Margin % of 66.81% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Little Green Pharma and its competitors. This is near median its historical median of 64.90. Over the past decade, Little Green Pharma's Gross Margin % has ranged from 51.18 to 82.47. According to the industry distribution chart, Little Green Pharma ranks #161 out of 938 companies in the Drug Manufacturers industry, placing it in the top 17.2%.
Is Little Green Pharma's Gross Margin % too high?
Little Green Pharma's current Gross Margin % of 66.81% is near median its 10-year median of 64.90. Over the past 10 years, this metric has ranged from a low of 51.18 to a high of 82.47. The Drug Manufacturers industry median Gross Margin % is 48.44. Little Green Pharma's value of 66.81% is 37.9% above this industry median. Based on the distribution chart, Little Green Pharma ranks #161 out of 938 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers.
How does Little Green Pharma's Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Little Green Pharma ranks #161 out of 938 companies for Gross Margin %. This places Little Green Pharma in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.44. Little Green Pharma's value of 66.81% is 37.9% above this benchmark. Historically, Little Green Pharma's own Gross Margin % has ranged from 51.18 to 82.47 over the past decade. While the company's 10-year median is 64.90 vs. the industry median of 48.44, Little Green Pharma 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. Little Green Pharma's current Gross Margin % of 66.81% is 37.9% 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 Little Green Pharma 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. Little Green Pharma's current Gross Margin % is 66.81%, which is near median its own 10-year median of 64.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Little Green Pharma stock overvalued right now?
Based on GuruFocus' analysis, Little Green Pharma (ASX:LGP) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.17, compared to a current price of A$0.06 — trading 62.4% below its estimated fair value. The current Gross Margin % is 66.81%, which is near median its 10-year median of 64.90 and 37.9% above 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 Little Green Pharma (ASX:LGP), the current Gross Margin % is 66.81% 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.
Little Green Pharma Ltd is engaged in the vertically integrated medicinal cannabis business. The business activities of the company include cultivation, production, research and development, manufacturing, and distribution of medicinal cannabis products. The company's two key types of products available at Little Green Pharma are oils (which are ingested) and flowers (which are usually inhaled through vaporizing). It offers LGP-branded medicinal cannabis oil products in the Australian and European markets. The Group is organized into two operating segments: Australia and Europe (cultivation, production and distribution of cannabis products to Australian and European customers).
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