Peak ProcessingASX:PKP Gross Margin % is 49.86% as of Dec. 2025, which is 2% below its 10-year median of 50.84. The stock has 7 warning signs investors should review. Among 935 Drug Manufacturers companies, Peak Processing ranks better than 54.65% 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
Peak Processing had a gross margin of 49.86% 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.
Peak Processing Gross Margin % Related Terms
Peak Processing Gross Margin % Historical Data
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The historical data trend for Peak Processing'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, Peak Processing'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.
Peak Processing Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Peak Processing's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Peak Processing'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.
Peak Processing (ASX:PKP) has a Gross Margin % of 49.86% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Peak Processing and its competitors. This is near median its historical median of 50.84. Over the past decade, Peak Processing's Gross Margin % has ranged from 46.29 to 59.40. According to the industry distribution chart, Peak Processing ranks #424 out of 935 companies in the Drug Manufacturers industry, placing it in the top 45.3%.
Is Peak Processing's Gross Margin % too high?
Peak Processing's current Gross Margin % of 49.86% is near median its 10-year median of 50.84. Over the past 10 years, this metric has ranged from a low of 46.29 to a high of 59.40. The Drug Manufacturers industry median Gross Margin % is 48.54. Peak Processing's value of 49.86% is 2.7% above this industry median. Based on the distribution chart, Peak Processing ranks #424 out of 935 companies in the Drug Manufacturers industry, which is above the industry midpoint.
How does Peak Processing's Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Peak Processing ranks #424 out of 935 companies for Gross Margin %. This puts Peak Processing in the upper half of its industry. The industry median Gross Margin % is 48.54. Peak Processing's value of 49.86% is 2.7% above this benchmark. Historically, Peak Processing's own Gross Margin % has ranged from 46.29 to 59.40 over the past decade. While the company's 10-year median is 50.84 vs. the industry median of 48.54, Peak Processing 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 48.54, based on 935 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. Peak Processing's current Gross Margin % of 49.86% is 2.7% 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 Peak Processing and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Peak Processing's current Gross Margin % is 49.86%, which is near median its own 10-year median of 50.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Peak Processing stock overvalued right now?
Based on GuruFocus' analysis, Peak Processing (ASX:PKP) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.01, compared to a current price of A$0.02 — trading 70% above its estimated fair value. The current Gross Margin % is 49.86%, which is near median its 10-year median of 50.84 and 2.7% above the Drug Manufacturers industry median of 48.54. 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 Peak Processing (ASX:PKP), the current Gross Margin % is 49.86% 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.
Peak Processing Ltd is engaged in the manufacturing, sales, and distribution of cannabis-based medicines and recreational cannabis products. The products of the company includes cannabis-infused beverage, Hydrocarbon Extracts, oils, vapes, topicals, powder, infused flowers, and others. The company is also engaged in manufacturing services for cannabis products and blending and mixing, bulk filling, packaging, labelling and lab testing work.
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