Aytu BioPharmaAYTU -1.81%40 Gross Margin % is 61.23% as of Mar. 2026, which is 2% below its 10-year median of 62.35. GuruFocus rates AYTU with a GF Score™ of 40/100 and a GF Value™ of $0.84 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 935 Drug Manufacturers companies, Aytu BioPharma ranks better than 75.51% 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
Aytu BioPharma had a gross margin of 61.23% 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.
Aytu BioPharma Gross Margin % Related Terms
Aytu BioPharma Gross Margin % Historical Data
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The historical data trend for Aytu BioPharma'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.
AYTU vs TXMD, KAYS, APUS: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Aytu BioPharma'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.
Aytu BioPharma Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aytu BioPharma's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aytu BioPharma'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.
Aytu BioPharma (AYTU) has a Gross Margin % of 61.23% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Aytu BioPharma and its competitors. This is near median its historical median of 62.35. Over the past decade, Aytu BioPharma's Gross Margin % has ranged from 43.99 to 75.26. According to the industry distribution chart, Aytu BioPharma ranks #229 out of 935 companies in the Drug Manufacturers industry, placing it in the top 24.5%.
Is Aytu BioPharma's Gross Margin % too high?
Aytu BioPharma's current Gross Margin % of 61.23% is near median its 10-year median of 62.35. Over the past 10 years, this metric has ranged from a low of 43.99 to a high of 75.26. The Drug Manufacturers industry median Gross Margin % is 48.54. Aytu BioPharma's value of 61.23% is 26.1% above this industry median. Based on the distribution chart, Aytu BioPharma ranks #229 out of 935 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Aytu BioPharma has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aytu BioPharma's Gross Margin % compare to TXMD and KAYS?
According to the Drug Manufacturers industry distribution chart, Aytu BioPharma ranks #229 out of 935 companies for Gross Margin %. This places Aytu BioPharma in the top 25% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.54. Aytu BioPharma's value of 61.23% is 26.1% above this benchmark. Historically, Aytu BioPharma's own Gross Margin % has ranged from 43.99 to 75.26 over the past decade. While the company's 10-year median is 62.35 vs. the industry median of 48.54, Aytu BioPharma 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. Aytu BioPharma's current Gross Margin % of 61.23% is 26.1% 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 Aytu BioPharma 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. Aytu BioPharma's current Gross Margin % is 61.23%, which is near median its own 10-year median of 62.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aytu BioPharma stock overvalued right now?
Based on GuruFocus' analysis, Aytu BioPharma (AYTU) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.84, compared to a current price of $2.17 — trading 158.3% above its estimated fair value. The current Gross Margin % is 61.23%, which is near median its 10-year median of 62.35 and 26.1% above the Drug Manufacturers industry median of 48.54. Aytu BioPharma's overall GF Score™ is 40/100 with 3 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 Aytu BioPharma (AYTU), the current Gross Margin % is 61.23% 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 Aytu BioPharma (AYTU) Overvalued in 2026?
Based on GuruFocus' analysis, Aytu BioPharma stock appears to be overvalued.
The current stock price of $2.17 is trading 158.3% above its estimated GF Value™ of $0.84.
GuruFocus considers Aytu BioPharma to be Significantly Overvalued.
Key valuation signals for AYTU:
Gross Margin %: 61.23% (near median its 10-year median of 62.35)
GF Value™: $0.84 vs. price of $2.17 (158.3% above fair value)
Industry Position: 26.1% above the Drug Manufacturers median (#229 of 935)
No single metric tells the full story. See the AYTU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aytu BioPharma Inc is a specialty pharmaceutical company with a commercial portfolio of prescription therapeutics and consumer health products. The company's primary prescription products treat attention deficit hyperactivity disorder and other common pediatric conditions. It is building a complementary therapeutic development pipeline, including a prospective treatment (AR101/enzastaurin) for vascular Ehlers-Danlos Syndrome, a rare genetic disease resulting in high morbidity and a significantly shortened lifespan. The company operates one business segment consisting of various prescription pharmaceutical products sold through third parties.
40GF Score
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