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Beijing Tong Ren Tang Chinese Medicine Co (OTCPK:BJTRF) 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
Beijing Tong Ren Tang Chinese Medicine Co had a gross margin of 61.54% 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.
Beijing Tong Ren Tang Chinese Medicine Co Gross Margin % Related Terms
Beijing Tong Ren Tang Chinese Medicine Co Gross Margin % Historical Data
* 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.
Beijing Tong Ren Tang Chinese Medicine Co Gross Margin % Chart
Beijing Tong Ren Tang Chinese Medicine Co Annual Data
For the Drug Manufacturers - Specialty & Generic subindustry, Beijing Tong Ren Tang Chinese Medicine Co'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.
Beijing Tong Ren Tang Chinese Medicine Co Gross Margin % vs Drug Manufacturers Industry
* 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.
Beijing Tong Ren Tang Chinese Medicine Co (BJTRF) has a Gross Margin % of 61.54% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Beijing Tong Ren Tang Chinese Medicine Co and its competitors. This is 13% below median its historical median of 70.97. Over the past decade, Beijing Tong Ren Tang Chinese Medicine Co's Gross Margin % has ranged from 61.16 to 73.33. According to the industry distribution chart, Beijing Tong Ren Tang Chinese Medicine Co ranks #276 out of 942 companies in the Drug Manufacturers industry, placing it in the top 29.3%.
Is Beijing Tong Ren Tang Chinese Medicine Co's Gross Margin % too high?
Beijing Tong Ren Tang Chinese Medicine Co's current Gross Margin % of 61.54% is 13% below median its 10-year median of 70.97. Over the past 10 years, this metric has ranged from a low of 61.16 to a high of 73.33. The Drug Manufacturers industry median Gross Margin % is 48.54. Beijing Tong Ren Tang Chinese Medicine Co's value of 61.54% is 26.8% above this industry median. Based on the distribution chart, Beijing Tong Ren Tang Chinese Medicine Co ranks #276 out of 942 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Beijing Tong Ren Tang Chinese Medicine Co has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Beijing Tong Ren Tang Chinese Medicine Co's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Beijing Tong Ren Tang Chinese Medicine Co ranks #276 out of 942 companies for Gross Margin %. This puts Beijing Tong Ren Tang Chinese Medicine Co in the upper half of its industry. The industry median Gross Margin % is 48.54. Beijing Tong Ren Tang Chinese Medicine Co's value of 61.54% is 26.8% above this benchmark. Historically, Beijing Tong Ren Tang Chinese Medicine Co's own Gross Margin % has ranged from 61.16 to 73.33 over the past decade. While the company's 10-year median is 70.97 vs. the industry median of 48.54, Beijing Tong Ren Tang Chinese Medicine Co 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 942 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. Beijing Tong Ren Tang Chinese Medicine Co's current Gross Margin % of 61.54% is 26.8% 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 Beijing Tong Ren Tang Chinese Medicine Co 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. Beijing Tong Ren Tang Chinese Medicine Co's current Gross Margin % is 61.54%, which is 13% below median its own 10-year median of 70.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beijing Tong Ren Tang Chinese Medicine Co stock overvalued right now?
Beijing Tong Ren Tang Chinese Medicine Co (BJTRF) has a current Gross Margin % of 61.54%. The stock's GF Value™ is $0.91, compared to a current price of $0.65 — trading 28.7% below its estimated fair value. The current Gross Margin % is 61.54%, which is 13% below median its 10-year median of 70.97 and 26.8% above the Drug Manufacturers industry median of 48.54. Beijing Tong Ren Tang Chinese Medicine Co's overall GF Score™ is 89/100 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 Beijing Tong Ren Tang Chinese Medicine Co (BJTRF), the current Gross Margin % is 61.54% 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.
Is Beijing Tong Ren Tang Chinese Medicine Co (BJTRF) Overvalued in 2026?
Based on GuruFocus' analysis, Beijing Tong Ren Tang Chinese Medicine Co stock appears to be undervalued.
The current stock price of $0.65 is trading 28.7% below its estimated GF Value™ of $0.91.
Key valuation signals for BJTRF:
Gross Margin %: 61.54% (13% below median its 10-year median of 70.97)
GF Value™: $0.91 vs. price of $0.65 (28.7% below fair value)
Industry Position: 26.8% above the Drug Manufacturers median (#276 of 942)
No single metric tells the full story. See the BJTRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Beijing Tong Ren Tang Chinese Medicine Co Business Description
Beijing Tong Ren Tang Chinese Medicine Co Ltd is a pharmaceutical retailer that specializes in Chinese medicine operating in three segments; Hong Kong includes the sale of Chinese medicine products and healthcare products and the provision of Chinese medical consultation and treatments through retail and wholesale of Chinese medicine products and healthcare products; Chinese Mainland (PRC, but excluding Hong Kong, Macao, and Taiwan) includes wholesale of healthcare products in Chinese Mainland and the sole distributor of Tong Ren Tang branded products of Tong Ren Tang Technologies and Tong Ren Tang Ltd; and Overseas includes retail and wholesale of Chinese medicine products and healthcare products and provision of Chinese medical consultation and treatments.
89GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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