CelgeneBUE:CELG 10 Gross Margin % is 96.31% as of Sep. 2019, which is 2% above its 10-year median of 94.87. GuruFocus rates BUE:CELG with a GF Score™ of 10/100. The stock has 1 warning sign investors should review.
Gross Margin % is calculated as gross profit divided by its revenue. Celgene's Gross Profit for the
three
months ended in Sep. 2019 was ARS243,445.87 Mil. Celgene's Revenue for the
three
months ended in Sep. 2019 was ARS252,785.52 Mil. Therefore, Celgene's Gross Margin % for the quarter that ended in Sep. 2019 was 96.31%.
The historical rank and industry rank for Celgene's Gross Margin % or its related term are showing as below:
BUE:CELG'
s Gross Margin % Range Over the Past 10 Years
Min: 91.2 Med: 94.87 Max: 96.45
Current: 96.31
During the past 13 years, the highestGross Margin % of Celgene was 96.45%. The lowest was 91.20%. And the median was 94.87%.
BUE:CELG's Gross Margin % is not ranked
in the Drug Manufacturers industry.
Industry Median: 48.54
vs BUE:CELG: 96.31
Celgene had a gross margin of 96.31% for the quarter that ended in Sep. 2019 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Celgene was 0.40% per year.
Celgene (BUE:CELG) 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
Celgene had a gross margin of 96.31% for the quarter that ended in Sep. 2019 => 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.
Celgene Gross Margin % Related Terms
Celgene Gross Margin % Historical Data
* Premium members only.
The historical data trend for Celgene'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.
BUE:CELG vs GILD, BIIB, ACT: Gross Margin % Comparison
For the Drug Manufacturers - General subindustry, Celgene'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.
Celgene Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Celgene's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Celgene'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.
Celgene (BUE:CELG) has a Gross Margin % of 96.31% as of Sep. 2019. Gross margin is the ratio of total gross profit to net sales. View historical data on Celgene and its competitors. This is near median its historical median of 94.87. Over the past decade, Celgene's Gross Margin % has ranged from 91.20 to 96.45.
Is Celgene's Gross Margin % too high?
Celgene's current Gross Margin % of 96.31% is near median its 10-year median of 94.87. Over the past 10 years, this metric has ranged from a low of 91.20 to a high of 96.45. The Drug Manufacturers industry median Gross Margin % is 48.54. Celgene's value of 96.31% is 98.4% above this industry median. Overall, Celgene has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Celgene's Gross Margin % compare to GILD and BIIB?
Celgene's Gross Margin % of 96.31% can be compared against companies in the Drug Manufacturers industry. The industry median Gross Margin % is 48.54. Celgene's value of 96.31% is 98.4% above this benchmark. Historically, Celgene's own Gross Margin % has ranged from 91.20 to 96.45 over the past decade. While the company's 10-year median is 94.87 vs. the industry median of 48.54, Celgene 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 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. Celgene's current Gross Margin % of 96.31% is 98.4% 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 Celgene 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. Celgene's current Gross Margin % is 96.31%, which is near median its own 10-year median of 94.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Celgene stock overvalued right now?
Celgene (BUE:CELG) has a current Gross Margin % of 96.31%. The current Gross Margin % is 96.31%, which is near median its 10-year median of 94.87 and 98.4% above the Drug Manufacturers industry median of 48.54. Celgene's overall GF Score™ is 10/100 with 1 warning sign 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 Celgene (BUE:CELG), the current Gross Margin % is 96.31% as of Sep. 2019. 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.
Celgene is a biopharmaceutical firm that discovers, develops, and markets therapeutics for the treatment of cancer and immunological diseases. Celgene markets Thalomid and Pomalyst to treat multiple myeloma and Revlimid, a less toxic thalidomide derivative, to treat myelodysplastic syndromes, multiple myeloma, and mantle cell lymphoma. Acquisitions have brought MDS drug Vidaza, T-cell lymphoma drug Istodax, and cancer drug Abraxane. The firm's first immunology drug, Otezla, was approved in the U.S. in 2014. Pending acquisitions of Juno and Impact bring additional drugs for Celgene's blood cancer pipeline.
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