Cumberland PharmaceuticalsCPIX +12.50%32 Gross Margin % is 78.82% as of Mar. 2026, which is 2% below its 10-year median of 80.73. GuruFocus rates CPIX with a GF Score™ of 32/100 and a GF Value™ of $2.16 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 938 Drug Manufacturers companies, Cumberland Pharmaceuticals ranks better than 94.67% 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
Cumberland Pharmaceuticals had a gross margin of 78.82% 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.
Cumberland Pharmaceuticals Gross Margin % Related Terms
Cumberland Pharmaceuticals 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.
CPIX vs CTOR, INCR, BGM: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Cumberland Pharmaceuticals'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.
Cumberland Pharmaceuticals Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Cumberland Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cumberland Pharmaceuticals'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.
Cumberland Pharmaceuticals (CPIX) has a Gross Margin % of 78.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Cumberland Pharmaceuticals and its competitors. This is near median its historical median of 80.73. Over the past decade, Cumberland Pharmaceuticals' Gross Margin % has ranged from 75.51 to 85.03. According to the industry distribution chart, Cumberland Pharmaceuticals ranks #50 out of 938 companies in the Drug Manufacturers industry, placing it in the top 5.3%.
Is Cumberland Pharmaceuticals' Gross Margin % too high?
Cumberland Pharmaceuticals' current Gross Margin % of 78.82% is near median its 10-year median of 80.73. Over the past 10 years, this metric has ranged from a low of 75.51 to a high of 85.03. The Drug Manufacturers industry median Gross Margin % is 48.44. Cumberland Pharmaceuticals' value of 78.82% is 62.7% above this industry median. Based on the distribution chart, Cumberland Pharmaceuticals ranks #50 out of 938 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Cumberland Pharmaceuticals has a GF Score™ of 32/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cumberland Pharmaceuticals' Gross Margin % compare to CTOR and INCR?
According to the Drug Manufacturers industry distribution chart, Cumberland Pharmaceuticals ranks #50 out of 938 companies for Gross Margin %. This places Cumberland Pharmaceuticals in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.44. Cumberland Pharmaceuticals' value of 78.82% is 62.7% above this benchmark. Historically, Cumberland Pharmaceuticals' own Gross Margin % has ranged from 75.51 to 85.03 over the past decade. While the company's 10-year median is 80.73 vs. the industry median of 48.44, Cumberland Pharmaceuticals 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. Cumberland Pharmaceuticals's current Gross Margin % of 78.82% is 62.7% 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 Cumberland Pharmaceuticals 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. Cumberland Pharmaceuticals's current Gross Margin % is 78.82%, which is near median its own 10-year median of 80.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cumberland Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Cumberland Pharmaceuticals (CPIX) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.16, compared to a current price of $6.75 — trading 212.5% above its estimated fair value. The current Gross Margin % is 78.82%, which is near median its 10-year median of 80.73 and 62.7% above the Drug Manufacturers industry median of 48.44. Cumberland Pharmaceuticals' overall GF Score™ is 32/100 with 5 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 Cumberland Pharmaceuticals (CPIX), the current Gross Margin % is 78.82% 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 Cumberland Pharmaceuticals (CPIX) Overvalued in 2026?
Based on GuruFocus' analysis, Cumberland Pharmaceuticals stock appears to be overvalued.
The current stock price of $6.75 is trading 212.5% above its estimated GF Value™ of $2.16.
GuruFocus considers Cumberland Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for CPIX:
Gross Margin %: 78.82% (near median its 10-year median of 80.73)
GF Value™: $2.16 vs. price of $6.75 (212.5% above fair value)
Industry Position: 62.7% above the Drug Manufacturers median (#50 of 938)
No single metric tells the full story. See the CPIX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cumberland Pharmaceuticals Inc is a specialty pharmaceutical company focused on the acquisition, development, and commercialization of branded prescription pharmaceutical products. The Company has one operating segment, which is specialty pharmaceutical products. The company's target markets are hospital acute care, gastroenterology, rheumatology, and oncology. The firm promotes its approved products through its hospital, field, and oncology sales divisions in the United States and establishes a network of international partners to register and provide medicines to patients in their countries. Its brands include Acetadote, Caldolor, Kristalose, Sancuso, Vaprisol, and Vibativ. Geographically, the company generates revenue from China, South Korea, Russia, Mexico, Australia, and Saudi Arabia.
32GF Score
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