The historical rank and industry rank for Active Fine Chemicals's Gross Margin % or its related term are showing as below:
DHA:ACTIVEFINE's Gross Margin % is not ranked *
in the Chemicals industry.
Industry Median: 23.38 * Ranked among companies with meaningful Gross Margin % only.
Active Fine Chemicals had a gross margin of 29.40% for the quarter that ended in Mar. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Active Fine Chemicals was 0.00% per year.
Active Fine Chemicals (DHA:ACTIVEFINE) 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
Active Fine Chemicals had a gross margin of 29.40% for the quarter that ended in Mar. 2023 => Competition eroding margins
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.
Active Fine Chemicals Gross Margin % Related Terms
Active Fine Chemicals Gross Margin % Historical Data
* Premium members only.
The historical data trend for Active Fine Chemicals'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.
DHA:ACTIVEFINE vs DOW, CE: Gross Margin % Comparison
For the Chemicals subindustry, Active Fine Chemicals'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.
Active Fine Chemicals Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Active Fine Chemicals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Active Fine Chemicals'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.
Active Fine Chemicals (DHA:ACTIVEFINE) has a Gross Margin % of 29.40% as of Mar. 2023. Gross margin is the ratio of total gross profit to net sales. View historical data on Active Fine Chemicals and its competitors.
Is Active Fine Chemicals' Gross Margin % too high?
Active Fine Chemicals' current Gross Margin % is 29.40%. The Chemicals industry median Gross Margin % is 23.38. Active Fine Chemicals' value of 29.40% is 25.7% above this industry median. Overall, Active Fine Chemicals has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Active Fine Chemicals' Gross Margin % compare to DOW and CE?
Active Fine Chemicals' Gross Margin % of 29.40% can be compared against companies in the Chemicals industry. The industry median Gross Margin % is 23.38. Active Fine Chemicals' value of 29.40% is 25.7% above this benchmark. 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.38, based on 1,565 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. Active Fine Chemicals's current Gross Margin % of 29.40% is 25.7% 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 Active Fine Chemicals and its competitors. For the Chemicals industry, the median Gross Margin % is 23.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Active Fine Chemicals's current Gross Margin % is 29.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Active Fine Chemicals stock overvalued right now?
Active Fine Chemicals (DHA:ACTIVEFINE) has a current Gross Margin % of 29.40%. The current Gross Margin % is 29.40% and 25.7% above the Chemicals industry median of 23.38. Active Fine Chemicals' overall GF Score™ is 10/100. 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 Active Fine Chemicals (DHA:ACTIVEFINE), the current Gross Margin % is 29.40% as of Mar. 2023. 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.
Active Fine Chemicals Ltd is a Bangladesh based chemical company engaged in manufacturing active pharmaceutical ingredients and laboratory reagents. Its product offerings include azithromycin dihydrate, erythromycin ethyl succinate, erythromycin stearate, pantoprazole sodium sesquihydrate, venlafaxine HCL, sitagliptin phosphate monohydrate, and pregabalin. While it also manufactures laboratory reagents including HPLC Grade solvents, solvents, and powder reagents.
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