Eisai CoESALF 74 Gross Margin % is 74.68% as of Mar. 2026, which is 1% below its 10-year median of 75.57. GuruFocus rates ESALF with a GF Score™ of 74/100 and a GF Value™ of $36.60 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 938 Drug Manufacturers companies, Eisai Co ranks better than 89.45% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Eisai Co's Gross Profit for the
three
months ended in Mar. 2026 was $967 Mil. Eisai Co's Revenue for the
three
months ended in Mar. 2026 was $1,295 Mil. Therefore, Eisai Co's Gross Margin % for the quarter that ended in Mar. 2026 was 74.68%.
The historical rank and industry rank for Eisai Co's Gross Margin % or its related term are showing as below:
ESALF'
s Gross Margin % Range Over the Past 10 Years
Min: 63.66 Med: 75.57 Max: 79.06
Current: 76.83
During the past 13 years, the highestGross Margin % of Eisai Co was 79.06%. The lowest was 63.66%. And the median was 75.57%.
ESALF's Gross Margin % is ranked better than 89.45% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.44
vs ESALF: 76.83
Eisai Co had a gross margin of 74.68% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Eisai Co was 0.60% per year.
Eisai Co (OTCPK:ESALF) 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
Eisai Co had a gross margin of 74.68% 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.
Eisai Co Gross Margin % Related Terms
Eisai Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Eisai Co'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Eisai 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.
Eisai Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Eisai Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Eisai Co'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.
Eisai Co (ESALF) has a Gross Margin % of 74.68% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Eisai Co and its competitors. This is near median its historical median of 75.57. Over the past decade, Eisai Co's Gross Margin % has ranged from 63.66 to 79.06. According to the industry distribution chart, Eisai Co ranks #99 out of 938 companies in the Drug Manufacturers industry, placing it in the top 10.6%.
Is Eisai Co's Gross Margin % too high?
Eisai Co's current Gross Margin % of 74.68% is near median its 10-year median of 75.57. Over the past 10 years, this metric has ranged from a low of 63.66 to a high of 79.06. The Drug Manufacturers industry median Gross Margin % is 48.44. Eisai Co's value of 74.68% is 54.2% above this industry median. Based on the distribution chart, Eisai Co ranks #99 out of 938 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Eisai Co has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eisai Co's Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Eisai Co ranks #99 out of 938 companies for Gross Margin %. This places Eisai Co in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.44. Eisai Co's value of 74.68% is 54.2% above this benchmark. Historically, Eisai Co's own Gross Margin % has ranged from 63.66 to 79.06 over the past decade. While the company's 10-year median is 75.57 vs. the industry median of 48.44, Eisai 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 48.44, 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. Eisai Co's current Gross Margin % of 74.68% is 54.2% 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 Eisai Co 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. Eisai Co's current Gross Margin % is 74.68%, which is near median its own 10-year median of 75.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eisai Co stock overvalued right now?
Based on GuruFocus' analysis, Eisai Co (ESALF) is currently considered Significantly Undervalued. The stock's GF Value™ is $36.60, compared to a current price of $25.00 — trading 31.7% below its estimated fair value. The current Gross Margin % is 74.68%, which is near median its 10-year median of 75.57 and 54.2% above the Drug Manufacturers industry median of 48.44. Eisai Co's overall GF Score™ is 74/100 with 7 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 Eisai Co (ESALF), the current Gross Margin % is 74.68% 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 Eisai Co (ESALF) Overvalued in 2026?
Based on GuruFocus' analysis, Eisai Co stock appears to be undervalued.
The current stock price of $25.00 is trading 31.7% below its estimated GF Value™ of $36.60.
GuruFocus considers Eisai Co to be Significantly Undervalued.
Key valuation signals for ESALF:
Gross Margin %: 74.68% (near median its 10-year median of 75.57)
GF Value™: $36.60 vs. price of $25.00 (31.7% below fair value)
Industry Position: 54.2% above the Drug Manufacturers median (#99 of 938)
No single metric tells the full story. See the ESALF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eisai Co Ltd is a specialty and generic drug manufacturing company. The company's business consists of research and development, manufacturing, sales, import, and export of pharmaceuticals. The pharmaceutical business is categorized by region, including East Asia & Global South; Europe, Middle East, Africa, Russia, Oceania (EMEA); Americas; China; and Japan. The company also reports a consumer healthcare business for Japan. The vast majority of the company's revenue is derived from its American pharmaceutical business, followed by its Japanese pharmaceuticals segment. The company utilizes licensing strategies in order to expand its research, development, manufacturing, and marketing capabilities.
74GF Score
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