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Eton PharmaceuticalsETON +44.55%57 Gross Margin % is 67.61% as of Jun. 2026, which is 13% above its 10-year median of 60.01. GuruFocus rates ETON with a GF Score™ of 57/100 and a GF Value™ of $19.98 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 940 Drug Manufacturers companies, Eton Pharmaceuticals ranks better than 61.28% 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
Eton Pharmaceuticals had a gross margin of 67.61% for the quarter that ended in Jun. 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.
Eton Pharmaceuticals Gross Margin % Related Terms
Eton Pharmaceuticals Gross Margin % Historical Data
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The historical data trend for Eton Pharmaceuticals'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.
ETON vs COLL, ALVO, PCRX: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Eton 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.
Eton Pharmaceuticals Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Eton Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Eton 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.
Eton Pharmaceuticals (ETON) has a Gross Margin % of 67.61% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Eton Pharmaceuticals and its competitors. This is 13% above median its historical median of 60.01. According to the industry distribution chart, Eton Pharmaceuticals ranks #364 out of 940 companies in the Drug Manufacturers industry, placing it in the top 38.7%.
Is Eton Pharmaceuticals' Gross Margin % too high?
Eton Pharmaceuticals' current Gross Margin % of 67.61% is 13% above median its 10-year median of 60.01. The Drug Manufacturers industry median Gross Margin % is 48.44. Eton Pharmaceuticals' value of 67.61% is 39.6% above this industry median. Based on the distribution chart, Eton Pharmaceuticals ranks #364 out of 940 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Eton Pharmaceuticals has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Eton Pharmaceuticals' Gross Margin % compare to COLL and ALVO?
According to the Drug Manufacturers industry distribution chart, Eton Pharmaceuticals ranks #364 out of 940 companies for Gross Margin %. This puts Eton Pharmaceuticals in the upper half of its industry. The industry median Gross Margin % is 48.44. Eton Pharmaceuticals' value of 67.61% is 39.6% above this benchmark. While the company's 10-year median is 60.01 vs. the industry median of 48.44, Eton 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 940 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. Eton Pharmaceuticals's current Gross Margin % of 67.61% is 39.6% 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 Eton 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. Eton Pharmaceuticals's current Gross Margin % is 67.61%, which is 13% above median its own 10-year median of 60.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eton Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Eton Pharmaceuticals (ETON) is currently considered Significantly Overvalued. The stock's GF Value™ is $19.98, compared to a current price of $58.51 — trading 192.8% above its estimated fair value. The current Gross Margin % is 67.61%, which is 13% above median its 10-year median of 60.01 and 39.6% above the Drug Manufacturers industry median of 48.44. Eton Pharmaceuticals' overall GF Score™ is 57/100 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 Eton Pharmaceuticals (ETON), the current Gross Margin % is 67.61% as of Jun. 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 Eton Pharmaceuticals (ETON) Overvalued in 2026?
Based on GuruFocus' analysis, Eton Pharmaceuticals stock appears to be overvalued.
The current stock price of $58.51 is trading 192.8% above its estimated GF Value™ of $19.98.
GuruFocus considers Eton Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for ETON:
Gross Margin %: 67.61% (13% above median its 10-year median of 60.01)
GF Value™: $19.98 vs. price of $58.51 (192.8% above fair value)
Industry Position: 39.6% above the Drug Manufacturers median (#364 of 940)
No single metric tells the full story. See the ETON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eton Pharmaceuticals Inc is a United States based specialty pharmaceutical company. The company is engaged in developing and commercializing pharmaceutical products to fulfill an unmet patient need. It has eight commercial rare disease products, INCRELEX, ALKINDI SPRINKLE, KHINDIVITM, GALZIN, PKU GOLIKE, Carglumic Acid, Betaine Anhydrous and Nitisinone. It also has five additional product candidates in late-stage development: ET-600, Amglidia, ET-700, ET-800 and ZENEO hydrocortisone autoinjector.
57GF Score
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