Frontage HoldingsFGHQF -3.57%58 Gross Margin % is 26.05% as of Dec. 2025, which is 27% below its 10-year median of 35.90. GuruFocus rates FGHQF with a GF Score™ of 58/100 and a GF Value™ of $0.21 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 732 Biotechnology companies, Frontage Holdings ranks worse than 79.37% 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
Frontage Holdings had a gross margin of 26.05% for the quarter that ended in Dec. 2025 => 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.
Frontage Holdings Gross Margin % Related Terms
Frontage Holdings Gross Margin % Historical Data
* Premium members only.
The historical data trend for Frontage Holdings'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.
FGHQF vs VRTX, REGN, ALNY: Gross Margin % Comparison
For the Biotechnology subindustry, Frontage Holdings'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.
Frontage Holdings Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Frontage Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Frontage Holdings'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.
Frontage Holdings (FGHQF) has a Gross Margin % of 26.05% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Frontage Holdings and its competitors. This is 27% below median its historical median of 35.90. Over the past decade, Frontage Holdings' Gross Margin % has ranged from 26.96 to 44.25. According to the industry distribution chart, Frontage Holdings ranks #581 out of 732 companies in the Biotechnology industry, placing it in the top 79.4%.
Is Frontage Holdings' Gross Margin % too high?
Frontage Holdings' current Gross Margin % of 26.05% is 27% below median its 10-year median of 35.90. Over the past 10 years, this metric has ranged from a low of 26.96 to a high of 44.25. The Biotechnology industry median Gross Margin % is 60.91. Frontage Holdings' value of 26.05% is 57.2% below this industry median. Based on the distribution chart, Frontage Holdings ranks #581 out of 732 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Frontage Holdings has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Frontage Holdings' Gross Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Frontage Holdings ranks #581 out of 732 companies for Gross Margin %. This places Frontage Holdings in the lower half of its industry. The industry median Gross Margin % is 60.91. Frontage Holdings' value of 26.05% is 57.2% below this benchmark. Historically, Frontage Holdings' own Gross Margin % has ranged from 26.96 to 44.25 over the past decade. While the company's 10-year median is 35.90 vs. the industry median of 60.91, Frontage Holdings has consistently been below 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 Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.91, based on 732 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. Frontage Holdings's current Gross Margin % of 26.05% is 57.2% below 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 Frontage Holdings and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frontage Holdings's current Gross Margin % is 26.05%, which is 27% below median its own 10-year median of 35.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frontage Holdings stock overvalued right now?
Based on GuruFocus' analysis, Frontage Holdings (FGHQF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.21, compared to a current price of $0.14 — trading 35.7% below its estimated fair value. The current Gross Margin % is 26.05%, which is 27% below median its 10-year median of 35.90 and 57.2% below the Biotechnology industry median of 60.91. Frontage Holdings' overall GF Score™ is 58/100 with 8 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 Frontage Holdings (FGHQF), the current Gross Margin % is 26.05% as of Dec. 2025. 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 Frontage Holdings (FGHQF) Overvalued in 2026?
Based on GuruFocus' analysis, Frontage Holdings stock appears to be undervalued.
The current stock price of $0.14 is trading 35.7% below its estimated GF Value™ of $0.21.
GuruFocus considers Frontage Holdings to be Possible Value Trap.
Key valuation signals for FGHQF:
Gross Margin %: 26.05% (27% below median its 10-year median of 35.90)
GF Value™: $0.21 vs. price of $0.14 (35.7% below fair value)
Industry Position: 57.2% below the Biotechnology median (#581 of 732)
No single metric tells the full story. See the FGHQF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frontage Holdings Corp provides laboratory and related services to pharmaceutical and agrochemical companies. Its segments include North America and Europe segment, including drug discovery, drug development, pharmaceutical product development and laboratory testing in the USA, Canada and Europe; and PRC segment, including drug discovery, drug development, pharmaceutical product development and laboratory testing in the PRC. It derives majority of the revenue from North America and Europe segment. Geographically majority of the revenue is derived from USA and Canada.
58GF Score
Get the complete analysis for FGHQF
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FGHQF has been successfully added to your 
