Knight TherapeuticsFRA:04K 73 Gross Margin % is 46.56% as of Mar. 2026, which is 1% below its 10-year median of 47.22. GuruFocus rates FRA:04K with a GF Score™ of 73/100 and a GF Value™ of €5.30. The stock has 6 warning signs investors should review. Among 935 Drug Manufacturers companies, Knight Therapeutics ranks worse than 54.55% 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
Knight Therapeutics had a gross margin of 46.56% 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.
Knight Therapeutics Gross Margin % Related Terms
Knight Therapeutics Gross Margin % Historical Data
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The historical data trend for Knight Therapeutics'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, Knight Therapeutics'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.
Knight Therapeutics Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Knight Therapeutics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Knight Therapeutics'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.
Knight Therapeutics (FRA:04K) has a Gross Margin % of 46.56% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Knight Therapeutics and its competitors. This is near median its historical median of 47.22. Over the past decade, Knight Therapeutics' Gross Margin % has ranged from 40.94 to 82.23. According to the industry distribution chart, Knight Therapeutics ranks #510 out of 935 companies in the Drug Manufacturers industry, placing it in the top 54.5%.
Is Knight Therapeutics' Gross Margin % too high?
Knight Therapeutics' current Gross Margin % of 46.56% is near median its 10-year median of 47.22. Over the past 10 years, this metric has ranged from a low of 40.94 to a high of 82.23. The Drug Manufacturers industry median Gross Margin % is 48.54. Knight Therapeutics' value of 46.56% is 4.1% below this industry median. Based on the distribution chart, Knight Therapeutics ranks #510 out of 935 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Knight Therapeutics has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Knight Therapeutics' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Knight Therapeutics ranks #510 out of 935 companies for Gross Margin %. This places Knight Therapeutics in the lower half of its industry. The industry median Gross Margin % is 48.54. Knight Therapeutics' value of 46.56% is 4.1% below this benchmark. Historically, Knight Therapeutics' own Gross Margin % has ranged from 40.94 to 82.23 over the past decade. While the company's 10-year median is 47.22 vs. the industry median of 48.54, Knight Therapeutics 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 935 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. Knight Therapeutics's current Gross Margin % of 46.56% is 4.1% 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 Knight Therapeutics and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Knight Therapeutics's current Gross Margin % is 46.56%, which is near median its own 10-year median of 47.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Knight Therapeutics stock overvalued right now?
Knight Therapeutics (FRA:04K) has a current Gross Margin % of 46.56%. The stock's GF Value™ is €5.30, compared to a current price of €5.80 — trading 9.4% above its estimated fair value. The current Gross Margin % is 46.56%, which is near median its 10-year median of 47.22 and 4.1% below the Drug Manufacturers industry median of 48.54. Knight Therapeutics' overall GF Score™ is 73/100 with 6 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 Knight Therapeutics (FRA:04K), the current Gross Margin % is 46.56% 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 Knight Therapeutics (FRA:04K) Overvalued in 2026?
Based on GuruFocus' analysis, Knight Therapeutics stock appears to be overvalued.
The current stock price of €5.80 is trading 9.4% above its estimated GF Value™ of €5.30.
Key valuation signals for FRA:04K:
Gross Margin %: 46.56% (near median its 10-year median of 47.22)
GF Value™: €5.30 vs. price of €5.80 (9.4% above fair value)
Industry Position: 4.1% below the Drug Manufacturers median (#510 of 935)
No single metric tells the full story. See the FRA:04K stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Knight Therapeutics Inc is a specialty and generic drug manufacturing company. The company's principal business activity is focused on developing, acquiring, in-licensing, out-licensing, marketing, and commercializing pharmaceuticalproducts. and distributing pharmaceutical products, consumer health products, and medical devices in Canada, Latin America and select international markets. The company finances other life sciences companies across the globe in order to generate interest income, strengthen relationships in the life sciences industry, and to secure product distribution rights. Geographically, the company generates revenue from Brazil, Canada, Colombia, Argentina, Mexico, Rest of LATAM, and Others, with the majority revenue generated from the Brazil region.
73GF Score
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