CSPC Pharmaceutical Group (FRA:CVGU) 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
CSPC Pharmaceutical Group had a gross margin of 65.57% for the quarter that ended in Dec. 2025 => 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.
CSPC Pharmaceutical Group Gross Margin % Related Terms
CSPC Pharmaceutical Group Gross Margin % Historical Data
* 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.
FRA:CVGU vs LLY, JNJ, ABBV: Gross Margin % Comparison
For the Drug Manufacturers - General subindustry, CSPC Pharmaceutical Group'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.
CSPC Pharmaceutical Group Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, CSPC Pharmaceutical Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CSPC Pharmaceutical Group'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.
CSPC Pharmaceutical Group (FRA:CVGU) has a Gross Margin % of 65.57% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on CSPC Pharmaceutical Group and its competitors. This is near median its historical median of 70.24. Over the past decade, CSPC Pharmaceutical Group's Gross Margin % has ranged from 51.00 to 75.84. According to the industry distribution chart, CSPC Pharmaceutical Group ranks #220 out of 935 companies in the Drug Manufacturers industry, placing it in the top 23.5%.
Is CSPC Pharmaceutical Group's Gross Margin % too high?
CSPC Pharmaceutical Group's current Gross Margin % of 65.57% is near median its 10-year median of 70.24. Over the past 10 years, this metric has ranged from a low of 51.00 to a high of 75.84. The Drug Manufacturers industry median Gross Margin % is 48.54. CSPC Pharmaceutical Group's value of 65.57% is 35.1% above this industry median. Based on the distribution chart, CSPC Pharmaceutical Group ranks #220 out of 935 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, CSPC Pharmaceutical Group has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does CSPC Pharmaceutical Group's Gross Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, CSPC Pharmaceutical Group ranks #220 out of 935 companies for Gross Margin %. This places CSPC Pharmaceutical Group in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.54. CSPC Pharmaceutical Group's value of 65.57% is 35.1% above this benchmark. Historically, CSPC Pharmaceutical Group's own Gross Margin % has ranged from 51.00 to 75.84 over the past decade. While the company's 10-year median is 70.24 vs. the industry median of 48.54, CSPC Pharmaceutical Group 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 48.54, 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. CSPC Pharmaceutical Group's current Gross Margin % of 65.57% is 35.1% 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 CSPC Pharmaceutical Group 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. CSPC Pharmaceutical Group's current Gross Margin % is 65.57%, which is near median its own 10-year median of 70.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CSPC Pharmaceutical Group stock overvalued right now?
CSPC Pharmaceutical Group (FRA:CVGU) has a current Gross Margin % of 65.57%. The stock's GF Value™ is €2.63, compared to a current price of €2.68 — trading 1.9% above its estimated fair value. The current Gross Margin % is 65.57%, which is near median its 10-year median of 70.24 and 35.1% above the Drug Manufacturers industry median of 48.54. CSPC Pharmaceutical Group's overall GF Score™ is 87/100 with 4 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 CSPC Pharmaceutical Group (FRA:CVGU), the current Gross Margin % is 65.57% 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 CSPC Pharmaceutical Group (FRA:CVGU) Overvalued in 2026?
Based on GuruFocus' analysis, CSPC Pharmaceutical Group stock appears to be overvalued.
The current stock price of €2.68 is trading 1.9% above its estimated GF Value™ of €2.63.
Key valuation signals for FRA:CVGU:
Gross Margin %: 65.57% (near median its 10-year median of 70.24)
GF Value™: €2.63 vs. price of €2.68 (1.9% above fair value)
Industry Position: 35.1% above the Drug Manufacturers median (#220 of 935)
No single metric tells the full story. See the FRA:CVGU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CSPC Pharmaceutical Group LTD is engaged in the manufacture and sale of pharmaceutical products. The group's segments include: Finished drugs, consisting research and development, manufacture and sale of pharmaceutical products and license fee income; Bulk products, that manufacture and sale of vitamin C, and antibiotic products in bulk powder form; and Functional food and others, that manufacture and sale of functional food products (including caffeine food additives, anhydrous glucose, acarbose and vitamin C buccal tablets), provision of healthcare service and others. It derives maximum revenue from Finished Products segments. Geographically, the company operates in Chinese Mainland, which Chinese Mainland generates maximum revenue; Other Asian regions; Europe; North America; and Others.
87GF Score
Get the complete analysis for FRA:CVGU
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
FRA:CVGU has been successfully added to your 
