Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co (FRA:FDY) 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
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co had a gross margin of 89.40% 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.
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Gross Margin % Related Terms
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co 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.
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Gross Margin % Chart
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Annual Data
For the Drug Manufacturers - Specialty & Generic subindustry, Shanghai Fudan-Zhangjiang Bio-Pharmaceutical 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.
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Gross Margin % vs Drug Manufacturers Industry
* 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.
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co (FRA:FDY) has a Gross Margin % of 89.40% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co and its competitors. This is near median its historical median of 91.78. Over the past decade, Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co's Gross Margin % has ranged from 88.99 to 92.90. According to the industry distribution chart, Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co ranks #22 out of 938 companies in the Drug Manufacturers industry, placing it in the top 2.3%.
Is Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co's Gross Margin % too high?
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co's current Gross Margin % of 89.40% is near median its 10-year median of 91.78. Over the past 10 years, this metric has ranged from a low of 88.99 to a high of 92.90. The Drug Manufacturers industry median Gross Margin % is 48.44. Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co's value of 89.40% is 84.6% above this industry median. Based on the distribution chart, Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co ranks #22 out of 938 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co's Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co ranks #22 out of 938 companies for Gross Margin %. This places Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co in the top 2% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.44. Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co's value of 89.40% is 84.6% above this benchmark. Historically, Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co's own Gross Margin % has ranged from 88.99 to 92.90 over the past decade. While the company's 10-year median is 91.78 vs. the industry median of 48.44, Shanghai Fudan-Zhangjiang Bio-Pharmaceutical 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. Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co's current Gross Margin % of 89.40% is 84.6% 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 Shanghai Fudan-Zhangjiang Bio-Pharmaceutical 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. Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co's current Gross Margin % is 89.40%, which is near median its own 10-year median of 91.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co stock overvalued right now?
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co (FRA:FDY) has a current Gross Margin % of 89.40%. The stock's GF Value™ is €0.24, compared to a current price of €0.25 — trading 3.3% above its estimated fair value. The current Gross Margin % is 89.40%, which is near median its 10-year median of 91.78 and 84.6% above the Drug Manufacturers industry median of 48.44. Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co's overall GF Score™ is 72/100 with 2 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 Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co (FRA:FDY), the current Gross Margin % is 89.40% 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 Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co (FRA:FDY) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co stock appears to be overvalued.
The current stock price of €0.25 is trading 3.3% above its estimated GF Value™ of €0.24.
Key valuation signals for FRA:FDY:
Gross Margin %: 89.40% (near median its 10-year median of 91.78)
GF Value™: €0.24 vs. price of €0.25 (3.3% above fair value)
Industry Position: 84.6% above the Drug Manufacturers median (#22 of 938)
No single metric tells the full story. See the FRA:FDY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Business Description
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd is engaged in the research, development, manufacturing, and sale of biopharmaceutical products. Its product portfolio includes ALA (Aminolevulinic acid Hydrochloride); FuMeiDa and Libord. The company has launched it's four types of photodynamic drugs in China market, namely hematoporphyrin, aminolevulinic acid hydrochloride, Verteporfin and Hemoporfin. Geographically, it derives revenue from Mainland China.
72GF Score
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