Guangzhou Baiyunshan Pharmaceutical Holdings Co (FRA:GU5) 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
Guangzhou Baiyunshan Pharmaceutical Holdings Co had a gross margin of 20.31% for the quarter that ended in Mar. 2026 => 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.
Guangzhou Baiyunshan Pharmaceutical Holdings Co Gross Margin % Related Terms
Guangzhou Baiyunshan Pharmaceutical Holdings 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.
Guangzhou Baiyunshan Pharmaceutical Holdings Co Gross Margin % Chart
Guangzhou Baiyunshan Pharmaceutical Holdings Co Annual Data
FRA:GU5 vs MCK, CAH, COR: Gross Margin % Comparison
For the Medical Distribution subindustry, Guangzhou Baiyunshan Pharmaceutical Holdings 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.
Guangzhou Baiyunshan Pharmaceutical Holdings Co Gross Margin % vs Medical Distribution 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.
Guangzhou Baiyunshan Pharmaceutical Holdings Co (FRA:GU5) has a Gross Margin % of 20.31% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Guangzhou Baiyunshan Pharmaceutical Holdings Co and its competitors. This is near median its historical median of 18.81. Over the past decade, Guangzhou Baiyunshan Pharmaceutical Holdings Co's Gross Margin % has ranged from 16.22 to 37.66. According to the industry distribution chart, Guangzhou Baiyunshan Pharmaceutical Holdings Co ranks #55 out of 116 companies in the Medical Distribution industry, placing it in the top 47.4%.
Is Guangzhou Baiyunshan Pharmaceutical Holdings Co's Gross Margin % too high?
Guangzhou Baiyunshan Pharmaceutical Holdings Co's current Gross Margin % of 20.31% is near median its 10-year median of 18.81. Over the past 10 years, this metric has ranged from a low of 16.22 to a high of 37.66. The Medical Distribution industry median Gross Margin % is 14.90. Guangzhou Baiyunshan Pharmaceutical Holdings Co's value of 20.31% is 36.3% above this industry median. Based on the distribution chart, Guangzhou Baiyunshan Pharmaceutical Holdings Co ranks #55 out of 116 companies in the Medical Distribution industry, which is above the industry midpoint. Overall, Guangzhou Baiyunshan Pharmaceutical Holdings Co has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Guangzhou Baiyunshan Pharmaceutical Holdings Co's Gross Margin % compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, Guangzhou Baiyunshan Pharmaceutical Holdings Co ranks #55 out of 116 companies for Gross Margin %. This puts Guangzhou Baiyunshan Pharmaceutical Holdings Co in the upper half of its industry. The industry median Gross Margin % is 14.90. Guangzhou Baiyunshan Pharmaceutical Holdings Co's value of 20.31% is 36.3% above this benchmark. Historically, Guangzhou Baiyunshan Pharmaceutical Holdings Co's own Gross Margin % has ranged from 16.22 to 37.66 over the past decade. While the company's 10-year median is 18.81 vs. the industry median of 14.90, Guangzhou Baiyunshan Pharmaceutical Holdings 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 Medical Distribution company?
The median Gross Margin % among Medical Distribution companies is 14.90, based on 116 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. Guangzhou Baiyunshan Pharmaceutical Holdings Co's current Gross Margin % of 20.31% is 36.3% 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 Guangzhou Baiyunshan Pharmaceutical Holdings Co and its competitors. For the Medical Distribution industry, the median Gross Margin % is 14.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangzhou Baiyunshan Pharmaceutical Holdings Co's current Gross Margin % is 20.31%, which is near median its own 10-year median of 18.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangzhou Baiyunshan Pharmaceutical Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Guangzhou Baiyunshan Pharmaceutical Holdings Co (FRA:GU5) is currently considered Significantly Undervalued. The stock's GF Value™ is €2.30, compared to a current price of €1.58 — trading 31.3% below its estimated fair value. The current Gross Margin % is 20.31%, which is near median its 10-year median of 18.81 and 36.3% above the Medical Distribution industry median of 14.90. Guangzhou Baiyunshan Pharmaceutical Holdings Co's overall GF Score™ is 68/100 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 Guangzhou Baiyunshan Pharmaceutical Holdings Co (FRA:GU5), the current Gross Margin % is 20.31% 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 Guangzhou Baiyunshan Pharmaceutical Holdings Co (FRA:GU5) Overvalued in 2026?
Based on GuruFocus' analysis, Guangzhou Baiyunshan Pharmaceutical Holdings Co stock appears to be undervalued.
The current stock price of €1.58 is trading 31.3% below its estimated GF Value™ of €2.30.
GuruFocus considers Guangzhou Baiyunshan Pharmaceutical Holdings Co to be Significantly Undervalued.
Key valuation signals for FRA:GU5:
Gross Margin %: 20.31% (near median its 10-year median of 18.81)
GF Value™: €2.30 vs. price of €1.58 (31.3% below fair value)
Industry Position: 36.3% above the Medical Distribution median (#55 of 116)
No single metric tells the full story. See the FRA:GU5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangzhou Baiyunshan Pharmaceutical Holdings Co Business Description
Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd is engaged in the pharmaceutical and healthcare industry, focusing on the development of a full industrial chain covering research, manufacturing, and distribution. The group operates through five reportable segments. The Modern Chinese Medicine segment involves the R&D, manufacturing, and sale of proprietary Chinese and natural medicines. The Chemical Pharmaceutical Technology segment focuses on chemical drugs, APIs, and intermediates. The Natural Beverages segment produces and sells health-oriented beverage products. The Pharmaceutical Commerce segment is engaged in the wholesale, retail, and import/export of medicines and medical devices. The Other Segments include biotechnology innovation, consumer health, and medical services.
68GF Score
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