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
Lee's Pharmaceutical Holdings had a gross margin of 49.85% 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.
Lee's Pharmaceutical Holdings Gross Margin % Related Terms
Lee's Pharmaceutical Holdings 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Lee's Pharmaceutical 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.
Lee's Pharmaceutical Holdings Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Lee's Pharmaceutical Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lee's Pharmaceutical 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.
Lee's Pharmaceutical Holdings (FRA:L1PA) has a Gross Margin % of 49.85% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Lee's Pharmaceutical Holdings and its competitors. This is 22% below median its historical median of 63.94. Over the past decade, Lee's Pharmaceutical Holdings' Gross Margin % has ranged from 50.81 to 71.87. According to the industry distribution chart, Lee's Pharmaceutical Holdings ranks #440 out of 937 companies in the Drug Manufacturers industry, placing it in the top 47%.
Is Lee's Pharmaceutical Holdings' Gross Margin % too high?
Lee's Pharmaceutical Holdings' current Gross Margin % of 49.85% is 22% below median its 10-year median of 63.94. Over the past 10 years, this metric has ranged from a low of 50.81 to a high of 71.87. The Drug Manufacturers industry median Gross Margin % is 48.46. Lee's Pharmaceutical Holdings' value of 49.85% is 2.9% above this industry median. Based on the distribution chart, Lee's Pharmaceutical Holdings ranks #440 out of 937 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Lee's Pharmaceutical Holdings has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Lee's Pharmaceutical Holdings' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Lee's Pharmaceutical Holdings ranks #440 out of 937 companies for Gross Margin %. This puts Lee's Pharmaceutical Holdings in the upper half of its industry. The industry median Gross Margin % is 48.46. Lee's Pharmaceutical Holdings' value of 49.85% is 2.9% above this benchmark. Historically, Lee's Pharmaceutical Holdings' own Gross Margin % has ranged from 50.81 to 71.87 over the past decade. While the company's 10-year median is 63.94 vs. the industry median of 48.46, Lee's Pharmaceutical Holdings 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 48.46, based on 937 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. Lee's Pharmaceutical Holdings's current Gross Margin % of 49.85% is 2.9% 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 Lee's Pharmaceutical Holdings and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lee's Pharmaceutical Holdings's current Gross Margin % is 49.85%, which is 22% below median its own 10-year median of 63.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lee's Pharmaceutical Holdings stock overvalued right now?
Lee's Pharmaceutical Holdings (FRA:L1PA) has a current Gross Margin % of 49.85%. The stock's GF Value™ is €0.17, compared to a current price of €0.11 — trading 35.9% below its estimated fair value. The current Gross Margin % is 49.85%, which is 22% below median its 10-year median of 63.94 and 2.9% above the Drug Manufacturers industry median of 48.46. Lee's Pharmaceutical Holdings' overall GF Score™ is 72/100 with 5 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 Lee's Pharmaceutical Holdings (FRA:L1PA), the current Gross Margin % is 49.85% 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 Lee's Pharmaceutical Holdings (FRA:L1PA) Overvalued in 2026?
Based on GuruFocus' analysis, Lee's Pharmaceutical Holdings stock appears to be undervalued.
The current stock price of €0.11 is trading 35.9% below its estimated GF Value™ of €0.17.
Key valuation signals for FRA:L1PA:
Gross Margin %: 49.85% (22% below median its 10-year median of 63.94)
GF Value™: €0.17 vs. price of €0.11 (35.9% below fair value)
Industry Position: 2.9% above the Drug Manufacturers median (#440 of 937)
No single metric tells the full story. See the FRA:L1PA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lee's Pharmaceutical Holdings Business Description
Lee's Pharmaceutical Holdings Ltd is a research-driven and market-oriented biopharmaceutical company. Along with its subsidiaries, it develops, manufactures, sells, and markets pharmaceutical products. It focuses on cardiovascular, women's health, pediatrics, rare diseases, oncology, dermatology, and obstetrics. The company's reportable segments are; Proprietary and generic products which generates key revenue; and Licensed-in products. The Proprietary Products portfolio includes Livaracine, Yallaferon, Slounase, and Nadroparin Calcium Injection. Its Licensed-in Products include Centraxal Plus, Dicoflor, Ferplex, and Natulan among others. Geographically, the company generates a majority of its revenue from the People's Republic of China.
72GF Score
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