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Sonoma PharmaceuticalsFRA:O8Z 34 Gross Margin % is 39.23% as of Mar. 2026, which is 3% above its 10-year median of 38.11. GuruFocus rates FRA:O8Z with a GF Score™ of 34/100 and a GF Value™ of €6.04. The stock has 4 warning signs investors should review. Among 942 Drug Manufacturers companies, Sonoma Pharmaceuticals ranks worse than 68.47% 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
Sonoma Pharmaceuticals had a gross margin of 39.23% 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.
Sonoma Pharmaceuticals Gross Margin % Related Terms
Sonoma Pharmaceuticals Gross Margin % Historical Data
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The historical data trend for Sonoma Pharmaceuticals'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.
FRA:O8Z vs YCBD, CVSI, AKAN: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Sonoma Pharmaceuticals'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.
Sonoma Pharmaceuticals Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sonoma Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sonoma Pharmaceuticals'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.
Sonoma Pharmaceuticals (FRA:O8Z) has a Gross Margin % of 39.23% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sonoma Pharmaceuticals and its competitors. This is near median its historical median of 38.11. Over the past decade, Sonoma Pharmaceuticals' Gross Margin % has ranged from 31.62 to 46.81. According to the industry distribution chart, Sonoma Pharmaceuticals ranks #645 out of 942 companies in the Drug Manufacturers industry, placing it in the top 68.5%.
Is Sonoma Pharmaceuticals' Gross Margin % too high?
Sonoma Pharmaceuticals' current Gross Margin % of 39.23% is near median its 10-year median of 38.11. Over the past 10 years, this metric has ranged from a low of 31.62 to a high of 46.81. The Drug Manufacturers industry median Gross Margin % is 48.54. Sonoma Pharmaceuticals' value of 39.23% is 19.2% below this industry median. Based on the distribution chart, Sonoma Pharmaceuticals ranks #645 out of 942 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Sonoma Pharmaceuticals has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Sonoma Pharmaceuticals' Gross Margin % compare to YCBD and CVSI?
According to the Drug Manufacturers industry distribution chart, Sonoma Pharmaceuticals ranks #645 out of 942 companies for Gross Margin %. This places Sonoma Pharmaceuticals in the lower half of its industry. The industry median Gross Margin % is 48.54. Sonoma Pharmaceuticals' value of 39.23% is 19.2% below this benchmark. Historically, Sonoma Pharmaceuticals' own Gross Margin % has ranged from 31.62 to 46.81 over the past decade. While the company's 10-year median is 38.11 vs. the industry median of 48.54, Sonoma Pharmaceuticals 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 942 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. Sonoma Pharmaceuticals's current Gross Margin % of 39.23% is 19.2% 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 Sonoma Pharmaceuticals 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. Sonoma Pharmaceuticals's current Gross Margin % is 39.23%, which is near median its own 10-year median of 38.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonoma Pharmaceuticals stock overvalued right now?
Sonoma Pharmaceuticals (FRA:O8Z) has a current Gross Margin % of 39.23%. The stock's GF Value™ is €6.04, compared to a current price of €2.72 — trading 55% below its estimated fair value. The current Gross Margin % is 39.23%, which is near median its 10-year median of 38.11 and 19.2% below the Drug Manufacturers industry median of 48.54. Sonoma Pharmaceuticals' overall GF Score™ is 34/100 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 Sonoma Pharmaceuticals (FRA:O8Z), the current Gross Margin % is 39.23% 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 Sonoma Pharmaceuticals (FRA:O8Z) Overvalued in 2026?
Based on GuruFocus' analysis, Sonoma Pharmaceuticals stock appears to be undervalued.
The current stock price of €2.72 is trading 55% below its estimated GF Value™ of €6.04.
Key valuation signals for FRA:O8Z:
Gross Margin %: 39.23% (near median its 10-year median of 38.11)
GF Value™: €6.04 vs. price of €2.72 (55% below fair value)
Industry Position: 19.2% below the Drug Manufacturers median (#645 of 942)
No single metric tells the full story. See the FRA:O8Z stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonoma Pharmaceuticals Inc is a specialty pharmaceutical company operating in the United States. It is engaged in identifying, developing, and commercializing differentiated therapies for patients living with chronic skin conditions. The company focuses on the development and commercialization of therapeutic solutions in medical dermatology to treat skin conditions, such as acne, atopic dermatitis, and scarring. The key products of the company are Celacyn, Ceramax Skin Barrier Cream, Mondoxyne, Alevicyn, SebuDerm, Microcyn, and Microcyn which are available for various skin treatments such as scars, itchy skin, minor skin irritations, rashes, and others. The company derives revenue from the sale of products in the United States, Latin America, Europe, Asia, and other countries.
34GF Score
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