Shandong Boan Biotechnology Co (FRA:UJ9) 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
Shandong Boan Biotechnology Co had a gross margin of 71.50% 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.
Shandong Boan Biotechnology Co Gross Margin % Related Terms
Shandong Boan Biotechnology 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.
Shandong Boan Biotechnology Co Gross Margin % Chart
FRA:UJ9 vs VRTX, REGN, ALNY: Gross Margin % Comparison
For the Biotechnology subindustry, Shandong Boan Biotechnology 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.
Shandong Boan Biotechnology Co Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Shandong Boan Biotechnology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shandong Boan Biotechnology Co'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.
Shandong Boan Biotechnology Co (FRA:UJ9) has a Gross Margin % of 71.50% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Shandong Boan Biotechnology Co and its competitors. This is near median its historical median of 68.65. Over the past decade, Shandong Boan Biotechnology Co's Gross Margin % has ranged from 66.16 to 74.71. According to the industry distribution chart, Shandong Boan Biotechnology Co ranks #282 out of 732 companies in the Biotechnology industry, placing it in the top 38.5%.
Is Shandong Boan Biotechnology Co's Gross Margin % too high?
Shandong Boan Biotechnology Co's current Gross Margin % of 71.50% is near median its 10-year median of 68.65. Over the past 10 years, this metric has ranged from a low of 66.16 to a high of 74.71. The Biotechnology industry median Gross Margin % is 60.91. Shandong Boan Biotechnology Co's value of 71.50% is 17.4% above this industry median. Based on the distribution chart, Shandong Boan Biotechnology Co ranks #282 out of 732 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Shandong Boan Biotechnology Co has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does Shandong Boan Biotechnology Co's Gross Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Shandong Boan Biotechnology Co ranks #282 out of 732 companies for Gross Margin %. This puts Shandong Boan Biotechnology Co in the upper half of its industry. The industry median Gross Margin % is 60.91. Shandong Boan Biotechnology Co's value of 71.50% is 17.4% above this benchmark. Historically, Shandong Boan Biotechnology Co's own Gross Margin % has ranged from 66.16 to 74.71 over the past decade. While the company's 10-year median is 68.65 vs. the industry median of 60.91, Shandong Boan Biotechnology 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 Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.91, based on 732 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. Shandong Boan Biotechnology Co's current Gross Margin % of 71.50% is 17.4% 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 Shandong Boan Biotechnology Co and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Boan Biotechnology Co's current Gross Margin % is 71.50%, which is near median its own 10-year median of 68.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Boan Biotechnology Co stock overvalued right now?
Shandong Boan Biotechnology Co (FRA:UJ9) has a current Gross Margin % of 71.50%. The stock's GF Value™ is €1.70, compared to a current price of €0.56 — trading 67.1% below its estimated fair value. The current Gross Margin % is 71.50%, which is near median its 10-year median of 68.65 and 17.4% above the Biotechnology industry median of 60.91. Shandong Boan Biotechnology Co's overall GF Score™ is 44/100 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 Shandong Boan Biotechnology Co (FRA:UJ9), the current Gross Margin % is 71.50% 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 Shandong Boan Biotechnology Co (FRA:UJ9) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Boan Biotechnology Co stock appears to be undervalued.
The current stock price of €0.56 is trading 67.1% below its estimated GF Value™ of €1.70.
Key valuation signals for FRA:UJ9:
Gross Margin %: 71.50% (near median its 10-year median of 68.65)
GF Value™: €1.70 vs. price of €0.56 (67.1% below fair value)
Industry Position: 17.4% above the Biotechnology median (#282 of 732)
No single metric tells the full story. See the FRA:UJ9 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Boan Biotechnology Co Business Description
Shandong Boan Biotechnology Co Ltd is a fully integrated biopharmaceutical company. It is focused on developing, manufacturing, and marketing biologics, with a focus on oncology, autoimmune diseases, ophthalmology, and metabolic diseases. The company's drug discovery activities revolve around multiple platforms: Fully Human Antibody Platform, bsAb/msAb/Probody Platform, and ADC Platform. It has commercialized several products, such as Boyounuo, Boyoubei (denosumab injection 60 mg), Boluojia (denosumab injection 120 mg), Boyouping (dulaglutide injection), and Boyoujing; and is actively engaged in the development of other drugs like BA1104 (nivolumab injection), BA1106, BA1302 (an anti-CD228 ADC), etc. Geographically, the company generates maximum revenue from the Chinese mainland.
44GF Score
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