The historical rank and industry rank for Genesis Healthcare's Gross Margin % or its related term are showing as below:
GENNQ's Gross Margin % is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 40.075 * Ranked among companies with meaningful Gross Margin % only.
Genesis Healthcare had a gross margin of 43.02% for the quarter that ended in Dec. 2020 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Genesis Healthcare was 0.00% per year.
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
Genesis Healthcare had a gross margin of 43.02% for the quarter that ended in Dec. 2020 => 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.
Genesis Healthcare Gross Margin % Related Terms
Genesis Healthcare Gross Margin % Historical Data
* Premium members only.
The historical data trend for Genesis Healthcare'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.
GENNQ vs AIH, JYNT, AVCO: Gross Margin % Comparison
For the Medical Care Facilities subindustry, Genesis Healthcare'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.
Genesis Healthcare Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Genesis Healthcare's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Genesis Healthcare'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.
Genesis Healthcare (GENNQ) has a Gross Margin % of 43.02% as of Dec. 2020. Gross margin is the ratio of total gross profit to net sales. View historical data on Genesis Healthcare and its competitors.
Is Genesis Healthcare's Gross Margin % too high?
Genesis Healthcare's current Gross Margin % is 43.02%. The Healthcare Providers & Services industry median Gross Margin % is 40.08. Genesis Healthcare's value of 43.02% is 7.3% above this industry median. Overall, Genesis Healthcare has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Genesis Healthcare's Gross Margin % compare to AIH and JYNT?
Genesis Healthcare's Gross Margin % of 43.02% can be compared against companies in the Healthcare Providers & Services industry. The industry median Gross Margin % is 40.08. Genesis Healthcare's value of 43.02% is 7.3% above this benchmark. 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 Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.08, based on 630 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. Genesis Healthcare's current Gross Margin % of 43.02% is 7.3% 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 Genesis Healthcare and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Genesis Healthcare's current Gross Margin % is 43.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Genesis Healthcare stock overvalued right now?
Genesis Healthcare (GENNQ) has a current Gross Margin % of 43.02%. The current Gross Margin % is 43.02% and 7.3% above the Healthcare Providers & Services industry median of 40.08. Genesis Healthcare's overall GF Score™ is 12/100. 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 Genesis Healthcare (GENNQ), the current Gross Margin % is 43.02% as of Dec. 2020. 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.
Genesis Healthcare Inc is a post-acute care provider in the United States. It focuses on the medical and physical issues facing elderly patients and is provided by the employees of skilled nursing facilities, assisted/senior living communities, integrated and third-party rehabilitation therapy business. The company has three operating segments. The inpatient services segment include the operation of skilled nursing facilities and assisted/senior living facilities; rehabilitation therapy segment services include integrated and third-party rehabilitation and respiratory therapy services; and all other services. The majority of its revenue is generated from its skilled nursing facilities of the inpatient services segment.
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