HCW BiologicsHCWB +4.54%39 Gross Margin % is 99.83% as of Mar. 2026, which is 246% above its 10-year median of 28.87. GuruFocus rates HCWB with a GF Score™ of 39/100 and a GF Value™ of $7.29 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 738 Biotechnology companies, HCW Biologics ranks better than 96.75% 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
HCW Biologics had a gross margin of 99.83% for the quarter that ended in Mar. 2026 => 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.
HCW Biologics Gross Margin % Related Terms
HCW Biologics Gross Margin % Historical Data
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The historical data trend for HCW Biologics'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.
HCWB vs MTVA, INTI, HOOK: Gross Margin % Comparison
For the Biotechnology subindustry, HCW Biologics'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.
HCW Biologics Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, HCW Biologics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HCW Biologics'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.
HCW Biologics (HCWB) has a Gross Margin % of 99.83% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on HCW Biologics and its competitors. This is 246% above median its historical median of 28.87. Over the past decade, HCW Biologics' Gross Margin % has ranged from 19.70 to 99.21. According to the industry distribution chart, HCW Biologics ranks #24 out of 738 companies in the Biotechnology industry, placing it in the top 3.3%.
Is HCW Biologics' Gross Margin % too high?
HCW Biologics' current Gross Margin % of 99.83% is 246% above median its 10-year median of 28.87. Over the past 10 years, this metric has ranged from a low of 19.70 to a high of 99.21. The Biotechnology industry median Gross Margin % is 60.94. HCW Biologics' value of 99.83% is 63.8% above this industry median. Based on the distribution chart, HCW Biologics ranks #24 out of 738 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, HCW Biologics has a GF Score™ of 39/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does HCW Biologics' Gross Margin % compare to MTVA and INTI?
According to the Biotechnology industry distribution chart, HCW Biologics ranks #24 out of 738 companies for Gross Margin %. This places HCW Biologics in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 60.94. HCW Biologics' value of 99.83% is 63.8% above this benchmark. Historically, HCW Biologics' own Gross Margin % has ranged from 19.70 to 99.21 over the past decade. While the company's 10-year median is 28.87 vs. the industry median of 60.94, HCW Biologics 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 60.94, based on 738 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. HCW Biologics's current Gross Margin % of 99.83% is 63.8% 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 HCW Biologics and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HCW Biologics's current Gross Margin % is 99.83%, which is 246% above median its own 10-year median of 28.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HCW Biologics stock overvalued right now?
Based on GuruFocus' analysis, HCW Biologics (HCWB) is currently considered Possible Value Trap. The stock's GF Value™ is $7.29, compared to a current price of $1.15 — trading 84.2% below its estimated fair value. The current Gross Margin % is 99.83%, which is 246% above median its 10-year median of 28.87 and 63.8% above the Biotechnology industry median of 60.94. HCW Biologics' overall GF Score™ is 39/100 with 7 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 HCW Biologics (HCWB), the current Gross Margin % is 99.83% 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 HCW Biologics (HCWB) Overvalued in 2026?
Based on GuruFocus' analysis, HCW Biologics stock appears to be undervalued.
The current stock price of $1.15 is trading 84.2% below its estimated GF Value™ of $7.29.
GuruFocus considers HCW Biologics to be Possible Value Trap.
Key valuation signals for HCWB:
Gross Margin %: 99.83% (246% above median its 10-year median of 28.87)
GF Value™: $7.29 vs. price of $1.15 (84.2% below fair value)
Industry Position: 63.8% above the Biotechnology median (#24 of 738)
No single metric tells the full story. See the HCWB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HCW Biologics Inc is a clinical-stage biopharmaceutical company developing transformative fusion immunotherapeutics to support or treat diseases promoted by chronic inflammation. It has created novel compounds that represent a new class of drugs that it believes has the potential to fundamentally change the treatment of autoimmune disorders and other proinflammatory diseases, cancer and senescence-associated dysplasia. The company has developed two proprietary drug discovery and development platforms which it uses to create novel fusion immunotherapeutics: The TOBI (Tissue factOr-Based fusIon) platform, and The T-cell Receptor Beta Chain constant region (TRBC) platform. It operates and manages its business as one reportable segment.
39GF Score
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