HESG (Health Sciences Group) Gross Margin %: 40.00% (As of Sep. 2006)

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What is Health Sciences Group Gross Margin %?

Health Sciences Group HESG -99.00% Gross Margin % is 40.00% as of Sep. 2006.

Gross Margin % is calculated as gross profit divided by its revenue. Health Sciences Group's Gross Profit for the three months ended in Sep. 2006 was $0.00 Mil. Health Sciences Group's Revenue for the three months ended in Sep. 2006 was $0.01 Mil. Therefore, Health Sciences Group's Gross Margin % for the quarter that ended in Sep. 2006 was 40.00%.


The historical rank and industry rank for Health Sciences Group's Gross Margin % or its related term are showing as below:


HESG's Gross Margin % is not ranked *
in the Biotechnology industry.
Industry Median: 60.915
* Ranked among companies with meaningful Gross Margin % only.

Health Sciences Group had a gross margin of 40.00% for the quarter that ended in Sep. 2006 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Health Sciences Group was 0.00% per year.


Health Sciences Group  (OTCPK:HESG) 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

Health Sciences Group had a gross margin of 40.00% for the quarter that ended in Sep. 2006 => 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.


Health Sciences Group Gross Margin % Related Terms


Health Sciences Group Gross Margin % Historical Data

* Premium members only.

The historical data trend for Health Sciences Group'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.

Health Sciences Group Gross Margin % Chart

Health Sciences Group Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05
Gross Margin %
Get a 7-Day Free Trial 24.27 26.89 18.60 70.15 38.33

Health Sciences Group Quarterly Data
Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 57.89 25.00 25.00 25.00 40.00

HESG vs VITIF, HSTC, NTRR: Gross Margin % Comparison

For the Biotechnology subindustry, Health Sciences Group'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.


Health Sciences Group Gross Margin % vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Health Sciences Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Health Sciences Group's Gross Margin % falls into.



Health Sciences Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Health Sciences Group's Gross Margin for the fiscal year that ended in Dec. 2005 is calculated as

Gross Margin % (A: Dec. 2005 )=Gross Profit (A: Dec. 2005 ) / Revenue (A: Dec. 2005 )
=0 / 0.06
=(Revenue - Cost of Goods Sold) / Revenue
=(0.06 - 0.037) / 0.06
=38.33 %

Health Sciences Group's Gross Margin for the quarter that ended in Sep. 2006 is calculated as


Gross Margin % (Q: Sep. 2006 )=Gross Profit (Q: Sep. 2006 ) / Revenue (Q: Sep. 2006 )
=0 / 0.005
=(Revenue - Cost of Goods Sold) / Revenue
=(0.005 - 0.003) / 0.005
=40.00 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 40.00% mean?
Health Sciences Group (HESG) has a Gross Margin % of 40.00% as of Sep. 2006. Gross margin is the ratio of total gross profit to net sales. View historical data on Health Sciences Group and its competitors.
Is Health Sciences Group's Gross Margin % too high?
Health Sciences Group's current Gross Margin % is 40.00%. The Biotechnology industry median Gross Margin % is 60.92. Health Sciences Group's value of 40.00% is 34.3% below this industry median.
How does Health Sciences Group's Gross Margin % compare to VITIF and HSTC?
Health Sciences Group's Gross Margin % of 40.00% can be compared against companies in the Biotechnology industry. The industry median Gross Margin % is 60.92. Health Sciences Group's value of 40.00% is 34.3% below 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 Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.92, based on 734 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. Health Sciences Group's current Gross Margin % of 40.00% is 34.3% 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 Health Sciences Group and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Health Sciences Group's current Gross Margin % is 40.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Health Sciences Group stock overvalued right now?
Health Sciences Group (HESG) has a current Gross Margin % of 40.00%. The current Gross Margin % is 40.00% and 34.3% below the Biotechnology industry median of 60.92. 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 Health Sciences Group (HESG), the current Gross Margin % is 40.00% as of Sep. 2006. 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.

Health Sciences Group Business Description

Address 14331 Euclid Street, Suite 207, Garden Grove, CA, USA, 92843
Health Sciences Group Inc identifies, develops, and commercializes nutritional products. Its products are targeted towards consumers and medical professionals interested in preventative healthcare alternatives. The products are sold as nutritional supplements and functional ingredients to retail and wholesale customers in the nutrition, skin care, and food industries. The company distributes its products under the Swiss Research and Swiss Diet brand names.