Hua MedicineHUMDF 46 Gross Margin % is 59.00% as of Dec. 2025, which is 21% above its 10-year median of 48.77. GuruFocus rates HUMDF with a GF Score™ of 46/100 and a GF Value™ of $1.46 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 935 Drug Manufacturers companies, Hua Medicine ranks better than 63.96% on this metric.
The historical rank and industry rank for Hua Medicine's Gross Margin % or its related term are showing as below:
HUMDF'
s Gross Margin % Range Over the Past 10 Years
Min: 43.69 Med: 48.77 Max: 56.89
Current: 56.89
During the past 10 years, the highestGross Margin % of Hua Medicine was 56.89%. The lowest was 43.69%. And the median was 48.77%.
HUMDF's Gross Margin % is ranked better than 63.96% of 935
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs HUMDF: 56.89
Hua Medicine had a gross margin of 59.00% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hua Medicine was 0.00% per year.
Hua Medicine (OTCPK:HUMDF) 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
Hua Medicine had a gross margin of 59.00% 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.
Hua Medicine Gross Margin % Related Terms
Hua Medicine Gross Margin % Historical Data
* Premium members only.
The historical data trend for Hua Medicine'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Hua Medicine'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.
Hua Medicine Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hua Medicine's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hua Medicine'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.
Hua Medicine (HUMDF) has a Gross Margin % of 59.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Hua Medicine and its competitors. This is 21% above median its historical median of 48.77. Over the past decade, Hua Medicine's Gross Margin % has ranged from 43.69 to 56.89. According to the industry distribution chart, Hua Medicine ranks #337 out of 935 companies in the Drug Manufacturers industry, placing it in the top 36%.
Is Hua Medicine's Gross Margin % too high?
Hua Medicine's current Gross Margin % of 59.00% is 21% above median its 10-year median of 48.77. Over the past 10 years, this metric has ranged from a low of 43.69 to a high of 56.89. The Drug Manufacturers industry median Gross Margin % is 48.54. Hua Medicine's value of 59.00% is 21.5% above this industry median. Based on the distribution chart, Hua Medicine ranks #337 out of 935 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Hua Medicine has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hua Medicine's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Hua Medicine ranks #337 out of 935 companies for Gross Margin %. This puts Hua Medicine in the upper half of its industry. The industry median Gross Margin % is 48.54. Hua Medicine's value of 59.00% is 21.5% above this benchmark. Historically, Hua Medicine's own Gross Margin % has ranged from 43.69 to 56.89 over the past decade. While the company's 10-year median is 48.77 vs. the industry median of 48.54, Hua Medicine 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 935 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. Hua Medicine's current Gross Margin % of 59.00% is 21.5% 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 Hua Medicine 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. Hua Medicine's current Gross Margin % is 59.00%, which is 21% above median its own 10-year median of 48.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hua Medicine stock overvalued right now?
Based on GuruFocus' analysis, Hua Medicine (HUMDF) is currently considered Possible Value Trap. The stock's GF Value™ is $1.46, compared to a current price of $0.34 — trading 76.7% below its estimated fair value. The current Gross Margin % is 59.00%, which is 21% above median its 10-year median of 48.77 and 21.5% above the Drug Manufacturers industry median of 48.54. Hua Medicine's overall GF Score™ is 46/100 with 6 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 Hua Medicine (HUMDF), the current Gross Margin % is 59.00% 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 Hua Medicine (HUMDF) Overvalued in 2026?
Based on GuruFocus' analysis, Hua Medicine stock appears to be undervalued.
The current stock price of $0.34 is trading 76.7% below its estimated GF Value™ of $1.46.
GuruFocus considers Hua Medicine to be Possible Value Trap.
Key valuation signals for HUMDF:
Gross Margin %: 59.00% (21% above median its 10-year median of 48.77)
GF Value™: $1.46 vs. price of $0.34 (76.7% below fair value)
Industry Position: 21.5% above the Drug Manufacturers median (#337 of 935)
No single metric tells the full story. See the HUMDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hua Medicine is an investment holding company. It is engaged in the development and commercialization of a first-in-class oral drug, Dorzagliatin (HMS5552), for the treatment of Type 2 diabetes. Dorzagliatin is a first-in-class glucokinase activator, or GKA, designed to control the progressive degenerative nature of diabetes by restoring glucose homeostasis in Type 2 diabetes. The group majorly operates and generates the majority of its revenue from the PRC.
46GF Score
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