Dis-Chem PharmaciesJSE:DCP +2.27%87 Gross Margin % is 21.71% as of Feb. 2026, which is 5% below its 10-year median of 22.91. GuruFocus rates JSE:DCP with a GF Score™ of 87/100 and a GF Value™ of R38.03 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 629 Healthcare Providers & Services companies, Dis-Chem Pharmacies ranks worse than 80.76% on this metric.
The historical rank and industry rank for Dis-Chem Pharmacies's Gross Margin % or its related term are showing as below:
JSE:DCP'
s Gross Margin % Range Over the Past 10 Years
Min: 21.97 Med: 22.91 Max: 24.48
Current: 21.97
During the past 13 years, the highestGross Margin % of Dis-Chem Pharmacies was 24.48%. The lowest was 21.97%. And the median was 22.91%.
JSE:DCP's Gross Margin % is ranked worse than 80.76% of 629
companies
in the Healthcare Providers & Services industry
Industry Median: 40.09
vs JSE:DCP: 21.97
Dis-Chem Pharmacies had a gross margin of 21.71% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Dis-Chem Pharmacies was -0.20% 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
Dis-Chem Pharmacies had a gross margin of 21.71% for the quarter that ended in Feb. 2026 => 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.
Dis-Chem Pharmacies Gross Margin % Related Terms
Dis-Chem Pharmacies Gross Margin % Historical Data
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The historical data trend for Dis-Chem Pharmacies'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 Pharmaceutical Retailers subindustry, Dis-Chem Pharmacies'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.
Dis-Chem Pharmacies Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Dis-Chem Pharmacies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dis-Chem Pharmacies'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.
Dis-Chem Pharmacies (JSE:DCP) has a Gross Margin % of 21.71% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dis-Chem Pharmacies and its competitors. This is near median its historical median of 22.91. Over the past decade, Dis-Chem Pharmacies' Gross Margin % has ranged from 21.97 to 24.48. According to the industry distribution chart, Dis-Chem Pharmacies ranks #508 out of 629 companies in the Healthcare Providers & Services industry, placing it in the top 80.8%.
Is Dis-Chem Pharmacies' Gross Margin % too high?
Dis-Chem Pharmacies' current Gross Margin % of 21.71% is near median its 10-year median of 22.91. Over the past 10 years, this metric has ranged from a low of 21.97 to a high of 24.48. The Healthcare Providers & Services industry median Gross Margin % is 40.09. Dis-Chem Pharmacies' value of 21.71% is 45.8% below this industry median. Based on the distribution chart, Dis-Chem Pharmacies ranks #508 out of 629 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Dis-Chem Pharmacies has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dis-Chem Pharmacies' Gross Margin % compare to competitors?
According to the Healthcare Providers & Services industry distribution chart, Dis-Chem Pharmacies ranks #508 out of 629 companies for Gross Margin %. This places Dis-Chem Pharmacies in the lower half of its industry. The industry median Gross Margin % is 40.09. Dis-Chem Pharmacies' value of 21.71% is 45.8% below this benchmark. Historically, Dis-Chem Pharmacies' own Gross Margin % has ranged from 21.97 to 24.48 over the past decade. While the company's 10-year median is 22.91 vs. the industry median of 40.09, Dis-Chem Pharmacies has consistently been below 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 Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.09, based on 629 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. Dis-Chem Pharmacies's current Gross Margin % of 21.71% is 45.8% 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 Dis-Chem Pharmacies and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dis-Chem Pharmacies's current Gross Margin % is 21.71%, which is near median its own 10-year median of 22.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dis-Chem Pharmacies stock overvalued right now?
Based on GuruFocus' analysis, Dis-Chem Pharmacies (JSE:DCP) is currently considered Modestly Undervalued. The stock's GF Value™ is R38.03, compared to a current price of R34.25 — trading 9.9% below its estimated fair value. The current Gross Margin % is 21.71%, which is near median its 10-year median of 22.91 and 45.8% below the Healthcare Providers & Services industry median of 40.09. Dis-Chem Pharmacies' overall GF Score™ is 87/100 with 3 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 Dis-Chem Pharmacies (JSE:DCP), the current Gross Margin % is 21.71% as of Feb. 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 Dis-Chem Pharmacies (JSE:DCP) Overvalued in 2026?
Based on GuruFocus' analysis, Dis-Chem Pharmacies stock appears to be undervalued.
The current stock price of R34.25 is trading 9.9% below its estimated GF Value™ of R38.03.
GuruFocus considers Dis-Chem Pharmacies to be Modestly Undervalued.
Key valuation signals for JSE:DCP:
Gross Margin %: 21.71% (near median its 10-year median of 22.91)
GF Value™: R38.03 vs. price of R34.25 (9.9% below fair value)
Industry Position: 45.8% below the Healthcare Providers & Services median (#508 of 629)
No single metric tells the full story. See the JSE:DCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dis-Chem Pharmacies Ltd is a pharmaceutical company based in South Africa. Its product portfolio includes personal care products, beauty products, healthcare and nutrition products, and dispensary and baby care products. The operating segments of the group are Retail and Wholesale. It derives maximum revenue from the Retail segment, which includes company stores, retailers of pharmaceuticals and a variety of health and beauty products, as well as pharma-logistic services and oncology and retailers of pharmaceutical products. The Wholesale segment consists of the CJ wholesale and company distribution businesses, wholesalers of pharmaceuticals, and a variety of health and beauty products. Geographically, the group carries out its business operations principally in South Africa.
87GF Score
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