Labat AfricaJSE:LAB +66.67% Gross Margin % is 66.10% as of Nov. 2025, which is 54% above its 10-year median of 42.92. The stock has 5 warning signs investors should review. Among 938 Drug Manufacturers companies, Labat Africa ranks better than 71.43% on this metric.
The historical rank and industry rank for Labat Africa's Gross Margin % or its related term are showing as below:
JSE:LAB'
s Gross Margin % Range Over the Past 10 Years
Min: 19.61 Med: 42.92 Max: 67.77
Current: 61.43
During the past 13 years, the highestGross Margin % of Labat Africa was 67.77%. The lowest was 19.61%. And the median was 42.92%.
JSE:LAB's Gross Margin % is ranked better than 71.43% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.44
vs JSE:LAB: 61.43
Labat Africa had a gross margin of 66.10% for the quarter that ended in Nov. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Labat Africa was 24.60% per year.
Labat Africa (JSE:LAB) 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
Labat Africa had a gross margin of 66.10% for the quarter that ended in Nov. 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.
Labat Africa Gross Margin % Related Terms
Labat Africa Gross Margin % Historical Data
* Premium members only.
The historical data trend for Labat Africa'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.
JSE:LAB vs ZTS, UTHR, VTRS: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa'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.
Labat Africa Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Labat Africa'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.
Labat Africa (JSE:LAB) has a Gross Margin % of 66.10% as of Nov. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Labat Africa and its competitors. This is 54% above median its historical median of 42.92. Over the past decade, Labat Africa's Gross Margin % has ranged from 19.61 to 67.77. According to the industry distribution chart, Labat Africa ranks #268 out of 938 companies in the Drug Manufacturers industry, placing it in the top 28.6%.
Is Labat Africa's Gross Margin % too high?
Labat Africa's current Gross Margin % of 66.10% is 54% above median its 10-year median of 42.92. Over the past 10 years, this metric has ranged from a low of 19.61 to a high of 67.77. The Drug Manufacturers industry median Gross Margin % is 48.44. Labat Africa's value of 66.10% is 36.5% above this industry median. Based on the distribution chart, Labat Africa ranks #268 out of 938 companies in the Drug Manufacturers industry, which is above the industry midpoint.
How does Labat Africa's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #268 out of 938 companies for Gross Margin %. This puts Labat Africa in the upper half of its industry. The industry median Gross Margin % is 48.44. Labat Africa's value of 66.10% is 36.5% above this benchmark. Historically, Labat Africa's own Gross Margin % has ranged from 19.61 to 67.77 over the past decade. While the company's 10-year median is 42.92 vs. the industry median of 48.44, Labat Africa 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 48.44, based on 938 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. Labat Africa's current Gross Margin % of 66.10% is 36.5% 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 Labat Africa and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labat Africa's current Gross Margin % is 66.10%, which is 54% above median its own 10-year median of 42.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.22, compared to a current price of R0.05 — trading 77.3% below its estimated fair value. The current Gross Margin % is 66.10%, which is 54% above median its 10-year median of 42.92 and 36.5% above the Drug Manufacturers industry median of 48.44. 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 Labat Africa (JSE:LAB), the current Gross Margin % is 66.10% as of Nov. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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