Leef BrandsLEEEF -3.00%30 Gross Margin % is 49.32% as of Mar. 2026, which is 80% above its 10-year median of 27.47. GuruFocus rates LEEEF with a GF Score™ of 30/100 and a GF Value™ of $0.13 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 938 Drug Manufacturers companies, Leef Brands ranks worse than 71.11% 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
Leef Brands had a gross margin of 49.32% 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.
Leef Brands Gross Margin % Related Terms
Leef Brands Gross Margin % Historical Data
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The historical data trend for Leef Brands'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, Leef Brands'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.
Leef Brands Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Leef Brands's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Leef Brands'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.
Leef Brands (LEEEF) has a Gross Margin % of 49.32% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Leef Brands and its competitors. This is 80% above median its historical median of 27.47. Over the past decade, Leef Brands' Gross Margin % has ranged from 8.41 to 36.32. According to the industry distribution chart, Leef Brands ranks #667 out of 938 companies in the Drug Manufacturers industry, placing it in the top 71.1%.
Is Leef Brands' Gross Margin % too high?
Leef Brands' current Gross Margin % of 49.32% is 80% above median its 10-year median of 27.47. Over the past 10 years, this metric has ranged from a low of 8.41 to a high of 36.32. The Drug Manufacturers industry median Gross Margin % is 48.44. Leef Brands' value of 49.32% is 1.8% above this industry median. Based on the distribution chart, Leef Brands ranks #667 out of 938 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Leef Brands has a GF Score™ of 30/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leef Brands' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Leef Brands ranks #667 out of 938 companies for Gross Margin %. This places Leef Brands in the lower half of its industry. The industry median Gross Margin % is 48.44. Leef Brands' value of 49.32% is 1.8% above this benchmark. Historically, Leef Brands' own Gross Margin % has ranged from 8.41 to 36.32 over the past decade. While the company's 10-year median is 27.47 vs. the industry median of 48.44, Leef Brands 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. Leef Brands's current Gross Margin % of 49.32% is 1.8% 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 Leef Brands 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. Leef Brands's current Gross Margin % is 49.32%, which is 80% above median its own 10-year median of 27.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leef Brands stock overvalued right now?
Based on GuruFocus' analysis, Leef Brands (LEEEF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.13, compared to a current price of $0.17 — trading 33.3% above its estimated fair value. The current Gross Margin % is 49.32%, which is 80% above median its 10-year median of 27.47 and 1.8% above the Drug Manufacturers industry median of 48.44. Leef Brands' overall GF Score™ is 30/100 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 Leef Brands (LEEEF), the current Gross Margin % is 49.32% 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 Leef Brands (LEEEF) Overvalued in 2026?
Based on GuruFocus' analysis, Leef Brands stock appears to be overvalued.
The current stock price of $0.17 is trading 33.3% above its estimated GF Value™ of $0.13.
GuruFocus considers Leef Brands to be Significantly Overvalued.
Key valuation signals for LEEEF:
Gross Margin %: 49.32% (80% above median its 10-year median of 27.47)
GF Value™: $0.13 vs. price of $0.17 (33.3% above fair value)
Industry Position: 1.8% above the Drug Manufacturers median (#667 of 938)
No single metric tells the full story. See the LEEEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leef Brands Inc is a vertically integrated cannabis extraction and manufacturing operator based in California. The company operates in two reportable segments: Wholesale concentrates and Retail. The wholesale concentrate segment includes the propagation, nursery, flowering canopy, drying, processing, manufacturing and distribution of cannabis concentrates. The retail segment includes company owned and operated retail cannabis store in the state of California. It derives majority of the revenue from Wholesale concentrates segment.
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