Biovet JSCLTS:0III Gross Margin % is 14.05% as of Dec. 2016, which is 32% above its 10-year median of 10.66. The stock has 1 warning sign investors should review.
Gross Margin % is calculated as gross profit divided by its revenue. Biovet JSC's Gross Profit for the
three
months ended in Dec. 2016 was лв9.57 Mil. Biovet JSC's Revenue for the
three
months ended in Dec. 2016 was лв68.11 Mil. Therefore, Biovet JSC's Gross Margin % for the quarter that ended in Dec. 2016 was 14.05%.
The historical rank and industry rank for Biovet JSC's Gross Margin % or its related term are showing as below:
LTS:0III'
s Gross Margin % Range Over the Past 10 Years
Min: 7.31 Med: 10.66 Max: 13.29
Current: 10.98
During the past 8 years, the highestGross Margin % of Biovet JSC was 13.29%. The lowest was 7.31%. And the median was 10.66%.
LTS:0III's Gross Margin % is not ranked
in the Drug Manufacturers industry.
Industry Median: 48.54
vs LTS:0III: 10.98
Biovet JSC had a gross margin of 14.05% for the quarter that ended in Dec. 2016 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Biovet JSC was 7.80% per year.
Biovet JSC (LTS:0III) 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
Biovet JSC had a gross margin of 14.05% for the quarter that ended in Dec. 2016 => No sustainable 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.
Biovet JSC Gross Margin % Related Terms
Biovet JSC Gross Margin % Historical Data
* Premium members only.
The historical data trend for Biovet JSC'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.
LTS:0III vs ADMP, AGRX, BUDZ: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Biovet JSC'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.
Biovet JSC Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Biovet JSC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Biovet JSC'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.
Biovet JSC (LTS:0III) has a Gross Margin % of 14.05% as of Dec. 2016. Gross margin is the ratio of total gross profit to net sales. View historical data on Biovet JSC and its competitors. This is 32% above median its historical median of 10.66. Over the past decade, Biovet JSC's Gross Margin % has ranged from 7.31 to 13.29.
Is Biovet JSC's Gross Margin % too high?
Biovet JSC's current Gross Margin % of 14.05% is 32% above median its 10-year median of 10.66. Over the past 10 years, this metric has ranged from a low of 7.31 to a high of 13.29. The Drug Manufacturers industry median Gross Margin % is 48.54. Biovet JSC's value of 14.05% is 71.1% below this industry median.
How does Biovet JSC's Gross Margin % compare to ADMP and AGRX?
Biovet JSC's Gross Margin % of 14.05% can be compared against companies in the Drug Manufacturers industry. The industry median Gross Margin % is 48.54. Biovet JSC's value of 14.05% is 71.1% below this benchmark. Historically, Biovet JSC's own Gross Margin % has ranged from 7.31 to 13.29 over the past decade. While the company's 10-year median is 10.66 vs. the industry median of 48.54, Biovet JSC 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 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. Biovet JSC's current Gross Margin % of 14.05% is 71.1% 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 Biovet JSC 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. Biovet JSC's current Gross Margin % is 14.05%, which is 32% above median its own 10-year median of 10.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Biovet JSC stock overvalued right now?
Biovet JSC (LTS:0III) has a current Gross Margin % of 14.05%. The current Gross Margin % is 14.05%, which is 32% above median its 10-year median of 10.66 and 71.1% below the Drug Manufacturers industry median of 48.54. 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 Biovet JSC (LTS:0III), the current Gross Margin % is 14.05% as of Dec. 2016. 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.
Biovet JSC manufactures & markets medicated and nutritional feed additives, enzymes, bulk active substances & pharmaceuticals for animal productivity & health. It offers intermediates, active ingredients and medicines for human pharmaceutical industry.
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