Otofarma SpAMIL:OTO -0.71%16 Gross Margin % is 88.55% as of Dec. 2024, which is 3% above its 10-year median of 86.34. GuruFocus rates MIL:OTO with a GF Score™ of 16/100. The stock has 1 warning sign investors should review. Among 805 Medical Devices & Instruments companies, Otofarma SpA ranks better than 95.65% on this metric.
The historical rank and industry rank for Otofarma SpA's Gross Margin % or its related term are showing as below:
MIL:OTO'
s Gross Margin % Range Over the Past 10 Years
Min: 84.12 Med: 86.34 Max: 88.55
Current: 88.55
During the past 2 years, the highestGross Margin % of Otofarma SpA was 88.55%. The lowest was 84.12%. And the median was 86.34%.
MIL:OTO's Gross Margin % is ranked better than 95.65% of 805
companies
in the Medical Devices & Instruments industry
Industry Median: 51.94
vs MIL:OTO: 88.55
Otofarma SpA had a gross margin of 88.55% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Otofarma SpA was 0.00% per year.
Otofarma SpA (MIL:OTO) 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
Otofarma SpA had a gross margin of 88.55% for the quarter that ended in Dec. 2024 => 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.
Otofarma SpA Gross Margin % Related Terms
Otofarma SpA Gross Margin % Historical Data
* Premium members only.
The historical data trend for Otofarma SpA'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.
Otofarma SpA Gross Margin % Chart
Otofarma SpA Annual Data
Trend
Dec23
Dec24
Gross Margin %
84.12
88.55
Otofarma SpA Semi-Annual Data
Dec23
Dec24
Gross Margin %
84.12
88.55
MIL:OTO vs ABT, SYK, MDT: Gross Margin % Comparison
For the Medical Devices subindustry, Otofarma SpA'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.
Otofarma SpA Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Otofarma SpA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Otofarma SpA'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.
Otofarma SpA (MIL:OTO) has a Gross Margin % of 88.55% as of Dec. 2024. Gross margin is the ratio of total gross profit to net sales. View historical data on Otofarma SpA and its competitors. This is near median its historical median of 86.34. Over the past decade, Otofarma SpA's Gross Margin % has ranged from 84.12 to 88.55. According to the industry distribution chart, Otofarma SpA ranks #35 out of 805 companies in the Medical Devices & Instruments industry, placing it in the top 4.3%.
Is Otofarma SpA's Gross Margin % too high?
Otofarma SpA's current Gross Margin % of 88.55% is near median its 10-year median of 86.34. Over the past 10 years, this metric has ranged from a low of 84.12 to a high of 88.55. The Medical Devices & Instruments industry median Gross Margin % is 51.94. Otofarma SpA's value of 88.55% is 70.5% above this industry median. Based on the distribution chart, Otofarma SpA ranks #35 out of 805 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Otofarma SpA has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Otofarma SpA's Gross Margin % compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Otofarma SpA ranks #35 out of 805 companies for Gross Margin %. This places Otofarma SpA in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 51.94. Otofarma SpA's value of 88.55% is 70.5% above this benchmark. Historically, Otofarma SpA's own Gross Margin % has ranged from 84.12 to 88.55 over the past decade. While the company's 10-year median is 86.34 vs. the industry median of 51.94, Otofarma SpA 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 Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 51.94, based on 805 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. Otofarma SpA's current Gross Margin % of 88.55% is 70.5% 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 Otofarma SpA and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 51.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otofarma SpA's current Gross Margin % is 88.55%, which is near median its own 10-year median of 86.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otofarma SpA stock overvalued right now?
Otofarma SpA (MIL:OTO) has a current Gross Margin % of 88.55%. The current Gross Margin % is 88.55%, which is near median its 10-year median of 86.34 and 70.5% above the Medical Devices & Instruments industry median of 51.94. Otofarma SpA's overall GF Score™ is 16/100 with 1 warning sign 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 Otofarma SpA (MIL:OTO), the current Gross Margin % is 88.55% as of Dec. 2024. 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.
Otofarma SpA is engaged in the construction and production of hearing aids, is constantly growing in the audiological field to provide adequate responses to every type of hearing aid need to its customers who require the possible personalized application of custom-made hearing aids. It provides otoacoustic medical devices and TELEMEDICINE services exclusively in affiliated pharmacies, possessing a portfolio of Instrumental IT patents.
16GF Score
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