Recordati SpAMIL:REC +0.88%96 Gross Margin % is 71.60% as of Mar. 2026, which is 2% above its 10-year median of 69.86. GuruFocus rates MIL:REC with a GF Score™ of 96/100 and a GF Value™ of €60.63 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 938 Drug Manufacturers companies, Recordati SpA ranks better than 81.24% 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
Recordati SpA had a gross margin of 71.60% 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.
Recordati SpA Gross Margin % Related Terms
Recordati SpA Gross Margin % Historical Data
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The historical data trend for Recordati 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.
MIL:REC vs LLY, JNJ, ABBV: Gross Margin % Comparison
For the Drug Manufacturers - General subindustry, Recordati 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.
Recordati SpA Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Recordati SpA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Recordati 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.
Recordati SpA (MIL:REC) has a Gross Margin % of 71.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Recordati SpA and its competitors. This is near median its historical median of 69.86. Over the past decade, Recordati SpA's Gross Margin % has ranged from 68.27 to 72.93. According to the industry distribution chart, Recordati SpA ranks #176 out of 938 companies in the Drug Manufacturers industry, placing it in the top 18.8%.
Is Recordati SpA's Gross Margin % too high?
Recordati SpA's current Gross Margin % of 71.60% is near median its 10-year median of 69.86. Over the past 10 years, this metric has ranged from a low of 68.27 to a high of 72.93. The Drug Manufacturers industry median Gross Margin % is 48.44. Recordati SpA's value of 71.60% is 47.8% above this industry median. Based on the distribution chart, Recordati SpA ranks #176 out of 938 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Recordati SpA has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Recordati SpA's Gross Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Recordati SpA ranks #176 out of 938 companies for Gross Margin %. This places Recordati SpA in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.44. Recordati SpA's value of 71.60% is 47.8% above this benchmark. Historically, Recordati SpA's own Gross Margin % has ranged from 68.27 to 72.93 over the past decade. While the company's 10-year median is 69.86 vs. the industry median of 48.44, Recordati 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 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. Recordati SpA's current Gross Margin % of 71.60% is 47.8% 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 Recordati SpA 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. Recordati SpA's current Gross Margin % is 71.60%, which is near median its own 10-year median of 69.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Recordati SpA stock overvalued right now?
Based on GuruFocus' analysis, Recordati SpA (MIL:REC) is currently considered Modestly Undervalued. The stock's GF Value™ is €60.63, compared to a current price of €51.55 — trading 15% below its estimated fair value. The current Gross Margin % is 71.60%, which is near median its 10-year median of 69.86 and 47.8% above the Drug Manufacturers industry median of 48.44. Recordati SpA's overall GF Score™ is 96/100 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 Recordati SpA (MIL:REC), the current Gross Margin % is 71.60% 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 Recordati SpA (MIL:REC) Overvalued in 2026?
Based on GuruFocus' analysis, Recordati SpA stock appears to be undervalued.
The current stock price of €51.55 is trading 15% below its estimated GF Value™ of €60.63.
GuruFocus considers Recordati SpA to be Modestly Undervalued.
Key valuation signals for MIL:REC:
Gross Margin %: 71.60% (near median its 10-year median of 69.86)
GF Value™: €60.63 vs. price of €51.55 (15% below fair value)
Industry Position: 47.8% above the Drug Manufacturers median (#176 of 938)
No single metric tells the full story. See the MIL:REC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Recordati SpA is engaged in the development, production, and marketing of pharmaceutical products or of pharmaceutical chemicals. The Company operates in a broad and diverse context, which includes general medicine, specialist medicine, self-medication, and rare diseases. In addition, it is also active in the field of urology, with treatments for benign prostatic hyperplasia and male functional disorders, and in psychiatry. The Company's only operating segment is the Specialty & Primary Care segment. Its geographic areas are Europe, Australasia, America, and Africa.
96GF Score
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