The historical rank and industry rank for Neptune Wellness Solutions's Gross Margin % or its related term are showing as below:
NEPTF's Gross Margin % is not ranked *
in the Drug Manufacturers industry.
Industry Median: 48.44 * Ranked among companies with meaningful Gross Margin % only.
Neptune Wellness Solutions had a gross margin of 13.62% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
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
Neptune Wellness Solutions had a gross margin of 13.62% for the quarter that ended in Dec. 2023 => 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.
Neptune Wellness Solutions Gross Margin % Related Terms
Neptune Wellness Solutions Gross Margin % Historical Data
* 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.
NEPTF vs CPMD, CLVR, THCT: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Neptune Wellness Solutions'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.
Neptune Wellness Solutions Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Neptune Wellness Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Neptune Wellness Solutions'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.
Neptune Wellness Solutions (NEPTF) has a Gross Margin % of 13.62% as of Dec. 2023. Gross margin is the ratio of total gross profit to net sales. View historical data on Neptune Wellness Solutions and its competitors.
Is Neptune Wellness Solutions' Gross Margin % too high?
Neptune Wellness Solutions' current Gross Margin % is 13.62%. The Drug Manufacturers industry median Gross Margin % is 48.44. Neptune Wellness Solutions' value of 13.62% is 71.9% below this industry median. Overall, Neptune Wellness Solutions has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Neptune Wellness Solutions' Gross Margin % compare to CPMD and CLVR?
Neptune Wellness Solutions' Gross Margin % of 13.62% can be compared against companies in the Drug Manufacturers industry. The industry median Gross Margin % is 48.44. Neptune Wellness Solutions' value of 13.62% is 71.9% below this benchmark. 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. Neptune Wellness Solutions's current Gross Margin % of 13.62% is 71.9% 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 Neptune Wellness Solutions 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. Neptune Wellness Solutions's current Gross Margin % is 13.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neptune Wellness Solutions stock overvalued right now?
Neptune Wellness Solutions (NEPTF) has a current Gross Margin % of 13.62%. The current Gross Margin % is 13.62% and 71.9% below the Drug Manufacturers industry median of 48.44. Neptune Wellness Solutions' overall GF Score™ is 16/100. 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 Neptune Wellness Solutions (NEPTF), the current Gross Margin % is 13.62% as of Dec. 2023. 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.
Neptune Wellness Solutions Inc is a consumer-packaged goods company that aims to innovate health and wellness products. It focuses on developing a portfolio of high-quality, affordable consumer products that align with the latest market trends for natural, sustainable, plant-based and purpose-driven lifestyle brands. The company's products include organic food and beverage brands such as Sprout Organics, Nosh, and Nurturme, as well as nutraceuticals brands like Biodroga and Forest Remedies. The company derives maximum revenue from United States.
16GF Score
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