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AlvotechOISE:ALVO -1.21%55 Gross Margin % is 56.47% as of Mar. 2026, which is 37% above its 10-year median of 41.31. GuruFocus rates OISE:ALVO with a GF Score™ of 55/100 and a GF Value™ of kr2,324.01 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 943 Drug Manufacturers companies, Alvotech ranks better than 71.16% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Alvotech's Gross Profit for the
three
months ended in Mar. 2026 was kr7,496 Mil. Alvotech's Revenue for the
three
months ended in Mar. 2026 was kr13,275 Mil. Therefore, Alvotech's Gross Margin % for the quarter that ended in Mar. 2026 was 56.47%.
The historical rank and industry rank for Alvotech's Gross Margin % or its related term are showing as below:
OISE:ALVO'
s Gross Margin % Range Over the Past 10 Years
Min: -75.93 Med: 41.31 Max: 62.16
Current: 61.35
During the past 7 years, the highestGross Margin % of Alvotech was 62.16%. The lowest was -75.93%. And the median was 41.31%.
OISE:ALVO's Gross Margin % is ranked better than 71.16% of 943
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs OISE:ALVO: 61.35
Alvotech had a gross margin of 56.47% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Alvotech was 0.00% per year.
Alvotech (OISE:ALVO) 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
Alvotech had a gross margin of 56.47% 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.
Alvotech Gross Margin % Related Terms
Alvotech Gross Margin % Historical Data
* Premium members only.
The historical data trend for Alvotech'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.
OISE:ALVO vs PAHC, COLL, XERS: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Alvotech'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.
Alvotech Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Alvotech's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alvotech'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.
Alvotech (OISE:ALVO) has a Gross Margin % of 56.47% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alvotech and its competitors. This is 37% above median its historical median of 41.31. According to the industry distribution chart, Alvotech ranks #272 out of 943 companies in the Drug Manufacturers industry, placing it in the top 28.8%.
Is Alvotech's Gross Margin % too high?
Alvotech's current Gross Margin % of 56.47% is 37% above median its 10-year median of 41.31. The Drug Manufacturers industry median Gross Margin % is 48.54. Alvotech's value of 56.47% is 16.3% above this industry median. Based on the distribution chart, Alvotech ranks #272 out of 943 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Alvotech has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Alvotech's Gross Margin % compare to PAHC and COLL?
According to the Drug Manufacturers industry distribution chart, Alvotech ranks #272 out of 943 companies for Gross Margin %. This puts Alvotech in the upper half of its industry. The industry median Gross Margin % is 48.54. Alvotech's value of 56.47% is 16.3% above this benchmark. While the company's 10-year median is 41.31 vs. the industry median of 48.54, Alvotech 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 48.54, based on 943 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. Alvotech's current Gross Margin % of 56.47% is 16.3% 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 Alvotech 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. Alvotech's current Gross Margin % is 56.47%, which is 37% above median its own 10-year median of 41.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alvotech stock overvalued right now?
Based on GuruFocus' analysis, Alvotech (OISE:ALVO) is currently considered Possible Value Trap. The stock's GF Value™ is kr2,324.01, compared to a current price of kr409.00 — trading 82.4% below its estimated fair value. The current Gross Margin % is 56.47%, which is 37% above median its 10-year median of 41.31 and 16.3% above the Drug Manufacturers industry median of 48.54. Alvotech's overall GF Score™ is 55/100 with 7 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 Alvotech (OISE:ALVO), the current Gross Margin % is 56.47% 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 Alvotech (OISE:ALVO) Overvalued in 2026?
Based on GuruFocus' analysis, Alvotech stock appears to be undervalued.
The current stock price of kr409.00 is trading 82.4% below its estimated GF Value™ of kr2,324.01.
GuruFocus considers Alvotech to be Possible Value Trap.
Key valuation signals for OISE:ALVO:
Gross Margin %: 56.47% (37% above median its 10-year median of 41.31)
GF Value™: kr2,324.01 vs. price of kr409.00 (82.4% below fair value)
Industry Position: 16.3% above the Drug Manufacturers median (#272 of 943)
No single metric tells the full story. See the OISE:ALVO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alvotech is a biopharmaceutical company focused solely on the development and manufacture of biosimilar medicines for patients globally. Its purpose is to improve the health and quality of life of patients around the world by improving access to treatments for various diseases. The company's commercialized products incldue AVT02, AVT03, AVT04, AVT05, and AVT06. Its pipeline contains eight biosimilar candidates aimed at treating autoimmune disorders, eye disorders, osteoporosis, and cancer. Geographically, the company generates the majority of revenue from Europe, and the rest from the USA and the rest of the world.
55GF Score
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