The historical rank and industry rank for Papa Medical's Gross Margin % or its related term are showing as below:
PAPA's Gross Margin % is not ranked *
in the Tobacco Products industry.
Industry Median: 33.29 * Ranked among companies with meaningful Gross Margin % only.
Papa Medical had a gross margin of 22.29% for the quarter that ended in Mar. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Papa Medical was 0.00% per year.
Papa Medical (NAS:PAPA) 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
Papa Medical had a gross margin of 22.29% for the quarter that ended in Mar. 2025 => Competition eroding margins
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.
Papa Medical Gross Margin % Related Terms
Papa Medical Gross Margin % Historical Data
* Premium members only.
The historical data trend for Papa Medical'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.
For the Tobacco subindustry, Papa Medical'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.
Papa Medical Gross Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Papa Medical's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Papa Medical'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.
Papa Medical (PAPA) has a Gross Margin % of 22.29% as of Mar. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Papa Medical and its competitors.
Is Papa Medical's Gross Margin % too high?
Papa Medical's current Gross Margin % is 22.29%. The Tobacco Products industry median Gross Margin % is 33.29. Papa Medical's value of 22.29% is 33% below this industry median.
How does Papa Medical's Gross Margin % compare to ?
Papa Medical's Gross Margin % of 22.29% can be compared against companies in the Tobacco Products industry. The industry median Gross Margin % is 33.29. Papa Medical's value of 22.29% is 33% 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 Tobacco Products company?
The median Gross Margin % among Tobacco Products companies is 33.29, based on 47 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. Papa Medical's current Gross Margin % of 22.29% is 33% 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 Papa Medical and its competitors. For the Tobacco Products industry, the median Gross Margin % is 33.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Papa Medical's current Gross Margin % is 22.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Papa Medical stock overvalued right now?
Papa Medical (PAPA) has a current Gross Margin % of 22.29%. The current Gross Margin % is 22.29% and 33% below the Tobacco Products industry median of 33.29. 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 Papa Medical (PAPA), the current Gross Margin % is 22.29% as of Mar. 2025. 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.
Papa Medical Inc is the first end-to-end cannabis dosing solution provider in the U.S. that possesses the medical atomization or nebulizing background and sells nebulizers. The company deeply engages in key activities in the cannabis and consuming E-vapors industry, from research and development, formulation design, e-liquid production, and e-liquid filling to e-liquid co-packing services. It is engaged in the research and development, design, commercialization, sales, marketing and distribution of branded e-cigarettes and cannabis E-vapors.
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