PHRX (Pharmagen) Gross Margin %: 55.80% (As of Mar. 2014)

What is Pharmagen Gross Margin %?

Pharmagen PHRX -90.00% Gross Margin % is 55.80% as of Mar. 2014.

Gross Margin % is calculated as gross profit divided by its revenue. Pharmagen's Gross Profit for the three months ended in Mar. 2014 was $0.74 Mil. Pharmagen's Revenue for the three months ended in Mar. 2014 was $1.32 Mil. Therefore, Pharmagen's Gross Margin % for the quarter that ended in Mar. 2014 was 55.80%.

The historical rank and industry rank for Pharmagen's Gross Margin % or its related term are showing as below:

PHRX's Gross Margin % is not ranked ^*
in the Medical Distribution industry.
Industry Median: 14.9
* Ranked among companies with meaningful Gross Margin % only.

Pharmagen had a gross margin of 55.80% for the quarter that ended in Mar. 2014 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Pharmagen was 0.00% per year.

Pharmagen (OTCPK:PHRX) 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

Pharmagen had a gross margin of 55.80% for the quarter that ended in Mar. 2014 => 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.

Pharmagen Gross Margin % Related Terms

Pharmagen Gross Margin % Historical Data

* Premium members only.

The historical data trend for Pharmagen'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.

Pharmagen Gross Margin % Chart

Pharmagen Annual Data

Trend

Jun10

Jun11

Dec12

Dec13

Gross Margin %

0.00

29.69

63.27

Pharmagen Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14
Gross Margin %	Get a 7-Day Free Trial													60.14	71.69	62.66	61.55	55.80

PHRX vs FZMD, SNYR, SGMFF: Gross Margin % Comparison

For the Medical Distribution subindustry, Pharmagen'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.

Pharmagen Gross Margin % vs Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Pharmagen's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Pharmagen's Gross Margin % falls into.

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Pharmagen Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Pharmagen's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

Gross Margin % (A: Dec. 2013 )	=	Gross Profit (A: Dec. 2013 )	/	Revenue (A: Dec. 2013 )
	=	3	/	4.813
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4.813 - 1.768)	/	4.813
	=	63.27 %

Pharmagen's Gross Margin for the quarter that ended in Mar. 2014 is calculated as

Gross Margin % (Q: Mar. 2014 )	=	Gross Profit (Q: Mar. 2014 )	/	Revenue (Q: Mar. 2014 )
	=	0.7	/	1.319
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.319 - 0.583)	/	1.319
	=	55.80 %

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.

Frequently Asked Questions Learn more about Gross Margin % →

What does a Gross Margin % of 55.80% mean?

Pharmagen (PHRX) has a Gross Margin % of 55.80% as of Mar. 2014. Gross margin is the ratio of total gross profit to net sales. View historical data on Pharmagen and its competitors.

Is Pharmagen's Gross Margin % too high?

Pharmagen's current Gross Margin % is 55.80%. The Medical Distribution industry median Gross Margin % is 14.90. Pharmagen's value of 55.80% is 274.5% above this industry median.

How does Pharmagen's Gross Margin % compare to FZMD and SNYR?

Pharmagen's Gross Margin % of 55.80% can be compared against companies in the Medical Distribution industry. The industry median Gross Margin % is 14.90. Pharmagen's value of 55.80% is 274.5% above 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 Medical Distribution company?

The median Gross Margin % among Medical Distribution companies is 14.90, based on 116 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. Pharmagen's current Gross Margin % of 55.80% is 274.5% 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 Pharmagen and its competitors. For the Medical Distribution industry, the median Gross Margin % is 14.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pharmagen's current Gross Margin % is 55.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Pharmagen stock overvalued right now?

Pharmagen (PHRX) has a current Gross Margin % of 55.80%. The current Gross Margin % is 55.80% and 274.5% above the Medical Distribution industry median of 14.90. 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 Pharmagen (PHRX), the current Gross Margin % is 55.80% as of Mar. 2014. 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.

Pharmagen Business Description

Industry Healthcare Medical Distribution

Comparable Companies FZMD SNYR SGMFF PMC EBOSF OMI UDHCF PBH PDCO SHPMY SHTDY HSIC ABC CAH MCK

Address 9337 Fraser Avenue, Silver Spring, MD, USA, 20910

Website http://pharmageninc.com

Pharmagen Inc as a distributor of specialty drugs, compounding and admix pharmacy, and producer of over-the-counter branded multivitamins to the healthcare provider market. The company distributes hard-to-find and specialty drugs to the healthcare provider market throughout the United States, while functioning as an aggregator of real-time market demand for these products.