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Quipt Home Medical (NAS:QIPT) 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
Quipt Home Medical had a gross margin of 71.88% for the quarter that ended in Dec. 2025 => 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.
Quipt Home Medical Gross Margin % Related Terms
Quipt Home Medical Gross Margin % Historical Data
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The historical data trend for Quipt Home 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 Medical Distribution subindustry, Quipt Home 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.
Quipt Home Medical Gross Margin % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Quipt Home Medical's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Quipt Home 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.
Quipt Home Medical (QIPT) has a Gross Margin % of 71.88% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Quipt Home Medical and its competitors. This is near median its historical median of 72.16. Over the past decade, Quipt Home Medical's Gross Margin % has ranged from 66.97 to 76.25.
Is Quipt Home Medical's Gross Margin % too high?
Quipt Home Medical's current Gross Margin % of 71.88% is near median its 10-year median of 72.16. Over the past 10 years, this metric has ranged from a low of 66.97 to a high of 76.25. The Medical Distribution industry median Gross Margin % is 15.02. Quipt Home Medical's value of 71.88% is 378.7% above this industry median. Overall, Quipt Home Medical has a GF Score™ of 62/100, reflecting its overall financial health beyond just this single metric.
How does Quipt Home Medical's Gross Margin % compare to ACH and EDAP?
Quipt Home Medical's Gross Margin % of 71.88% can be compared against companies in the Medical Distribution industry. The industry median Gross Margin % is 15.02. Quipt Home Medical's value of 71.88% is 378.7% above this benchmark. Historically, Quipt Home Medical's own Gross Margin % has ranged from 66.97 to 76.25 over the past decade. While the company's 10-year median is 72.16 vs. the industry median of 15.02, Quipt Home Medical 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 Medical Distribution company?
The median Gross Margin % among Medical Distribution companies is 15.02, based on 120 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. Quipt Home Medical's current Gross Margin % of 71.88% is 378.7% 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 Quipt Home Medical and its competitors. For the Medical Distribution industry, the median Gross Margin % is 15.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Quipt Home Medical's current Gross Margin % is 71.88%, which is near median its own 10-year median of 72.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Quipt Home Medical stock overvalued right now?
Quipt Home Medical (QIPT) has a current Gross Margin % of 71.88%. The stock's GF Value™ is $3.77, compared to a current price of $3.65 — trading 3.2% below its estimated fair value. The current Gross Margin % is 71.88%, which is near median its 10-year median of 72.16 and 378.7% above the Medical Distribution industry median of 15.02. Quipt Home Medical's overall GF Score™ is 62/100 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 Quipt Home Medical (QIPT), the current Gross Margin % is 71.88% as of Dec. 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.
Is Quipt Home Medical (QIPT) Overvalued in 2026?
Based on GuruFocus' analysis, Quipt Home Medical stock appears to be undervalued.
The current stock price of $3.65 is trading 3.2% below its estimated GF Value™ of $3.77.
Key valuation signals for QIPT:
Gross Margin %: 71.88% (near median its 10-year median of 72.16)
GF Value™: $3.77 vs. price of $3.65 (3.2% below fair value)
Industry Position: 378.7% above the Medical Distribution median
No single metric tells the full story. See the QIPT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Quipt Home Medical Corp is a provider of durable medical equipment (DME) and home medical equipment (HME) in the United States. The Company specializes in delivering in-home treatments for the management of chronic conditions, with a primary focus on respiratory diseases, and supports patients with heart and pulmonary diseases, sleep apnea, reduced mobility, and other chronic health challenges. Its products and services include Sleep Apnea and PAP treatment, home medical equipment, home ventilation, and custom mobility solutions. The Company operates in a single business segment, comprising the sale and rental of medical equipment and related devices, and serves patients across 27 states in the United States.
62GF Score
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