Rubicon OrganicsROMJF -0.49%52 Gross Margin % is 25.36% as of Mar. 2026, which is 20% below its 10-year median of 31.67. GuruFocus rates ROMJF with a GF Score™ of 52/100 and a GF Value™ of $0.37 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 938 Drug Manufacturers companies, Rubicon Organics ranks worse than 73.45% on this metric.
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
Rubicon Organics had a gross margin of 25.36% for the quarter that ended in Mar. 2026 => 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.
Rubicon Organics Gross Margin % Related Terms
Rubicon Organics Gross Margin % Historical Data
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The historical data trend for Rubicon Organics'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 Drug Manufacturers - Specialty & Generic subindustry, Rubicon Organics'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.
Rubicon Organics Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Rubicon Organics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rubicon Organics'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.
Rubicon Organics (ROMJF) has a Gross Margin % of 25.36% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rubicon Organics and its competitors. This is 20% below median its historical median of 31.67. According to the industry distribution chart, Rubicon Organics ranks #689 out of 938 companies in the Drug Manufacturers industry, placing it in the top 73.5%.
Is Rubicon Organics' Gross Margin % too high?
Rubicon Organics' current Gross Margin % of 25.36% is 20% below median its 10-year median of 31.67. The Drug Manufacturers industry median Gross Margin % is 48.44. Rubicon Organics' value of 25.36% is 47.6% below this industry median. Based on the distribution chart, Rubicon Organics ranks #689 out of 938 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Rubicon Organics has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rubicon Organics' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Rubicon Organics ranks #689 out of 938 companies for Gross Margin %. This places Rubicon Organics in the lower half of its industry. The industry median Gross Margin % is 48.44. Rubicon Organics' value of 25.36% is 47.6% below this benchmark. While the company's 10-year median is 31.67 vs. the industry median of 48.44, Rubicon Organics has consistently been below 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 48.44, 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. Rubicon Organics's current Gross Margin % of 25.36% is 47.6% 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 Rubicon Organics 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. Rubicon Organics's current Gross Margin % is 25.36%, which is 20% below median its own 10-year median of 31.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rubicon Organics stock overvalued right now?
Based on GuruFocus' analysis, Rubicon Organics (ROMJF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.37, compared to a current price of $0.32 — trading 13.1% below its estimated fair value. The current Gross Margin % is 25.36%, which is 20% below median its 10-year median of 31.67 and 47.6% below the Drug Manufacturers industry median of 48.44. Rubicon Organics' overall GF Score™ is 52/100 with 2 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 Rubicon Organics (ROMJF), the current Gross Margin % is 25.36% 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 Rubicon Organics (ROMJF) Overvalued in 2026?
Based on GuruFocus' analysis, Rubicon Organics stock appears to be undervalued.
The current stock price of $0.32 is trading 13.1% below its estimated GF Value™ of $0.37.
GuruFocus considers Rubicon Organics to be Modestly Undervalued.
Key valuation signals for ROMJF:
Gross Margin %: 25.36% (20% below median its 10-year median of 31.67)
GF Value™: $0.37 vs. price of $0.32 (13.1% below fair value)
Industry Position: 47.6% below the Drug Manufacturers median (#689 of 938)
No single metric tells the full story. See the ROMJF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rubicon Organics Inc is engaged in the production and sale of cannabis in Canada. The company produces and processes organic cannabis at its wholly owned, federally licensed 125,000 square foot facility in Delta, British Columbia which it sells under its wholly owned brands and certain wholesale channels. Its brands include Simply Bare, 1964 Supply Co, Wildflower, and Homestead Cannabis Supply. It operates in a single reportable segment, being the production and sale of cannabis in Canada.
52GF Score
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