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RythmRYM -2.67%55 Gross Margin % is 80.52% as of Jun. 2026, which is 1096% above its 10-year median of 6.73. GuruFocus rates RYM with a GF Score™ of 55/100 and a GF Value™ of $42.51 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 47 Tobacco Products companies, Rythm ranks better than 95.74% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Rythm's Gross Profit for the
three
months ended in Jun. 2026 was $18.54 Mil. Rythm's Revenue for the
three
months ended in Jun. 2026 was $23.02 Mil. Therefore, Rythm's Gross Margin % for the quarter that ended in Jun. 2026 was 80.52%.
The historical rank and industry rank for Rythm's Gross Margin % or its related term are showing as below:
RYM'
s Gross Margin % Range Over the Past 10 Years
Min: -394.44 Med: 6.73 Max: 75.18
Current: 75.18
During the past 8 years, the highestGross Margin % of Rythm was 75.18%. The lowest was -394.44%. And the median was 6.73%.
RYM's Gross Margin % is ranked better than 95.74% of 47
companies
in the Tobacco Products industry
Industry Median: 33.29
vs RYM: 75.18
Rythm had a gross margin of 80.52% for the quarter that ended in Jun. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Rythm was 0.00% per year.
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
Rythm had a gross margin of 80.52% for the quarter that ended in Jun. 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.
Rythm Gross Margin % Related Terms
Rythm Gross Margin % Historical Data
* Premium members only.
The historical data trend for Rythm'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.
RYM vs CHUC, HCMC, VPRB: Gross Margin % Comparison
For the Tobacco subindustry, Rythm'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.
Rythm Gross Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Rythm's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rythm'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.
Rythm (RYM) has a Gross Margin % of 80.52% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rythm and its competitors. This is 1096% above median its historical median of 6.73. According to the industry distribution chart, Rythm ranks #2 out of 47 companies in the Tobacco Products industry, placing it in the top 4.3%.
Is Rythm's Gross Margin % too high?
Rythm's current Gross Margin % of 80.52% is 1096% above median its 10-year median of 6.73. The Tobacco Products industry median Gross Margin % is 33.29. Rythm's value of 80.52% is 141.9% above this industry median. Based on the distribution chart, Rythm ranks #2 out of 47 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, Rythm 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 Rythm's Gross Margin % compare to CHUC and HCMC?
According to the Tobacco Products industry distribution chart, Rythm ranks #2 out of 47 companies for Gross Margin %. This places Rythm in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 33.29. Rythm's value of 80.52% is 141.9% above this benchmark. While the company's 10-year median is 6.73 vs. the industry median of 33.29, Rythm 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 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. Rythm's current Gross Margin % of 80.52% is 141.9% 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 Rythm 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. Rythm's current Gross Margin % is 80.52%, which is 1096% above median its own 10-year median of 6.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rythm stock overvalued right now?
Based on GuruFocus' analysis, Rythm (RYM) is currently considered Possible Value Trap. The stock's GF Value™ is $42.51, compared to a current price of $21.90 — trading 48.5% below its estimated fair value. The current Gross Margin % is 80.52%, which is 1096% above median its 10-year median of 6.73 and 141.9% above the Tobacco Products industry median of 33.29. Rythm's overall GF Score™ is 55/100 with 9 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 Rythm (RYM), the current Gross Margin % is 80.52% as of Jun. 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 Rythm (RYM) Overvalued in 2026?
Based on GuruFocus' analysis, Rythm stock appears to be undervalued.
The current stock price of $21.90 is trading 48.5% below its estimated GF Value™ of $42.51.
GuruFocus considers Rythm to be Possible Value Trap.
Key valuation signals for RYM:
Gross Margin %: 80.52% (1096% above median its 10-year median of 6.73)
GF Value™: $42.51 vs. price of $21.90 (48.5% below fair value)
Industry Position: 141.9% above the Tobacco Products median (#2 of 47)
No single metric tells the full story. See the RYM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rythm Inc is a USA Based company. The company's portfolio of brands delivers well-being to millions of Americans every year. The company features some of the recognized and trusted names in the cannabis and hemp industries, including RYTHM, incredibles, Dogwalkers, Beboe, Senorita THC Margaritas, &Shine, Doctor Solomon's and Good Green in thousands of physical locations and online channels. With products rooted in quality, safety, and innovation, the Company is shaping cannabis experiences that enhance daily life.
55GF Score
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