Shanghai Pharmaceuticals Holding Co (OTCPK:SHPMF) 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
Shanghai Pharmaceuticals Holding Co had a gross margin of 10.75% for the quarter that ended in Mar. 2026 => No sustainable 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.
Shanghai Pharmaceuticals Holding Co Gross Margin % Related Terms
Shanghai Pharmaceuticals Holding Co Gross Margin % Historical Data
* 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.
Shanghai Pharmaceuticals Holding Co Gross Margin % Chart
For the Medical Distribution subindustry, Shanghai Pharmaceuticals Holding Co'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.
Shanghai Pharmaceuticals Holding Co Gross Margin % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Shanghai Pharmaceuticals Holding Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Pharmaceuticals Holding Co'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.
Shanghai Pharmaceuticals Holding Co (SHPMF) has a Gross Margin % of 10.75% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shanghai Pharmaceuticals Holding Co and its competitors. This is 17% below median its historical median of 12.96. Over the past decade, Shanghai Pharmaceuticals Holding Co's Gross Margin % has ranged from 10.73 to 14.37. According to the industry distribution chart, Shanghai Pharmaceuticals Holding Co ranks #76 out of 116 companies in the Medical Distribution industry, placing it in the top 65.5%.
Is Shanghai Pharmaceuticals Holding Co's Gross Margin % too high?
Shanghai Pharmaceuticals Holding Co's current Gross Margin % of 10.75% is 17% below median its 10-year median of 12.96. Over the past 10 years, this metric has ranged from a low of 10.73 to a high of 14.37. The Medical Distribution industry median Gross Margin % is 14.90. Shanghai Pharmaceuticals Holding Co's value of 10.75% is 27.9% below this industry median. Based on the distribution chart, Shanghai Pharmaceuticals Holding Co ranks #76 out of 116 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, Shanghai Pharmaceuticals Holding Co has a GF Scoreâ„¢ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Shanghai Pharmaceuticals Holding Co's Gross Margin % compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, Shanghai Pharmaceuticals Holding Co ranks #76 out of 116 companies for Gross Margin %. This places Shanghai Pharmaceuticals Holding Co in the lower half of its industry. The industry median Gross Margin % is 14.90. Shanghai Pharmaceuticals Holding Co's value of 10.75% is 27.9% below this benchmark. Historically, Shanghai Pharmaceuticals Holding Co's own Gross Margin % has ranged from 10.73 to 14.37 over the past decade. While the company's 10-year median is 12.96 vs. the industry median of 14.90, Shanghai Pharmaceuticals Holding Co 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 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. Shanghai Pharmaceuticals Holding Co's current Gross Margin % of 10.75% is 27.9% 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 Shanghai Pharmaceuticals Holding Co 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. Shanghai Pharmaceuticals Holding Co's current Gross Margin % is 10.75%, which is 17% below median its own 10-year median of 12.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Pharmaceuticals Holding Co stock overvalued right now?
Shanghai Pharmaceuticals Holding Co (SHPMF) has a current Gross Margin % of 10.75%. The stock's GF Value™ is $1.86, compared to a current price of $1.46 — trading 21.5% below its estimated fair value. The current Gross Margin % is 10.75%, which is 17% below median its 10-year median of 12.96 and 27.9% below the Medical Distribution industry median of 14.90. Shanghai Pharmaceuticals Holding Co's overall GF Score™ is 77/100 with 4 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 Shanghai Pharmaceuticals Holding Co (SHPMF), the current Gross Margin % is 10.75% 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 Shanghai Pharmaceuticals Holding Co (SHPMF) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Pharmaceuticals Holding Co stock appears to be undervalued.
The current stock price of $1.46 is trading 21.5% below its estimated GF Value™ of $1.86.
Key valuation signals for SHPMF:
Gross Margin %: 10.75% (17% below median its 10-year median of 12.96)
GF Value™: $1.86 vs. price of $1.46 (21.5% below fair value)
Industry Position: 27.9% below the Medical Distribution median (#76 of 116)
No single metric tells the full story. See the SHPMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Pharmaceuticals Holding Co Business Description
Shanghai Pharmaceuticals Holding Co Ltd is engaged in the pharmaceutical drug development and distribution business. The Group's reportable segments are: Production, Distribution, Retail, and Other. The majority of its revenue comes from the Distribution segment, which is mainly engaged in distribution, warehousing, and other value-added pharmaceutical supply chain solutions and related services for pharmaceutical manufacturers and dispensers. The Retail segment operates a network of retail pharmacy stores, and the Production segment is mainly engaged in research and development, production, and sales of a broad range of pharmaceutical and healthcare products. Geographically, the Group mainly operates in the People's Republic of China (PRC).
77GF Score
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