Zhejiang Medicine CoSHSE:600216 -0.83%81 Gross Margin % is 35.06% as of Mar. 2026, which is 7% below its 10-year median of 37.72. GuruFocus rates SHSE:600216 with a GF Score™ of 81/100 and a GF Value™ of ¥13.81 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 938 Drug Manufacturers companies, Zhejiang Medicine Co ranks worse than 77.51% on this metric.
Zhejiang Medicine Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.4%.
The historical rank and industry rank for Zhejiang Medicine Co's Gross Margin % or its related term are showing as below:
SHSE:600216'
s Gross Margin % Range Over the Past 10 Years
Min: 28.37 Med: 37.72 Max: 42.33
Current: 32.53
During the past 13 years, the highestGross Margin % of Zhejiang Medicine Co was 42.33%. The lowest was 28.37%. And the median was 37.72%.
SHSE:600216's Gross Margin % is ranked worse than 77.51% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs SHSE:600216: 32.53
Zhejiang Medicine Co had a gross margin of 35.06% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Zhejiang Medicine Co was -2.40% per year.
Zhejiang Medicine Co (SHSE:600216) 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
Zhejiang Medicine Co had a gross margin of 35.06% 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.
Zhejiang Medicine Co Gross Margin % Related Terms
Zhejiang Medicine Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Zhejiang Medicine Co'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.
SHSE:600216 vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Zhejiang Medicine 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.
Zhejiang Medicine Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zhejiang Medicine Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhejiang Medicine 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.
Zhejiang Medicine Co (SHSE:600216) has a Gross Margin % of 35.06% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zhejiang Medicine Co and its competitors. This is near median its historical median of 37.72. Over the past decade, Zhejiang Medicine Co's Gross Margin % has ranged from 28.37 to 42.33. According to the industry distribution chart, Zhejiang Medicine Co ranks #727 out of 938 companies in the Drug Manufacturers industry, placing it in the top 77.5%.
Is Zhejiang Medicine Co's Gross Margin % too high?
Zhejiang Medicine Co's current Gross Margin % of 35.06% is near median its 10-year median of 37.72. Over the past 10 years, this metric has ranged from a low of 28.37 to a high of 42.33. The Drug Manufacturers industry median Gross Margin % is 48.54. Zhejiang Medicine Co's value of 35.06% is 27.8% below this industry median. Based on the distribution chart, Zhejiang Medicine Co ranks #727 out of 938 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Zhejiang Medicine Co has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Medicine Co's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Zhejiang Medicine Co ranks #727 out of 938 companies for Gross Margin %. This places Zhejiang Medicine Co in the lower half of its industry. The industry median Gross Margin % is 48.54. Zhejiang Medicine Co's value of 35.06% is 27.8% below this benchmark. Historically, Zhejiang Medicine Co's own Gross Margin % has ranged from 28.37 to 42.33 over the past decade. While the company's 10-year median is 37.72 vs. the industry median of 48.54, Zhejiang Medicine 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, 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. Zhejiang Medicine Co's current Gross Margin % of 35.06% is 27.8% 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 Zhejiang Medicine Co and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Medicine Co's current Gross Margin % is 35.06%, which is near median its own 10-year median of 37.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Medicine Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Medicine Co (SHSE:600216) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥13.81, compared to a current price of ¥12.00 — trading 13.1% below its estimated fair value. The current Gross Margin % is 35.06%, which is near median its 10-year median of 37.72 and 27.8% below the Drug Manufacturers industry median of 48.54. Zhejiang Medicine Co's overall GF Score™ is 81/100 with 6 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 Zhejiang Medicine Co (SHSE:600216), the current Gross Margin % is 35.06% 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 Zhejiang Medicine Co (SHSE:600216) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Medicine Co stock appears to be undervalued.
The current stock price of ¥12.00 is trading 13.1% below its estimated GF Value™ of ¥13.81.
GuruFocus considers Zhejiang Medicine Co to be Modestly Undervalued.
Key valuation signals for SHSE:600216:
Gross Margin %: 35.06% (near median its 10-year median of 37.72)
GF Value™: ¥13.81 vs. price of ¥12.00 (13.1% below fair value)
Industry Position: 27.8% below the Drug Manufacturers median (#727 of 938)
No single metric tells the full story. See the SHSE:600216 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Medicine Co Ltd is a china-based pharmaceutical company. The company manufactures fat-soluble vitamins, vitamins, quinolones, and antibiotic-resistant antibiotics, vitamin E, natural vitamin E, beta-carotene, cantharidin, vancomycin hydrochloride, and teicoplanin.
81GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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