KPC PharmaceuticalsSHSE:600422 -0.36%62 Gross Margin % is 22.57% as of Mar. 2026, which is 48% below its 10-year median of 43.31. GuruFocus rates SHSE:600422 with a GF Score™ of 62/100 and a GF Value™ of ¥11.84 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 935 Drug Manufacturers companies, KPC Pharmaceuticals ranks worse than 70.48% on this metric.
The historical rank and industry rank for KPC Pharmaceuticals's Gross Margin % or its related term are showing as below:
SHSE:600422'
s Gross Margin % Range Over the Past 10 Years
Min: 36.67 Med: 43.31 Max: 49.89
Current: 36.67
During the past 13 years, the highestGross Margin % of KPC Pharmaceuticals was 49.89%. The lowest was 36.67%. And the median was 43.31%.
SHSE:600422's Gross Margin % is ranked worse than 70.48% of 935
companies
in the Drug Manufacturers industry
Industry Median: 48.46
vs SHSE:600422: 36.67
KPC Pharmaceuticals had a gross margin of 22.57% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for KPC Pharmaceuticals was -0.90% 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
KPC Pharmaceuticals had a gross margin of 22.57% 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.
KPC Pharmaceuticals Gross Margin % Related Terms
KPC Pharmaceuticals Gross Margin % Historical Data
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The historical data trend for KPC Pharmaceuticals'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:600422 vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, KPC Pharmaceuticals'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.
KPC Pharmaceuticals Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, KPC Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where KPC Pharmaceuticals'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.
KPC Pharmaceuticals (SHSE:600422) has a Gross Margin % of 22.57% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on KPC Pharmaceuticals and its competitors. This is 48% below median its historical median of 43.31. Over the past decade, KPC Pharmaceuticals' Gross Margin % has ranged from 36.67 to 49.89. According to the industry distribution chart, KPC Pharmaceuticals ranks #659 out of 935 companies in the Drug Manufacturers industry, placing it in the top 70.5%.
Is KPC Pharmaceuticals' Gross Margin % too high?
KPC Pharmaceuticals' current Gross Margin % of 22.57% is 48% below median its 10-year median of 43.31. Over the past 10 years, this metric has ranged from a low of 36.67 to a high of 49.89. The Drug Manufacturers industry median Gross Margin % is 48.46. KPC Pharmaceuticals' value of 22.57% is 53.4% below this industry median. Based on the distribution chart, KPC Pharmaceuticals ranks #659 out of 935 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, KPC Pharmaceuticals has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does KPC Pharmaceuticals' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, KPC Pharmaceuticals ranks #659 out of 935 companies for Gross Margin %. This places KPC Pharmaceuticals in the lower half of its industry. The industry median Gross Margin % is 48.46. KPC Pharmaceuticals' value of 22.57% is 53.4% below this benchmark. Historically, KPC Pharmaceuticals' own Gross Margin % has ranged from 36.67 to 49.89 over the past decade. While the company's 10-year median is 43.31 vs. the industry median of 48.46, KPC Pharmaceuticals 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 48.46, based on 935 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. KPC Pharmaceuticals's current Gross Margin % of 22.57% is 53.4% 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 KPC Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KPC Pharmaceuticals's current Gross Margin % is 22.57%, which is 48% below median its own 10-year median of 43.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KPC Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, KPC Pharmaceuticals (SHSE:600422) is currently considered Significantly Undervalued. The stock's GF Value™ is ¥11.84, compared to a current price of ¥8.27 — trading 30.2% below its estimated fair value. The current Gross Margin % is 22.57%, which is 48% below median its 10-year median of 43.31 and 53.4% below the Drug Manufacturers industry median of 48.46. KPC Pharmaceuticals' 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 KPC Pharmaceuticals (SHSE:600422), the current Gross Margin % is 22.57% 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 KPC Pharmaceuticals (SHSE:600422) Overvalued in 2026?
Based on GuruFocus' analysis, KPC Pharmaceuticals stock appears to be undervalued.
The current stock price of ¥8.27 is trading 30.2% below its estimated GF Value™ of ¥11.84.
GuruFocus considers KPC Pharmaceuticals to be Significantly Undervalued.
Key valuation signals for SHSE:600422:
Gross Margin %: 22.57% (48% below median its 10-year median of 43.31)
GF Value™: ¥11.84 vs. price of ¥8.27 (30.2% below fair value)
Industry Position: 53.4% below the Drug Manufacturers median (#659 of 935)
No single metric tells the full story. See the SHSE:600422 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KPC Pharmaceuticals Inc is a pharmaceutical company which focused on innovative natural botanical drugs in China. Its business scope covers traditional Chinese medicine, chemical medicine, and medicinal circulation. Its products include Panax notoginseng, gastrodine, artemether, and special botanical drugs.
62GF Score
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