Ningbo Menovo Pharmaceutical CoSHSE:603538 +6.87%58 Gross Margin % is 27.12% as of Mar. 2026, which is 24% below its 10-year median of 35.75. GuruFocus rates SHSE:603538 with a GF Score™ of 58/100 and a GF Value™ of ¥16.21 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 943 Drug Manufacturers companies, Ningbo Menovo Pharmaceutical Co ranks worse than 75.82% on this metric.
SHSE:603538's Gross Margin % is ranked worse than 75.82% of 943
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs SHSE:603538: 33.97
Ningbo Menovo Pharmaceutical Co had a gross margin of 27.12% for the quarter that ended in Mar. 2026 => Competition eroding margins
Ningbo Menovo Pharmaceutical Co (SHSE:603538) 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
Ningbo Menovo Pharmaceutical Co had a gross margin of 27.12% 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.
Ningbo Menovo Pharmaceutical Co Gross Margin % Related Terms
Ningbo Menovo Pharmaceutical 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.
Ningbo Menovo Pharmaceutical Co Gross Margin % Chart
SHSE:603538 vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Ningbo Menovo Pharmaceutical 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.
Ningbo Menovo Pharmaceutical Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ningbo Menovo Pharmaceutical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ningbo Menovo Pharmaceutical 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.
Ningbo Menovo Pharmaceutical Co (SHSE:603538) has a Gross Margin % of 27.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ningbo Menovo Pharmaceutical Co and its competitors. This is 24% below median its historical median of 35.75. Over the past decade, Ningbo Menovo Pharmaceutical Co's Gross Margin % has ranged from 30.87 to 40.10. According to the industry distribution chart, Ningbo Menovo Pharmaceutical Co ranks #715 out of 943 companies in the Drug Manufacturers industry, placing it in the top 75.8%.
Is Ningbo Menovo Pharmaceutical Co's Gross Margin % too high?
Ningbo Menovo Pharmaceutical Co's current Gross Margin % of 27.12% is 24% below median its 10-year median of 35.75. Over the past 10 years, this metric has ranged from a low of 30.87 to a high of 40.10. The Drug Manufacturers industry median Gross Margin % is 48.54. Ningbo Menovo Pharmaceutical Co's value of 27.12% is 44.1% below this industry median. Based on the distribution chart, Ningbo Menovo Pharmaceutical Co ranks #715 out of 943 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Ningbo Menovo Pharmaceutical Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ningbo Menovo Pharmaceutical Co's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Ningbo Menovo Pharmaceutical Co ranks #715 out of 943 companies for Gross Margin %. This places Ningbo Menovo Pharmaceutical Co in the lower half of its industry. The industry median Gross Margin % is 48.54. Ningbo Menovo Pharmaceutical Co's value of 27.12% is 44.1% below this benchmark. Historically, Ningbo Menovo Pharmaceutical Co's own Gross Margin % has ranged from 30.87 to 40.10 over the past decade. While the company's 10-year median is 35.75 vs. the industry median of 48.54, Ningbo Menovo Pharmaceutical 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 943 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. Ningbo Menovo Pharmaceutical Co's current Gross Margin % of 27.12% is 44.1% 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 Ningbo Menovo Pharmaceutical 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. Ningbo Menovo Pharmaceutical Co's current Gross Margin % is 27.12%, which is 24% below median its own 10-year median of 35.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ningbo Menovo Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Ningbo Menovo Pharmaceutical Co (SHSE:603538) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥16.21, compared to a current price of ¥33.00 — trading 103.6% above its estimated fair value. The current Gross Margin % is 27.12%, which is 24% below median its 10-year median of 35.75 and 44.1% below the Drug Manufacturers industry median of 48.54. Ningbo Menovo Pharmaceutical Co's overall GF Score™ is 58/100 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 Ningbo Menovo Pharmaceutical Co (SHSE:603538), the current Gross Margin % is 27.12% 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 Ningbo Menovo Pharmaceutical Co (SHSE:603538) Overvalued in 2026?
Based on GuruFocus' analysis, Ningbo Menovo Pharmaceutical Co stock appears to be overvalued.
The current stock price of ¥33.00 is trading 103.6% above its estimated GF Value™ of ¥16.21.
GuruFocus considers Ningbo Menovo Pharmaceutical Co to be Significantly Overvalued.
Key valuation signals for SHSE:603538:
Gross Margin %: 27.12% (24% below median its 10-year median of 35.75)
GF Value™: ¥16.21 vs. price of ¥33.00 (103.6% above fair value)
Industry Position: 44.1% below the Drug Manufacturers median (#715 of 943)
No single metric tells the full story. See the SHSE:603538 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ningbo Menovo Pharmaceutical Co Business Description
Ningbo Menovo Pharmaceutical Co Ltd is a China-based company is engaged in the research and development, pilot, production and sales of pharmaceutical intermediates, APIs and finished drugs. Its products line includes cardiovascular, central nervous, respiratory, anti-tumor, anti-infective, digestive system, geriatric diseases and anti-viral systems.
58GF Score
Get the complete analysis for SHSE:603538
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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