Sinopharm Group Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.9%.
The historical rank and industry rank for Sinopharm Group Co's Gross Margin % or its related term are showing as below:
SHTDY'
s Gross Margin % Range Over the Past 10 Years
Min: 7.57 Med: 8.35 Max: 9.06
Current: 7.57
During the past 13 years, the highestGross Margin % of Sinopharm Group Co was 9.06%. The lowest was 7.57%. And the median was 8.35%.
SHTDY's Gross Margin % is ranked worse than 86.49% of 111
companies
in the Medical Distribution industry
Industry Median: 17.42
vs SHTDY: 7.57
Sinopharm Group Co had a gross margin of 7.45% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sinopharm Group Co was -1.90% per year.
Sinopharm Group Co Gross Margin % Historical Data
The historical data trend for Sinopharm Group 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.
Competitive Comparison of Sinopharm Group Co's Gross Margin %
For the Medical Distribution subindustry, Sinopharm Group 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.
Sinopharm Group Co's Gross Margin % Distribution in the Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Sinopharm Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sinopharm Group 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.
Sinopharm Group Co (OTCPK:SHTDY) 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
Sinopharm Group Co had a gross margin of 7.45% for the quarter that ended in Jun. 2024 => 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.
Sinopharm Group Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Sinopharm Group Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded in 2003, Sinopharm is the largest wholesaler and retailer of drugs and medical devices in China and listed on the Hong Kong Stock Exchange in 2009. It is a core subsidiary of China National Pharmaceutical Group. Sinopharm's largest operating segment is pharmaceutical distribution, making up over 70% of its total revenue by the end of 2023. In 2018, Sinopharm acquired the largest Chinese medical device distributor, China National Scientific Instruments and Materials. Now, medical device distribution accounts for over 20% of Sinopharm's total revenue. Sinopharm's downstream customers range from hospitals and other health services institutions to end-customers.
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