Emergent BioSolutionsSTU:ER4 -0.07%57 Gross Margin % is 51.90% as of Mar. 2026, which is 4% below its 10-year median of 54.34. GuruFocus rates STU:ER4 with a GF Score™ of 57/100 and a GF Value™ of €4.14 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 936 Drug Manufacturers companies, Emergent BioSolutions ranks better than 55.24% on this metric.
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
Emergent BioSolutions had a gross margin of 51.90% for the quarter that ended in Mar. 2026 => Durable 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.
Emergent BioSolutions Gross Margin % Related Terms
Emergent BioSolutions Gross Margin % Historical Data
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The historical data trend for Emergent BioSolutions'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.
STU:ER4 vs ELTP, NIKA, EOLS: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Emergent BioSolutions'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.
Emergent BioSolutions Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Emergent BioSolutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Emergent BioSolutions'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.
Emergent BioSolutions (STU:ER4) has a Gross Margin % of 51.90% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Emergent BioSolutions and its competitors. This is near median its historical median of 54.34. Over the past decade, Emergent BioSolutions' Gross Margin % has ranged from 31.05 to 63.43. According to the industry distribution chart, Emergent BioSolutions ranks #419 out of 936 companies in the Drug Manufacturers industry, placing it in the top 44.8%.
Is Emergent BioSolutions' Gross Margin % too high?
Emergent BioSolutions' current Gross Margin % of 51.90% is near median its 10-year median of 54.34. Over the past 10 years, this metric has ranged from a low of 31.05 to a high of 63.43. The Drug Manufacturers industry median Gross Margin % is 48.50. Emergent BioSolutions' value of 51.90% is 7% above this industry median. Based on the distribution chart, Emergent BioSolutions ranks #419 out of 936 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Emergent BioSolutions has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Emergent BioSolutions' Gross Margin % compare to ELTP and NIKA?
According to the Drug Manufacturers industry distribution chart, Emergent BioSolutions ranks #419 out of 936 companies for Gross Margin %. This puts Emergent BioSolutions in the upper half of its industry. The industry median Gross Margin % is 48.50. Emergent BioSolutions' value of 51.90% is 7% above this benchmark. Historically, Emergent BioSolutions' own Gross Margin % has ranged from 31.05 to 63.43 over the past decade. While the company's 10-year median is 54.34 vs. the industry median of 48.50, Emergent BioSolutions has consistently been above 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 48.50, based on 936 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. Emergent BioSolutions's current Gross Margin % of 51.90% is 7% above 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 Emergent BioSolutions and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emergent BioSolutions's current Gross Margin % is 51.90%, which is near median its own 10-year median of 54.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Emergent BioSolutions stock overvalued right now?
Based on GuruFocus' analysis, Emergent BioSolutions (STU:ER4) is currently considered Significantly Overvalued. The stock's GF Value™ is €4.14, compared to a current price of €7.35 — trading 77.4% above its estimated fair value. The current Gross Margin % is 51.90%, which is near median its 10-year median of 54.34 and 7% above the Drug Manufacturers industry median of 48.50. Emergent BioSolutions' overall GF Score™ is 57/100 with 5 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 Emergent BioSolutions (STU:ER4), the current Gross Margin % is 51.90% 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 Emergent BioSolutions (STU:ER4) Overvalued in 2026?
Based on GuruFocus' analysis, Emergent BioSolutions stock appears to be overvalued.
The current stock price of €7.35 is trading 77.4% above its estimated GF Value™ of €4.14.
GuruFocus considers Emergent BioSolutions to be Significantly Overvalued.
Key valuation signals for STU:ER4:
Gross Margin %: 51.90% (near median its 10-year median of 54.34)
GF Value™: €4.14 vs. price of €7.35 (77.4% above fair value)
Industry Position: 7% above the Drug Manufacturers median (#419 of 936)
No single metric tells the full story. See the STU:ER4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Emergent BioSolutions Inc offers public health products to the government and healthcare providers. Company operates in three segments namely Commercial Product, MCM Products, and Services segment. The Commercial Product Segment consisting of Nasal Spray; the MCM Products Segment consisting of Anthrax-MCM products, Smallpox-MCM products and Other Products and the Services Segment consisting of Bioservices portfolio. Geographically, the company operates in United States, Canada, and Others. It derives maximum revenue from United states. The company's products include: NARCAN Nasal Spray, KLOXXADO Nasal Spray, ACAM2000, ANTHRASIL, BAT, BioThrax, CNJ-016, raxibacumab injection, Ebanga, and others.
57GF Score
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