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Nextleaf SolutionsSTU:L0MA Gross Margin % is 38.04% as of Mar. 2026, which is 154% above its 10-year median of 14.99. The stock has 4 warning signs investors should review. Among 941 Drug Manufacturers companies, Nextleaf Solutions ranks worse than 76.73% 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
Nextleaf Solutions had a gross margin of 38.04% 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.
Nextleaf Solutions Gross Margin % Related Terms
Nextleaf Solutions Gross Margin % Historical Data
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The historical data trend for Nextleaf Solutions'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Nextleaf Solutions'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.
Nextleaf Solutions Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Nextleaf Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nextleaf Solutions'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.
Nextleaf Solutions (STU:L0MA) has a Gross Margin % of 38.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nextleaf Solutions and its competitors. This is 154% above median its historical median of 14.99. According to the industry distribution chart, Nextleaf Solutions ranks #722 out of 941 companies in the Drug Manufacturers industry, placing it in the top 76.7%.
Is Nextleaf Solutions' Gross Margin % too high?
Nextleaf Solutions' current Gross Margin % of 38.04% is 154% above median its 10-year median of 14.99. The Drug Manufacturers industry median Gross Margin % is 48.54. Nextleaf Solutions' value of 38.04% is 21.6% below this industry median. Based on the distribution chart, Nextleaf Solutions ranks #722 out of 941 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers.
How does Nextleaf Solutions' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Nextleaf Solutions ranks #722 out of 941 companies for Gross Margin %. This places Nextleaf Solutions in the lower half of its industry. The industry median Gross Margin % is 48.54. Nextleaf Solutions' value of 38.04% is 21.6% below this benchmark. While the company's 10-year median is 14.99 vs. the industry median of 48.54, Nextleaf Solutions 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 941 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. Nextleaf Solutions's current Gross Margin % of 38.04% is 21.6% 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 Nextleaf Solutions 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. Nextleaf Solutions's current Gross Margin % is 38.04%, which is 154% above median its own 10-year median of 14.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nextleaf Solutions stock overvalued right now?
Nextleaf Solutions (STU:L0MA) has a current Gross Margin % of 38.04%. The stock's GF Value™ is €0.02, compared to a current price of €0.02 — trading 10% below its estimated fair value. The current Gross Margin % is 38.04%, which is 154% above median its 10-year median of 14.99 and 21.6% below the Drug Manufacturers industry median of 48.54. 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 Nextleaf Solutions (STU:L0MA), the current Gross Margin % is 38.04% 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.
Nextleaf Solutions Ltd is is a Canadian cannabis extractor and processor, with a focus on developing intellectual property for the extraction, distillation formulation, and delivery of cannabinoids. The Company has a single reportable segment being the provision of goods and services to the cannabis industry in Canada. All the Company's revenues are generated in Canada. Revenue from sale of goods and services includes sales of bulk distillate, branded (Glacial Gold) vape pens, oils, and softgels (branded extract products), and private label which includes toll processing and other services. Majority being from Branded extract products.
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