NetcareSTU:NH7 85 Gross Margin % is 49.52% as of Mar. 2026, which is 0% above its 10-year median of 49.44. GuruFocus rates STU:NH7 with a GF Score™ of 85/100 and a GF Value™ of €0.28. The stock has 5 warning signs investors should review. Among 629 Healthcare Providers & Services companies, Netcare ranks better than 60.89% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Netcare's Gross Profit for the
six
months ended in Mar. 2026 was €340 Mil. Netcare's Revenue for the
six
months ended in Mar. 2026 was €686 Mil. Therefore, Netcare's Gross Margin % for the quarter that ended in Mar. 2026 was 49.52%.
The historical rank and industry rank for Netcare's Gross Margin % or its related term are showing as below:
STU:NH7'
s Gross Margin % Range Over the Past 10 Years
Min: 43.58 Med: 49.44 Max: 50.66
Current: 49.54
During the past 13 years, the highestGross Margin % of Netcare was 50.66%. The lowest was 43.58%. And the median was 49.44%.
STU:NH7's Gross Margin % is ranked better than 60.89% of 629
companies
in the Healthcare Providers & Services industry
Industry Median: 40.09
vs STU:NH7: 49.54
Netcare had a gross margin of 49.52% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Netcare was 0.60% per year.
Netcare (STU:NH7) 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
Netcare had a gross margin of 49.52% 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.
Netcare Gross Margin % Related Terms
Netcare Gross Margin % Historical Data
* Premium members only.
The historical data trend for Netcare'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:NH7 vs HCA, THC, DVA: Gross Margin % Comparison
For the Medical Care Facilities subindustry, Netcare'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.
Netcare Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Netcare's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Netcare'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.
Netcare (STU:NH7) has a Gross Margin % of 49.52% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Netcare and its competitors. This is near median its historical median of 49.44. Over the past decade, Netcare's Gross Margin % has ranged from 43.58 to 50.66. According to the industry distribution chart, Netcare ranks #246 out of 629 companies in the Healthcare Providers & Services industry, placing it in the top 39.1%.
Is Netcare's Gross Margin % too high?
Netcare's current Gross Margin % of 49.52% is near median its 10-year median of 49.44. Over the past 10 years, this metric has ranged from a low of 43.58 to a high of 50.66. The Healthcare Providers & Services industry median Gross Margin % is 40.09. Netcare's value of 49.52% is 23.5% above this industry median. Based on the distribution chart, Netcare ranks #246 out of 629 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Netcare has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Netcare's Gross Margin % compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Netcare ranks #246 out of 629 companies for Gross Margin %. This puts Netcare in the upper half of its industry. The industry median Gross Margin % is 40.09. Netcare's value of 49.52% is 23.5% above this benchmark. Historically, Netcare's own Gross Margin % has ranged from 43.58 to 50.66 over the past decade. While the company's 10-year median is 49.44 vs. the industry median of 40.09, Netcare 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 Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.09, based on 629 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. Netcare's current Gross Margin % of 49.52% is 23.5% 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 Netcare and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Netcare's current Gross Margin % is 49.52%, which is near median its own 10-year median of 49.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Netcare stock overvalued right now?
Netcare (STU:NH7) has a current Gross Margin % of 49.52%. The stock's GF Value™ is €0.28, compared to a current price of €0.30 — trading 7.1% above its estimated fair value. The current Gross Margin % is 49.52%, which is near median its 10-year median of 49.44 and 23.5% above the Healthcare Providers & Services industry median of 40.09. Netcare's overall GF Score™ is 85/100 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 Netcare (STU:NH7), the current Gross Margin % is 49.52% 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 Netcare (STU:NH7) Overvalued in 2026?
Based on GuruFocus' analysis, Netcare stock appears to be overvalued.
The current stock price of €0.30 is trading 7.1% above its estimated GF Value™ of €0.28.
Key valuation signals for STU:NH7:
Gross Margin %: 49.52% (near median its 10-year median of 49.44)
GF Value™: €0.28 vs. price of €0.30 (7.1% above fair value)
Industry Position: 23.5% above the Healthcare Providers & Services median (#246 of 629)
No single metric tells the full story. See the STU:NH7 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Netcare Ltd operates a network of hospitals in South Africa. Its network also includes emergency, cancer care, diagnostic support, primary care, and renal care services as well as occupational health and wellness services. The firm operates in two segments: Hospital and emergency services and Primary Care. The Hospital and emergency services segment contributes to majority of the firm's revenue. Netcare's services include Netcare appointmed TM, Netcare Cancer Care, Netcare Family Connect Line, Netcare Occupational Health and Netcare Pharmacy.
85GF Score
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