Otsuka Holdings CoSTU:OS1 -1.67%86 Gross Margin % is 72.38% as of Mar. 2026, which is 7% above its 10-year median of 67.46. GuruFocus rates STU:OS1 with a GF Score™ of 86/100 and a GF Value™ of €45.23 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 938 Drug Manufacturers companies, Otsuka Holdings Co ranks better than 83.58% on this metric.
The historical rank and industry rank for Otsuka Holdings Co's Gross Margin % or its related term are showing as below:
STU:OS1'
s Gross Margin % Range Over the Past 10 Years
Min: 65.8 Med: 67.46 Max: 71.68
Current: 71.52
During the past 13 years, the highestGross Margin % of Otsuka Holdings Co was 71.68%. The lowest was 65.80%. And the median was 67.46%.
STU:OS1's Gross Margin % is ranked better than 83.58% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.44
vs STU:OS1: 71.52
Otsuka Holdings Co had a gross margin of 72.38% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Otsuka Holdings Co was 1.20% per year.
Otsuka Holdings Co (STU:OS1) 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
Otsuka Holdings Co had a gross margin of 72.38% 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.
Otsuka Holdings Co Gross Margin % Related Terms
Otsuka Holdings Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Otsuka Holdings 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.
STU:OS1 vs LLY, JNJ, ABBV: Gross Margin % Comparison
For the Drug Manufacturers - General subindustry, Otsuka Holdings 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.
Otsuka Holdings Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Otsuka Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Otsuka Holdings 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.
Otsuka Holdings Co (STU:OS1) has a Gross Margin % of 72.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Otsuka Holdings Co and its competitors. This is near median its historical median of 67.46. Over the past decade, Otsuka Holdings Co's Gross Margin % has ranged from 65.80 to 71.68. According to the industry distribution chart, Otsuka Holdings Co ranks #154 out of 938 companies in the Drug Manufacturers industry, placing it in the top 16.4%.
Is Otsuka Holdings Co's Gross Margin % too high?
Otsuka Holdings Co's current Gross Margin % of 72.38% is near median its 10-year median of 67.46. Over the past 10 years, this metric has ranged from a low of 65.80 to a high of 71.68. The Drug Manufacturers industry median Gross Margin % is 48.44. Otsuka Holdings Co's value of 72.38% is 49.4% above this industry median. Based on the distribution chart, Otsuka Holdings Co ranks #154 out of 938 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Otsuka Holdings Co has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Otsuka Holdings Co's Gross Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Otsuka Holdings Co ranks #154 out of 938 companies for Gross Margin %. This places Otsuka Holdings Co in the top 16% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.44. Otsuka Holdings Co's value of 72.38% is 49.4% above this benchmark. Historically, Otsuka Holdings Co's own Gross Margin % has ranged from 65.80 to 71.68 over the past decade. While the company's 10-year median is 67.46 vs. the industry median of 48.44, Otsuka Holdings Co 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 48.44, based on 938 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. Otsuka Holdings Co's current Gross Margin % of 72.38% is 49.4% 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 Otsuka Holdings Co and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otsuka Holdings Co's current Gross Margin % is 72.38%, which is near median its own 10-year median of 67.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otsuka Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Otsuka Holdings Co (STU:OS1) is currently considered Modestly Overvalued. The stock's GF Value™ is €45.23, compared to a current price of €59.00 — trading 30.4% above its estimated fair value. The current Gross Margin % is 72.38%, which is near median its 10-year median of 67.46 and 49.4% above the Drug Manufacturers industry median of 48.44. Otsuka Holdings Co's overall GF Score™ is 86/100 with 1 warning sign 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 Otsuka Holdings Co (STU:OS1), the current Gross Margin % is 72.38% 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 Otsuka Holdings Co (STU:OS1) Overvalued in 2026?
Based on GuruFocus' analysis, Otsuka Holdings Co stock appears to be overvalued.
The current stock price of €59.00 is trading 30.4% above its estimated GF Value™ of €45.23.
GuruFocus considers Otsuka Holdings Co to be Modestly Overvalued.
Key valuation signals for STU:OS1:
Gross Margin %: 72.38% (near median its 10-year median of 67.46)
GF Value™: €45.23 vs. price of €59.00 (30.4% above fair value)
Industry Position: 49.4% above the Drug Manufacturers median (#154 of 938)
No single metric tells the full story. See the STU:OS1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Otsuka Holdings Co Ltd is a Japan-based company that operates in pharmaceuticals, nutraceuticals, and consumer products. It operates through four reportable segments: Medical-related Business, Nutraceutical-related Business, Consumer-related Business, and Other Business. The Medical Business manufactures and sells therapeutic drugs and infusions, the Nutraceutical Business produces functional foods, beverages, and nutritional supplements, the Consumer Business offers mineral water, beverages, and foods, while the Other Business provides storage services and manufactures chemicals and analytical equipment. It generates the majority of its revenue from the medical-related business segment.
86GF Score
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