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China Traditional Chinese Medicine Holdings Co (STU:WSG) 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
China Traditional Chinese Medicine Holdings Co had a gross margin of 47.47% for the quarter that ended in Dec. 2025 => 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.
China Traditional Chinese Medicine Holdings Co Gross Margin % Related Terms
China Traditional Chinese Medicine Holdings Co Gross Margin % Historical Data
* 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.
China Traditional Chinese Medicine Holdings Co Gross Margin % Chart
China Traditional Chinese Medicine Holdings Co Annual Data
For the Drug Manufacturers - Specialty & Generic subindustry, China Traditional Chinese Medicine 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.
China Traditional Chinese Medicine Holdings Co Gross Margin % vs Drug Manufacturers Industry
* 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.
China Traditional Chinese Medicine Holdings Co (STU:WSG) has a Gross Margin % of 47.47% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on China Traditional Chinese Medicine Holdings Co and its competitors. This is 14% below median its historical median of 55.40. Over the past decade, China Traditional Chinese Medicine Holdings Co's Gross Margin % has ranged from 47.59 to 62.09. According to the industry distribution chart, China Traditional Chinese Medicine Holdings Co ranks #482 out of 943 companies in the Drug Manufacturers industry, placing it in the top 51.1%.
Is China Traditional Chinese Medicine Holdings Co's Gross Margin % too high?
China Traditional Chinese Medicine Holdings Co's current Gross Margin % of 47.47% is 14% below median its 10-year median of 55.40. Over the past 10 years, this metric has ranged from a low of 47.59 to a high of 62.09. The Drug Manufacturers industry median Gross Margin % is 48.54. China Traditional Chinese Medicine Holdings Co's value of 47.47% is 2.2% below this industry median. Based on the distribution chart, China Traditional Chinese Medicine Holdings Co ranks #482 out of 943 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, China Traditional Chinese Medicine Holdings Co has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does China Traditional Chinese Medicine Holdings Co's Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, China Traditional Chinese Medicine Holdings Co ranks #482 out of 943 companies for Gross Margin %. This places China Traditional Chinese Medicine Holdings Co in the lower half of its industry. The industry median Gross Margin % is 48.54. China Traditional Chinese Medicine Holdings Co's value of 47.47% is 2.2% below this benchmark. Historically, China Traditional Chinese Medicine Holdings Co's own Gross Margin % has ranged from 47.59 to 62.09 over the past decade. While the company's 10-year median is 55.40 vs. the industry median of 48.54, China Traditional Chinese Medicine Holdings Co 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 943 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. China Traditional Chinese Medicine Holdings Co's current Gross Margin % of 47.47% is 2.2% 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 China Traditional Chinese Medicine Holdings Co 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. China Traditional Chinese Medicine Holdings Co's current Gross Margin % is 47.47%, which is 14% below median its own 10-year median of 55.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Traditional Chinese Medicine Holdings Co stock overvalued right now?
China Traditional Chinese Medicine Holdings Co (STU:WSG) has a current Gross Margin % of 47.47%. The stock's GF Value™ is €0.45, compared to a current price of €0.22 — trading 51.1% below its estimated fair value. The current Gross Margin % is 47.47%, which is 14% below median its 10-year median of 55.40 and 2.2% below the Drug Manufacturers industry median of 48.54. China Traditional Chinese Medicine Holdings Co's overall GF Score™ is 78/100 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 China Traditional Chinese Medicine Holdings Co (STU:WSG), the current Gross Margin % is 47.47% as of Dec. 2025. 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 China Traditional Chinese Medicine Holdings Co (STU:WSG) Overvalued in 2026?
Based on GuruFocus' analysis, China Traditional Chinese Medicine Holdings Co stock appears to be undervalued.
The current stock price of €0.22 is trading 51.1% below its estimated GF Value™ of €0.45.
Key valuation signals for STU:WSG:
Gross Margin %: 47.47% (14% below median its 10-year median of 55.40)
GF Value™: €0.45 vs. price of €0.22 (51.1% below fair value)
Industry Position: 2.2% below the Drug Manufacturers median (#482 of 943)
No single metric tells the full story. See the STU:WSG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Traditional Chinese Medicine Holdings Co Ltd is engaged in the Chinese healthcare sector. The company functions through four segments: Yi Fang, Tian Jiang, Tong Ji Tang, and Medi-World. It generates maximum revenue from the Yifang segment which mainly engages in the manufacture and sales of concentrated TCM granules (CTCMG), TCM healthcare products, and TCM decoction pieces under the Yi Fang brand. The majority of the revenue of the Yi Fang segment is derived from the sales of CTCMG. Geographically, it derives a majority of its revenue from Mainland China, and also has its presence in Hong Kong and Other countries.
78GF Score
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