SZSE:301281's Gross Margin % is ranked better than 61.72% of 943
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs SZSE:301281: 55.46
Shandong Keyuan Pharmaceutical Co had a gross margin of 57.60% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Shandong Keyuan Pharmaceutical Co (SZSE:301281) 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
Shandong Keyuan Pharmaceutical Co had a gross margin of 57.60% 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.
Shandong Keyuan Pharmaceutical Co Gross Margin % Related Terms
Shandong Keyuan Pharmaceutical 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.
Shandong Keyuan Pharmaceutical Co Gross Margin % Chart
SZSE:301281 vs LLY, JNJ, ABBV: Gross Margin % Comparison
For the Drug Manufacturers - General subindustry, Shandong Keyuan Pharmaceutical 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.
Shandong Keyuan Pharmaceutical Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Shandong Keyuan Pharmaceutical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shandong Keyuan Pharmaceutical 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.
Shandong Keyuan Pharmaceutical Co (SZSE:301281) has a Gross Margin % of 57.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shandong Keyuan Pharmaceutical Co and its competitors. This is 33% above median its historical median of 43.19. Over the past decade, Shandong Keyuan Pharmaceutical Co's Gross Margin % has ranged from 35.44 to 55.46. According to the industry distribution chart, Shandong Keyuan Pharmaceutical Co ranks #361 out of 943 companies in the Drug Manufacturers industry, placing it in the top 38.3%.
Is Shandong Keyuan Pharmaceutical Co's Gross Margin % too high?
Shandong Keyuan Pharmaceutical Co's current Gross Margin % of 57.60% is 33% above median its 10-year median of 43.19. Over the past 10 years, this metric has ranged from a low of 35.44 to a high of 55.46. The Drug Manufacturers industry median Gross Margin % is 48.54. Shandong Keyuan Pharmaceutical Co's value of 57.60% is 18.7% above this industry median. Based on the distribution chart, Shandong Keyuan Pharmaceutical Co ranks #361 out of 943 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Shandong Keyuan Pharmaceutical Co has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Keyuan Pharmaceutical Co's Gross Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Shandong Keyuan Pharmaceutical Co ranks #361 out of 943 companies for Gross Margin %. This puts Shandong Keyuan Pharmaceutical Co in the upper half of its industry. The industry median Gross Margin % is 48.54. Shandong Keyuan Pharmaceutical Co's value of 57.60% is 18.7% above this benchmark. Historically, Shandong Keyuan Pharmaceutical Co's own Gross Margin % has ranged from 35.44 to 55.46 over the past decade. While the company's 10-year median is 43.19 vs. the industry median of 48.54, Shandong Keyuan Pharmaceutical 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 48.54, 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. Shandong Keyuan Pharmaceutical Co's current Gross Margin % of 57.60% is 18.7% 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 Shandong Keyuan Pharmaceutical 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. Shandong Keyuan Pharmaceutical Co's current Gross Margin % is 57.60%, which is 33% above median its own 10-year median of 43.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Keyuan Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Keyuan Pharmaceutical Co (SZSE:301281) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥30.41, compared to a current price of ¥46.08 — trading 51.5% above its estimated fair value. The current Gross Margin % is 57.60%, which is 33% above median its 10-year median of 43.19 and 18.7% above the Drug Manufacturers industry median of 48.54. Shandong Keyuan Pharmaceutical Co's overall GF Score™ is 67/100 with 7 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 Shandong Keyuan Pharmaceutical Co (SZSE:301281), the current Gross Margin % is 57.60% 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 Shandong Keyuan Pharmaceutical Co (SZSE:301281) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Keyuan Pharmaceutical Co stock appears to be overvalued.
The current stock price of ¥46.08 is trading 51.5% above its estimated GF Value™ of ¥30.41.
GuruFocus considers Shandong Keyuan Pharmaceutical Co to be Significantly Overvalued.
Key valuation signals for SZSE:301281:
Gross Margin %: 57.60% (33% above median its 10-year median of 43.19)
GF Value™: ¥30.41 vs. price of ¥46.08 (51.5% above fair value)
Industry Position: 18.7% above the Drug Manufacturers median (#361 of 943)
No single metric tells the full story. See the SZSE:301281 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Keyuan Pharmaceutical Co Business Description
Shandong Keyuan Pharmaceutical Co Ltd is engaged in the research and development, production, and sales of chemical raw materials and their preparations.
67GF Score
Get the complete analysis for SZSE:301281
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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