Tarsus PharmaceuticalsTARS +1.42%48 Gross Margin % is 94.20% as of Mar. 2026, which is 1% above its 10-year median of 93.20. GuruFocus rates TARS with a GF Score™ of 48/100 and a GF Value™ of $201.69 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 738 Biotechnology companies, Tarsus Pharmaceuticals ranks better than 90.65% 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
Tarsus Pharmaceuticals had a gross margin of 94.20% 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.
Tarsus Pharmaceuticals Gross Margin % Related Terms
Tarsus Pharmaceuticals Gross Margin % Historical Data
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The historical data trend for Tarsus Pharmaceuticals'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.
TARS vs VERA, IDYA, MLYS: Gross Margin % Comparison
For the Biotechnology subindustry, Tarsus Pharmaceuticals'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.
Tarsus Pharmaceuticals Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Tarsus Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tarsus Pharmaceuticals'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.
Tarsus Pharmaceuticals (TARS) has a Gross Margin % of 94.20% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tarsus Pharmaceuticals and its competitors. This is near median its historical median of 93.20. Over the past decade, Tarsus Pharmaceuticals' Gross Margin % has ranged from 90.87 to 96.36. According to the industry distribution chart, Tarsus Pharmaceuticals ranks #69 out of 738 companies in the Biotechnology industry, placing it in the top 9.3%.
Is Tarsus Pharmaceuticals' Gross Margin % too high?
Tarsus Pharmaceuticals' current Gross Margin % of 94.20% is near median its 10-year median of 93.20. Over the past 10 years, this metric has ranged from a low of 90.87 to a high of 96.36. The Biotechnology industry median Gross Margin % is 60.94. Tarsus Pharmaceuticals' value of 94.20% is 54.6% above this industry median. Based on the distribution chart, Tarsus Pharmaceuticals ranks #69 out of 738 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Tarsus Pharmaceuticals has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tarsus Pharmaceuticals' Gross Margin % compare to VERA and IDYA?
According to the Biotechnology industry distribution chart, Tarsus Pharmaceuticals ranks #69 out of 738 companies for Gross Margin %. This places Tarsus Pharmaceuticals in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 60.94. Tarsus Pharmaceuticals' value of 94.20% is 54.6% above this benchmark. Historically, Tarsus Pharmaceuticals' own Gross Margin % has ranged from 90.87 to 96.36 over the past decade. While the company's 10-year median is 93.20 vs. the industry median of 60.94, Tarsus Pharmaceuticals 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 Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.94, based on 738 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. Tarsus Pharmaceuticals's current Gross Margin % of 94.20% is 54.6% 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 Tarsus Pharmaceuticals and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tarsus Pharmaceuticals's current Gross Margin % is 94.20%, which is near median its own 10-year median of 93.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tarsus Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Tarsus Pharmaceuticals (TARS) is currently considered Possible Value Trap. The stock's GF Value™ is $201.69, compared to a current price of $67.11 — trading 66.7% below its estimated fair value. The current Gross Margin % is 94.20%, which is near median its 10-year median of 93.20 and 54.6% above the Biotechnology industry median of 60.94. Tarsus Pharmaceuticals' overall GF Score™ is 48/100 with 2 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 Tarsus Pharmaceuticals (TARS), the current Gross Margin % is 94.20% 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 Tarsus Pharmaceuticals (TARS) Overvalued in 2026?
Based on GuruFocus' analysis, Tarsus Pharmaceuticals stock appears to be undervalued.
The current stock price of $67.11 is trading 66.7% below its estimated GF Value™ of $201.69.
GuruFocus considers Tarsus Pharmaceuticals to be Possible Value Trap.
Key valuation signals for TARS:
Gross Margin %: 94.20% (near median its 10-year median of 93.20)
GF Value™: $201.69 vs. price of $67.11 (66.7% below fair value)
Industry Position: 54.6% above the Biotechnology median (#69 of 738)
No single metric tells the full story. See the TARS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tarsus Pharmaceuticals Inc is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutics, starting with eye care. The company is focused on the development and commercialization of first-in-class therapeutic candidates to provide treatment for ophthalmic conditions. The company's candidate XDEMVY is a novel investigational eye drop to treat blepharitis caused by the infestation of Demodex mites, referred to as Demodex blepharitis. TP-04 for the potential treatment of ocular rosacea and TP-05 for potential Lyme disease prophylaxis and community malaria reduction.
48GF Score
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