Mercanto HoldingsTGSHF 34 Gross Margin % is 37.63% as of Apr. 2026, which is 79% above its 10-year median of 21.02. GuruFocus rates TGSHF with a GF Score™ of 34/100. The stock has 2 warning signs investors should review. Among 935 Drug Manufacturers companies, Mercanto Holdings ranks worse than 92.19% 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
Mercanto Holdings had a gross margin of 37.63% for the quarter that ended in Apr. 2026 => Competition eroding margins
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.
Mercanto Holdings Gross Margin % Related Terms
Mercanto Holdings Gross Margin % Historical Data
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The historical data trend for Mercanto Holdings'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Mercanto Holdings'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.
Mercanto Holdings Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Mercanto Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mercanto Holdings'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.
Mercanto Holdings (TGSHF) has a Gross Margin % of 37.63% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Mercanto Holdings and its competitors. This is 79% above median its historical median of 21.02. Over the past decade, Mercanto Holdings' Gross Margin % has ranged from 18.85 to 31.47. According to the industry distribution chart, Mercanto Holdings ranks #862 out of 935 companies in the Drug Manufacturers industry, placing it in the top 92.2%.
Is Mercanto Holdings' Gross Margin % too high?
Mercanto Holdings' current Gross Margin % of 37.63% is 79% above median its 10-year median of 21.02. Over the past 10 years, this metric has ranged from a low of 18.85 to a high of 31.47. The Drug Manufacturers industry median Gross Margin % is 48.54. Mercanto Holdings' value of 37.63% is 22.5% below this industry median. Based on the distribution chart, Mercanto Holdings ranks #862 out of 935 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Mercanto Holdings has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Mercanto Holdings' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Mercanto Holdings ranks #862 out of 935 companies for Gross Margin %. This places Mercanto Holdings in the lower half of its industry. The industry median Gross Margin % is 48.54. Mercanto Holdings' value of 37.63% is 22.5% below this benchmark. Historically, Mercanto Holdings' own Gross Margin % has ranged from 18.85 to 31.47 over the past decade. While the company's 10-year median is 21.02 vs. the industry median of 48.54, Mercanto Holdings 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 935 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. Mercanto Holdings's current Gross Margin % of 37.63% is 22.5% 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 Mercanto Holdings 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. Mercanto Holdings's current Gross Margin % is 37.63%, which is 79% above median its own 10-year median of 21.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mercanto Holdings stock overvalued right now?
Mercanto Holdings (TGSHF) has a current Gross Margin % of 37.63%. The current Gross Margin % is 37.63%, which is 79% above median its 10-year median of 21.02 and 22.5% below the Drug Manufacturers industry median of 48.54. Mercanto Holdings' overall GF Score™ is 34/100 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 Mercanto Holdings (TGSHF), the current Gross Margin % is 37.63% as of Apr. 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.
Mercanto Holdings Inc operates a portfolio of brands that include traditional cannabis and beverage products. The company exists to promote the use of mushrooms through its brands; The company offers quality products that promote health, recreation, and well-being. The portfolio of the company includes different cannabis products, probiotic, functional mushroom beverages, and others.
34GF Score
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