Lotus Pharmaceutical CoTPE:1795 -1.31%76 Gross Margin % is 55.31% as of Dec. 2025, which is 8% above its 10-year median of 51.09. GuruFocus rates TPE:1795 with a GF Score™ of 76/100 and a GF Value™ of NT$445.46 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 936 Drug Manufacturers companies, Lotus Pharmaceutical Co ranks better than 65.17% on this metric.
TPE:1795's Gross Margin % is ranked better than 65.17% of 936
companies
in the Drug Manufacturers industry
Industry Median: 48.5
vs TPE:1795: 58.05
Lotus Pharmaceutical Co had a gross margin of 55.31% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lotus Pharmaceutical Co was 7.10% per year.
Lotus Pharmaceutical Co (TPE:1795) 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
Lotus Pharmaceutical Co had a gross margin of 55.31% 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.
Lotus Pharmaceutical Co Gross Margin % Related Terms
Lotus 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Lotus 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.
Lotus Pharmaceutical Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Lotus Pharmaceutical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lotus 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.
Lotus Pharmaceutical Co (TPE:1795) has a Gross Margin % of 55.31% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Lotus Pharmaceutical Co and its competitors. This is near median its historical median of 51.09. Over the past decade, Lotus Pharmaceutical Co's Gross Margin % has ranged from 42.84 to 58.78. According to the industry distribution chart, Lotus Pharmaceutical Co ranks #326 out of 936 companies in the Drug Manufacturers industry, placing it in the top 34.8%.
Is Lotus Pharmaceutical Co's Gross Margin % too high?
Lotus Pharmaceutical Co's current Gross Margin % of 55.31% is near median its 10-year median of 51.09. Over the past 10 years, this metric has ranged from a low of 42.84 to a high of 58.78. The Drug Manufacturers industry median Gross Margin % is 48.50. Lotus Pharmaceutical Co's value of 55.31% is 14% above this industry median. Based on the distribution chart, Lotus Pharmaceutical Co ranks #326 out of 936 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Lotus Pharmaceutical Co has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Lotus Pharmaceutical Co's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Lotus Pharmaceutical Co ranks #326 out of 936 companies for Gross Margin %. This puts Lotus Pharmaceutical Co in the upper half of its industry. The industry median Gross Margin % is 48.50. Lotus Pharmaceutical Co's value of 55.31% is 14% above this benchmark. Historically, Lotus Pharmaceutical Co's own Gross Margin % has ranged from 42.84 to 58.78 over the past decade. While the company's 10-year median is 51.09 vs. the industry median of 48.50, Lotus 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 48.50, based on 936 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. Lotus Pharmaceutical Co's current Gross Margin % of 55.31% is 14% 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 Lotus Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lotus Pharmaceutical Co's current Gross Margin % is 55.31%, which is near median its own 10-year median of 51.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lotus Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Lotus Pharmaceutical Co (TPE:1795) is currently considered Possible Value Trap. The stock's GF Value™ is NT$445.46, compared to a current price of NT$189.00 — trading 57.6% below its estimated fair value. The current Gross Margin % is 55.31%, which is near median its 10-year median of 51.09 and 14% above the Drug Manufacturers industry median of 48.50. Lotus Pharmaceutical Co's overall GF Score™ is 76/100 with 4 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 Lotus Pharmaceutical Co (TPE:1795), the current Gross Margin % is 55.31% 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 Lotus Pharmaceutical Co (TPE:1795) Overvalued in 2026?
Based on GuruFocus' analysis, Lotus Pharmaceutical Co stock appears to be undervalued.
The current stock price of NT$189.00 is trading 57.6% below its estimated GF Value™ of NT$445.46.
GuruFocus considers Lotus Pharmaceutical Co to be Possible Value Trap.
Key valuation signals for TPE:1795:
Gross Margin %: 55.31% (near median its 10-year median of 51.09)
GF Value™: NT$445.46 vs. price of NT$189.00 (57.6% below fair value)
Industry Position: 14% above the Drug Manufacturers median (#326 of 936)
No single metric tells the full story. See the TPE:1795 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lotus Pharmaceutical Co Ltd is engaged in the healthcare sector. Along with its subsidiaries, it is engaged in the research and development, manufacturing, and sales of generic and branded pharmaceutical products, as well as consulting services. Its product portfolio comprises biosimilars, generic medicines, branded medicines, and various therapies in its research and development pipeline. The Group offers a differentiated portfolio of pharmaceuticals spanning several therapeutic areas, including oncology and immunology, CNS, women's health, primary care and lifestyle, and nephrology, among others. Geographically, it generates maximum revenue from the United States, and the rest from Taiwan, South Korea, Singapore, and other countries.
76GF Score
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