Formosa LaboratoriesTPE:4746 +1.70%70 Gross Margin % is 41.59% as of Dec. 2025, which is 9% above its 10-year median of 38.18. GuruFocus rates TPE:4746 with a GF Score™ of 70/100 and a GF Value™ of NT$98.73 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 935 Drug Manufacturers companies, Formosa Laboratories ranks worse than 61.07% 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
Formosa Laboratories had a gross margin of 41.59% 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.
Formosa Laboratories Gross Margin % Related Terms
Formosa Laboratories Gross Margin % Historical Data
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The historical data trend for Formosa Laboratories'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, Formosa Laboratories'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.
Formosa Laboratories Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Formosa Laboratories's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Formosa Laboratories'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.
Formosa Laboratories (TPE:4746) has a Gross Margin % of 41.59% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Formosa Laboratories and its competitors. This is near median its historical median of 38.18. Over the past decade, Formosa Laboratories' Gross Margin % has ranged from 29.91 to 44.11. According to the industry distribution chart, Formosa Laboratories ranks #571 out of 935 companies in the Drug Manufacturers industry, placing it in the top 61.1%.
Is Formosa Laboratories' Gross Margin % too high?
Formosa Laboratories' current Gross Margin % of 41.59% is near median its 10-year median of 38.18. Over the past 10 years, this metric has ranged from a low of 29.91 to a high of 44.11. The Drug Manufacturers industry median Gross Margin % is 48.54. Formosa Laboratories' value of 41.59% is 14.3% below this industry median. Based on the distribution chart, Formosa Laboratories ranks #571 out of 935 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Formosa Laboratories has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Formosa Laboratories' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Formosa Laboratories ranks #571 out of 935 companies for Gross Margin %. This places Formosa Laboratories in the lower half of its industry. The industry median Gross Margin % is 48.54. Formosa Laboratories' value of 41.59% is 14.3% below this benchmark. Historically, Formosa Laboratories' own Gross Margin % has ranged from 29.91 to 44.11 over the past decade. While the company's 10-year median is 38.18 vs. the industry median of 48.54, Formosa Laboratories 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. Formosa Laboratories's current Gross Margin % of 41.59% is 14.3% 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 Formosa Laboratories 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. Formosa Laboratories's current Gross Margin % is 41.59%, which is near median its own 10-year median of 38.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Formosa Laboratories (TPE:4746) is currently considered Possible Value Trap. The stock's GF Value™ is NT$98.73, compared to a current price of NT$53.90 — trading 45.4% below its estimated fair value. The current Gross Margin % is 41.59%, which is near median its 10-year median of 38.18 and 14.3% below the Drug Manufacturers industry median of 48.54. Formosa Laboratories' overall GF Score™ is 70/100 with 3 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 Formosa Laboratories (TPE:4746), the current Gross Margin % is 41.59% 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 Formosa Laboratories (TPE:4746) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Laboratories stock appears to be undervalued.
The current stock price of NT$53.90 is trading 45.4% below its estimated GF Value™ of NT$98.73.
GuruFocus considers Formosa Laboratories to be Possible Value Trap.
Key valuation signals for TPE:4746:
Gross Margin %: 41.59% (near median its 10-year median of 38.18)
GF Value™: NT$98.73 vs. price of NT$53.90 (45.4% below fair value)
Industry Position: 14.3% below the Drug Manufacturers median (#571 of 935)
No single metric tells the full story. See the TPE:4746 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Laboratories Inc is mainly engaged in the wholesale and manufacturing of active pharmaceutical ingredients, as well as ultraviolet absorbers. The company geographically operates in India, Taiwan, Netherlands, Switzerland, Germany, Japan, China, Canada, United States, and Others.
70GF Score
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