Takeda Pharmaceutical CoTSE:4502 -0.41%65 Gross Margin % is 62.93% as of Mar. 2026, which is 8% below its 10-year median of 68.33. GuruFocus rates TSE:4502 with a GF Score™ of 65/100 and a GF Value™ of 円4,533.43 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 935 Drug Manufacturers companies, Takeda Pharmaceutical Co ranks better than 76.26% on this metric.
TSE:4502's Gross Margin % is ranked better than 76.26% of 935
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs TSE:4502: 65.12
Takeda Pharmaceutical Co had a gross margin of 62.93% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Takeda Pharmaceutical Co was -1.40% per year.
Takeda Pharmaceutical Co (TSE:4502) 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
Takeda Pharmaceutical Co had a gross margin of 62.93% 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.
Takeda Pharmaceutical Co Gross Margin % Related Terms
Takeda 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, Takeda 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.
Takeda Pharmaceutical Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Takeda Pharmaceutical Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Takeda 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.
Takeda Pharmaceutical Co (TSE:4502) has a Gross Margin % of 62.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Takeda Pharmaceutical Co and its competitors. This is near median its historical median of 68.33. Over the past decade, Takeda Pharmaceutical Co's Gross Margin % has ranged from 65.12 to 71.99. According to the industry distribution chart, Takeda Pharmaceutical Co ranks #222 out of 935 companies in the Drug Manufacturers industry, placing it in the top 23.7%.
Is Takeda Pharmaceutical Co's Gross Margin % too high?
Takeda Pharmaceutical Co's current Gross Margin % of 62.93% is near median its 10-year median of 68.33. Over the past 10 years, this metric has ranged from a low of 65.12 to a high of 71.99. The Drug Manufacturers industry median Gross Margin % is 48.54. Takeda Pharmaceutical Co's value of 62.93% is 29.6% above this industry median. Based on the distribution chart, Takeda Pharmaceutical Co ranks #222 out of 935 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Takeda Pharmaceutical Co has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Takeda Pharmaceutical Co's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Takeda Pharmaceutical Co ranks #222 out of 935 companies for Gross Margin %. This places Takeda Pharmaceutical Co in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.54. Takeda Pharmaceutical Co's value of 62.93% is 29.6% above this benchmark. Historically, Takeda Pharmaceutical Co's own Gross Margin % has ranged from 65.12 to 71.99 over the past decade. While the company's 10-year median is 68.33 vs. the industry median of 48.54, Takeda 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 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. Takeda Pharmaceutical Co's current Gross Margin % of 62.93% is 29.6% 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 Takeda 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. Takeda Pharmaceutical Co's current Gross Margin % is 62.93%, which is near median its own 10-year median of 68.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Takeda Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Takeda Pharmaceutical Co (TSE:4502) is currently considered Modestly Overvalued. The stock's GF Value™ is 円4,533.43, compared to a current price of 円5,155.00 — trading 13.7% above its estimated fair value. The current Gross Margin % is 62.93%, which is near median its 10-year median of 68.33 and 29.6% above the Drug Manufacturers industry median of 48.54. Takeda Pharmaceutical Co's overall GF Score™ is 65/100 with 6 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 Takeda Pharmaceutical Co (TSE:4502), the current Gross Margin % is 62.93% 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 Takeda Pharmaceutical Co (TSE:4502) Overvalued in 2026?
Based on GuruFocus' analysis, Takeda Pharmaceutical Co stock appears to be overvalued.
The current stock price of 円5,155.00 is trading 13.7% above its estimated GF Value™ of 円4,533.43.
GuruFocus considers Takeda Pharmaceutical Co to be Modestly Overvalued.
Key valuation signals for TSE:4502:
Gross Margin %: 62.93% (near median its 10-year median of 68.33)
GF Value™: 円4,533.43 vs. price of 円5,155.00 (13.7% above fair value)
Industry Position: 29.6% above the Drug Manufacturers median (#222 of 935)
No single metric tells the full story. See the TSE:4502 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Takeda Pharmaceutical is Japan's largest pharmaceutical company, with revenue of JPY 4.5 trillion in fiscal 2025. The company's five core therapeutic areas are oncology, gastroenterology, neuroscience, rare diseases, and plasma-derived therapies, which account for more than 80% of revenue. Its geographic footprint is well diversified, with about 50% from the US, 10% from Japan, 25% from Europe, and 15% from Canada.
65GF Score
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