Sumitomo Pharma CoTSE:4506 +4.50%56 Gross Margin % is 51.43% as of Mar. 2026, which is 29% below its 10-year median of 72.54. GuruFocus rates TSE:4506 with a GF Score™ of 56/100 and a GF Value™ of 円831.04 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 937 Drug Manufacturers companies, Sumitomo Pharma Co ranks better than 63.5% on this metric.
Sumitomo Pharma Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.2%.
The historical rank and industry rank for Sumitomo Pharma Co's Gross Margin % or its related term are showing as below:
TSE:4506'
s Gross Margin % Range Over the Past 10 Years
Min: 56.67 Med: 72.54 Max: 76.83
Current: 56.67
During the past 13 years, the highestGross Margin % of Sumitomo Pharma Co was 76.83%. The lowest was 56.67%. And the median was 72.54%.
TSE:4506's Gross Margin % is ranked better than 63.5% of 937
companies
in the Drug Manufacturers industry
Industry Median: 48.46
vs TSE:4506: 56.67
Sumitomo Pharma Co had a gross margin of 51.43% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sumitomo Pharma Co was -5.20% per year.
Sumitomo Pharma Co (TSE:4506) 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
Sumitomo Pharma Co had a gross margin of 51.43% 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.
Sumitomo Pharma Co Gross Margin % Related Terms
Sumitomo Pharma Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sumitomo Pharma Co'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, Sumitomo Pharma 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.
Sumitomo Pharma Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sumitomo Pharma Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sumitomo Pharma 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.
Sumitomo Pharma Co (TSE:4506) has a Gross Margin % of 51.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sumitomo Pharma Co and its competitors. This is 29% below median its historical median of 72.54. Over the past decade, Sumitomo Pharma Co's Gross Margin % has ranged from 56.67 to 76.83. According to the industry distribution chart, Sumitomo Pharma Co ranks #342 out of 937 companies in the Drug Manufacturers industry, placing it in the top 36.5%.
Is Sumitomo Pharma Co's Gross Margin % too high?
Sumitomo Pharma Co's current Gross Margin % of 51.43% is 29% below median its 10-year median of 72.54. Over the past 10 years, this metric has ranged from a low of 56.67 to a high of 76.83. The Drug Manufacturers industry median Gross Margin % is 48.46. Sumitomo Pharma Co's value of 51.43% is 6.1% above this industry median. Based on the distribution chart, Sumitomo Pharma Co ranks #342 out of 937 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Sumitomo Pharma Co has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Pharma Co's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Sumitomo Pharma Co ranks #342 out of 937 companies for Gross Margin %. This puts Sumitomo Pharma Co in the upper half of its industry. The industry median Gross Margin % is 48.46. Sumitomo Pharma Co's value of 51.43% is 6.1% above this benchmark. Historically, Sumitomo Pharma Co's own Gross Margin % has ranged from 56.67 to 76.83 over the past decade. While the company's 10-year median is 72.54 vs. the industry median of 48.46, Sumitomo Pharma 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 48.46, based on 937 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. Sumitomo Pharma Co's current Gross Margin % of 51.43% is 6.1% 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 Sumitomo Pharma Co and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Pharma Co's current Gross Margin % is 51.43%, which is 29% below median its own 10-year median of 72.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Pharma Co stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Pharma Co (TSE:4506) is currently considered Significantly Overvalued. The stock's GF Value™ is 円831.04, compared to a current price of 円1,557.00 — trading 87.4% above its estimated fair value. The current Gross Margin % is 51.43%, which is 29% below median its 10-year median of 72.54 and 6.1% above the Drug Manufacturers industry median of 48.46. Sumitomo Pharma Co's overall GF Score™ is 56/100 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 Sumitomo Pharma Co (TSE:4506), the current Gross Margin % is 51.43% 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 Sumitomo Pharma Co (TSE:4506) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Pharma Co stock appears to be overvalued.
The current stock price of 円1,557.00 is trading 87.4% above its estimated GF Value™ of 円831.04.
GuruFocus considers Sumitomo Pharma Co to be Significantly Overvalued.
Key valuation signals for TSE:4506:
Gross Margin %: 51.43% (29% below median its 10-year median of 72.54)
GF Value™: 円831.04 vs. price of 円1,557.00 (87.4% above fair value)
Industry Position: 6.1% above the Drug Manufacturers median (#342 of 937)
No single metric tells the full story. See the TSE:4506 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Pharma Co Ltd is a specialty and generic drug manufacturing company. Sumitomo's vast majority of sales are generated in North America, followed by Japan. The company's core business is its pharmaceutical products business. The pharmaceutical business maintains a focus on a variety of areas, including cardiovascular/diabetes, psychiatry & neurology, and specialty areas. Sumitomo considers merger and acquisition investment as a potential component of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.
56GF Score
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