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Universe PharmaceuticalsUPC +20.40%59 Gross Margin % is 37.00% as of Mar. 2026, which is 14% below its 10-year median of 43.13. GuruFocus rates UPC with a GF Score™ of 59/100 and a GF Value™ of $2.80 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 940 Drug Manufacturers companies, Universe Pharmaceuticals ranks worse than 70.96% 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
Universe Pharmaceuticals had a gross margin of 37.00% for the quarter that ended in Mar. 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.
Universe Pharmaceuticals Gross Margin % Related Terms
Universe Pharmaceuticals 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.
UPC vs NPHC, CBIH, SXTC: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Universe Pharmaceuticals'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.
Universe Pharmaceuticals Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Universe Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Universe Pharmaceuticals'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.
Universe Pharmaceuticals (UPC) has a Gross Margin % of 37.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Universe Pharmaceuticals and its competitors. This is 14% below median its historical median of 43.13. Over the past decade, Universe Pharmaceuticals' Gross Margin % has ranged from 26.37 to 54.53. According to the industry distribution chart, Universe Pharmaceuticals ranks #667 out of 940 companies in the Drug Manufacturers industry, placing it in the top 71%.
Is Universe Pharmaceuticals' Gross Margin % too high?
Universe Pharmaceuticals' current Gross Margin % of 37.00% is 14% below median its 10-year median of 43.13. Over the past 10 years, this metric has ranged from a low of 26.37 to a high of 54.53. The Drug Manufacturers industry median Gross Margin % is 48.35. Universe Pharmaceuticals' value of 37.00% is 23.5% below this industry median. Based on the distribution chart, Universe Pharmaceuticals ranks #667 out of 940 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Universe Pharmaceuticals has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Universe Pharmaceuticals' Gross Margin % compare to NPHC and CBIH?
According to the Drug Manufacturers industry distribution chart, Universe Pharmaceuticals ranks #667 out of 940 companies for Gross Margin %. This places Universe Pharmaceuticals in the lower half of its industry. The industry median Gross Margin % is 48.35. Universe Pharmaceuticals' value of 37.00% is 23.5% below this benchmark. Historically, Universe Pharmaceuticals' own Gross Margin % has ranged from 26.37 to 54.53 over the past decade. While the company's 10-year median is 43.13 vs. the industry median of 48.35, Universe Pharmaceuticals 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 48.35, based on 940 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. Universe Pharmaceuticals's current Gross Margin % of 37.00% is 23.5% 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 Universe Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universe Pharmaceuticals's current Gross Margin % is 37.00%, which is 14% below median its own 10-year median of 43.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universe Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Universe Pharmaceuticals (UPC) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.80, compared to a current price of $6.67 — trading 138.2% above its estimated fair value. The current Gross Margin % is 37.00%, which is 14% below median its 10-year median of 43.13 and 23.5% below the Drug Manufacturers industry median of 48.35. Universe Pharmaceuticals' overall GF Score™ is 59/100 with 7 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 Universe Pharmaceuticals (UPC), the current Gross Margin % is 37.00% 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 Universe Pharmaceuticals (UPC) Overvalued in 2026?
Based on GuruFocus' analysis, Universe Pharmaceuticals stock appears to be overvalued.
The current stock price of $6.67 is trading 138.2% above its estimated GF Value™ of $2.80.
GuruFocus considers Universe Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for UPC:
Gross Margin %: 37.00% (14% below median its 10-year median of 43.13)
GF Value™: $2.80 vs. price of $6.67 (138.2% above fair value)
Industry Position: 23.5% below the Drug Manufacturers median (#667 of 940)
No single metric tells the full story. See the UPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universe Pharmaceuticals Inc is a pharmaceutical company specializing in the manufacturing, marketing, sales and distribution of traditional Chinese medicine derivatives products targeting the elderly with the goal of addressing their physical conditions in the ageing process and promoting their general well-being. The company also sells biomedical drugs, medical instruments, Traditional Chinese Medicine Pieces, and dietary supplements manufactured by third-party pharmaceutical companies. Its products are under two categories namely treatment and relief for common chronic health conditions in the elderly designed to achieve physical wellness and longevity (Chronic Condition Treatments), and cold and flu medications.
59GF Score
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