Verano HoldingsVRNOD +0.19%65 Gross Margin % is 47.54% as of Mar. 2026, which is 6% below its 10-year median of 50.43. GuruFocus rates VRNOD with a GF Score™ of 65/100 and a GF Value™ of $7.76 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 938 Drug Manufacturers companies, Verano Holdings ranks better than 52.77% 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
Verano Holdings had a gross margin of 47.54% 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.
Verano Holdings Gross Margin % Related Terms
Verano Holdings Gross Margin % Historical Data
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The historical data trend for Verano Holdings'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, Verano Holdings'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.
Verano Holdings Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Verano Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Verano Holdings'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.
Verano Holdings (VRNOD) has a Gross Margin % of 47.54% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Verano Holdings and its competitors. This is near median its historical median of 50.43. Over the past decade, Verano Holdings' Gross Margin % has ranged from 44.86 to 59.32. According to the industry distribution chart, Verano Holdings ranks #443 out of 938 companies in the Drug Manufacturers industry, placing it in the top 47.2%.
Is Verano Holdings' Gross Margin % too high?
Verano Holdings' current Gross Margin % of 47.54% is near median its 10-year median of 50.43. Over the past 10 years, this metric has ranged from a low of 44.86 to a high of 59.32. The Drug Manufacturers industry median Gross Margin % is 48.44. Verano Holdings' value of 47.54% is 1.9% below this industry median. Based on the distribution chart, Verano Holdings ranks #443 out of 938 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Verano Holdings has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Verano Holdings' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Verano Holdings ranks #443 out of 938 companies for Gross Margin %. This puts Verano Holdings in the upper half of its industry. The industry median Gross Margin % is 48.44. Verano Holdings' value of 47.54% is 1.9% below this benchmark. Historically, Verano Holdings' own Gross Margin % has ranged from 44.86 to 59.32 over the past decade. While the company's 10-year median is 50.43 vs. the industry median of 48.44, Verano Holdings 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 48.44, based on 938 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. Verano Holdings's current Gross Margin % of 47.54% is 1.9% 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 Verano Holdings and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Verano Holdings's current Gross Margin % is 47.54%, which is near median its own 10-year median of 50.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verano Holdings stock overvalued right now?
Based on GuruFocus' analysis, Verano Holdings (VRNOD) is currently considered Possible Value Trap. The stock's GF Value™ is $7.76, compared to a current price of $5.31 — trading 31.6% below its estimated fair value. The current Gross Margin % is 47.54%, which is near median its 10-year median of 50.43 and 1.9% below the Drug Manufacturers industry median of 48.44. Verano Holdings' overall GF Score™ is 65/100 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 Verano Holdings (VRNOD), the current Gross Margin % is 47.54% 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 Verano Holdings (VRNOD) Overvalued in 2026?
Based on GuruFocus' analysis, Verano Holdings stock appears to be undervalued.
The current stock price of $5.31 is trading 31.6% below its estimated GF Value™ of $7.76.
GuruFocus considers Verano Holdings to be Possible Value Trap.
Key valuation signals for VRNOD:
Gross Margin %: 47.54% (near median its 10-year median of 50.43)
GF Value™: $7.76 vs. price of $5.31 (31.6% below fair value)
Industry Position: 1.9% below the Drug Manufacturers median (#443 of 938)
No single metric tells the full story. See the VRNOD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Verano Holdings Corp is a vertically integrated, multi-state cannabis operator in the United States. The company operates through cultivation (wholesale) and retail segments. Its consumer brands include Encore, Avexia, MUV, Savvy, BITS, and Verano, while its retail dispensaries operate under brands such as Zen Leaf and MUV. The company derives the majority of its revenue from the retail segment.
65GF Score
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