Vitro BiopharmaVTRO Gross Margin % is 82.17% as of Oct. 2022, which is 35% above its 10-year median of 60.70. The stock has 6 warning signs investors should review.
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
Vitro Biopharma had a gross margin of 82.17% for the quarter that ended in Oct. 2022 => 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.
Vitro Biopharma Gross Margin % Related Terms
Vitro Biopharma Gross Margin % Historical Data
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The historical data trend for Vitro Biopharma'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 Biotechnology subindustry, Vitro Biopharma'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.
Vitro Biopharma Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vitro Biopharma's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vitro Biopharma'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.
Vitro Biopharma (VTRO) has a Gross Margin % of 82.17% as of Oct. 2022. Gross margin is the ratio of total gross profit to net sales. View historical data on Vitro Biopharma and its competitors. This is 35% above median its historical median of 60.70. Over the past decade, Vitro Biopharma's Gross Margin % has ranged from 50.00 to 83.92.
Is Vitro Biopharma's Gross Margin % too high?
Vitro Biopharma's current Gross Margin % of 82.17% is 35% above median its 10-year median of 60.70. Over the past 10 years, this metric has ranged from a low of 50.00 to a high of 83.92. The Biotechnology industry median Gross Margin % is 60.80. Vitro Biopharma's value of 82.17% is 35.2% above this industry median.
How does Vitro Biopharma's Gross Margin % compare to ?
Vitro Biopharma's Gross Margin % of 82.17% can be compared against companies in the Biotechnology industry. The industry median Gross Margin % is 60.80. Vitro Biopharma's value of 82.17% is 35.2% above this benchmark. Historically, Vitro Biopharma's own Gross Margin % has ranged from 50.00 to 83.92 over the past decade. While the company's 10-year median is 60.70 vs. the industry median of 60.80, Vitro Biopharma 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 Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.80, based on 734 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. Vitro Biopharma's current Gross Margin % of 82.17% is 35.2% 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 Vitro Biopharma and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vitro Biopharma's current Gross Margin % is 82.17%, which is 35% above median its own 10-year median of 60.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vitro Biopharma stock overvalued right now?
Vitro Biopharma (VTRO) has a current Gross Margin % of 82.17%. The current Gross Margin % is 82.17%, which is 35% above median its 10-year median of 60.70 and 35.2% above the Biotechnology industry median of 60.80. 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 Vitro Biopharma (VTRO), the current Gross Margin % is 82.17% as of Oct. 2022. 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.
Vitro Diagnostics Inc is a US-based company, which is dedicated to providing high-quality commercialized cell lines, media, and stem cell technology for applications in stem cell research, drug discovery, and therapies. In addition, it also provides tools for clinical development focused on Mesenchymal Stem Cells (MSCs). Further, it offers cancer-associated fibroblasts (CAFs), which are used in the discovery of a new type of CAFs present in pancreatic cancer tumors, called pancreatic stellate cells. Geographically business activities are functioned through the region of United States.
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