Rekah Pharmaceutical ProdXTAE:REKA +1.11%57 Gross Margin % is 21.95% as of Mar. 2026, which is 17% below its 10-year median of 26.39. GuruFocus rates XTAE:REKA with a GF Score™ of 57/100 and a GF Value™ of ₪13.05 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 938 Drug Manufacturers companies, Rekah Pharmaceutical Prod ranks worse than 89.66% 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
Rekah Pharmaceutical Prod had a gross margin of 21.95% 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.
Rekah Pharmaceutical Prod Gross Margin % Related Terms
Rekah Pharmaceutical Prod 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.
XTAE:REKA vs ZTS, UTHR, VTRS: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Rekah Pharmaceutical Prod'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.
Rekah Pharmaceutical Prod Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Rekah Pharmaceutical Prod's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rekah Pharmaceutical Prod'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.
Rekah Pharmaceutical Prod (XTAE:REKA) has a Gross Margin % of 21.95% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rekah Pharmaceutical Prod and its competitors. This is 17% below median its historical median of 26.39. Over the past decade, Rekah Pharmaceutical Prod's Gross Margin % has ranged from 22.12 to 33.03. According to the industry distribution chart, Rekah Pharmaceutical Prod ranks #841 out of 938 companies in the Drug Manufacturers industry, placing it in the top 89.7%.
Is Rekah Pharmaceutical Prod's Gross Margin % too high?
Rekah Pharmaceutical Prod's current Gross Margin % of 21.95% is 17% below median its 10-year median of 26.39. Over the past 10 years, this metric has ranged from a low of 22.12 to a high of 33.03. The Drug Manufacturers industry median Gross Margin % is 48.54. Rekah Pharmaceutical Prod's value of 21.95% is 54.8% below this industry median. Based on the distribution chart, Rekah Pharmaceutical Prod ranks #841 out of 938 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Rekah Pharmaceutical Prod has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rekah Pharmaceutical Prod's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Rekah Pharmaceutical Prod ranks #841 out of 938 companies for Gross Margin %. This places Rekah Pharmaceutical Prod in the lower half of its industry. The industry median Gross Margin % is 48.54. Rekah Pharmaceutical Prod's value of 21.95% is 54.8% below this benchmark. Historically, Rekah Pharmaceutical Prod's own Gross Margin % has ranged from 22.12 to 33.03 over the past decade. While the company's 10-year median is 26.39 vs. the industry median of 48.54, Rekah Pharmaceutical Prod 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 48.54, 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. Rekah Pharmaceutical Prod's current Gross Margin % of 21.95% is 54.8% 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 Rekah Pharmaceutical Prod 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. Rekah Pharmaceutical Prod's current Gross Margin % is 21.95%, which is 17% below median its own 10-year median of 26.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rekah Pharmaceutical Prod stock overvalued right now?
Based on GuruFocus' analysis, Rekah Pharmaceutical Prod (XTAE:REKA) is currently considered Modestly Undervalued. The stock's GF Value™ is ₪13.05, compared to a current price of ₪10.97 — trading 15.9% below its estimated fair value. The current Gross Margin % is 21.95%, which is 17% below median its 10-year median of 26.39 and 54.8% below the Drug Manufacturers industry median of 48.54. Rekah Pharmaceutical Prod's overall GF Score™ is 57/100 with 3 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 Rekah Pharmaceutical Prod (XTAE:REKA), the current Gross Margin % is 21.95% 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 Rekah Pharmaceutical Prod (XTAE:REKA) Overvalued in 2026?
Based on GuruFocus' analysis, Rekah Pharmaceutical Prod stock appears to be undervalued.
The current stock price of ₪10.97 is trading 15.9% below its estimated GF Value™ of ₪13.05.
GuruFocus considers Rekah Pharmaceutical Prod to be Modestly Undervalued.
Key valuation signals for XTAE:REKA:
Gross Margin %: 21.95% (17% below median its 10-year median of 26.39)
GF Value™: ₪13.05 vs. price of ₪10.97 (15.9% below fair value)
Industry Position: 54.8% below the Drug Manufacturers median (#841 of 938)
No single metric tells the full story. See the XTAE:REKA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rekah Pharmaceutical Prod Ltd is engaged in the manufacturing, importing, marketing, and distribution of pharmaceuticals and cosmetics. It primarily caters to the needs of hospitals, retirement homes, and national medical healthcare services.
57GF Score
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