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Eton Pharmaceuticals (NAS:ETON) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Eton Pharmaceuticals Net Margin % Related Terms
Eton Pharmaceuticals Net Margin % Historical Data
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The historical data trend for Eton Pharmaceuticals's Net 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, Eton Pharmaceuticals's Net Margin %, along with its competitors' market caps and Net 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.
Eton Pharmaceuticals Net Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Eton Pharmaceuticals's Net Margin % distribution charts can be found below:
* The bar in red indicates where Eton Pharmaceuticals's Net 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.
Eton Pharmaceuticals (ETON) has a Net Margin % of 30.80% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Eton Pharmaceuticals and its competitors. According to the industry distribution chart, Eton Pharmaceuticals ranks #648 out of 959 companies in the Drug Manufacturers industry, placing it in the top 67.6%.
Is Eton Pharmaceuticals' Net Margin % too high?
Eton Pharmaceuticals' current Net Margin % is 30.80%. The Drug Manufacturers industry median Net Margin % is 5.32. Eton Pharmaceuticals' value of 30.80% is 478.9% above this industry median. Based on the distribution chart, Eton Pharmaceuticals ranks #648 out of 959 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Eton Pharmaceuticals has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Eton Pharmaceuticals' Net Margin % compare to COLL and ALVO?
According to the Drug Manufacturers industry distribution chart, Eton Pharmaceuticals ranks #648 out of 959 companies for Net Margin %. This places Eton Pharmaceuticals in the lower half of its industry. The industry median Net Margin % is 5.32. Eton Pharmaceuticals' value of 30.80% is 478.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Drug Manufacturers company?
The median Net Margin % among Drug Manufacturers companies is 5.32, based on 959 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eton Pharmaceuticals's current Net Margin % of 30.80% is 478.9% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Eton Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Net Margin % is 5.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eton Pharmaceuticals's current Net Margin % is 30.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eton Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Eton Pharmaceuticals (ETON) is currently considered Significantly Overvalued. The stock's GF Value™ is $19.98, compared to a current price of $58.51 — trading 192.8% above its estimated fair value. The current Net Margin % is 30.80% and 478.9% above the Drug Manufacturers industry median of 5.32. Eton Pharmaceuticals' 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Eton Pharmaceuticals (ETON), the current Net Margin % is 30.80% as of Jun. 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 Eton Pharmaceuticals (ETON) Overvalued in 2026?
Based on GuruFocus' analysis, Eton Pharmaceuticals stock appears to be overvalued.
The current stock price of $58.51 is trading 192.8% above its estimated GF Value™ of $19.98.
GuruFocus considers Eton Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for ETON:
Net Margin %: 30.80%
GF Value™: $19.98 vs. price of $58.51 (192.8% above fair value)
Industry Position: 478.9% above the Drug Manufacturers median (#648 of 959)
No single metric tells the full story. See the ETON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eton Pharmaceuticals Inc is a United States based specialty pharmaceutical company. The company is engaged in developing and commercializing pharmaceutical products to fulfill an unmet patient need. It has eight commercial rare disease products, INCRELEX, ALKINDI SPRINKLE, KHINDIVITM, GALZIN, PKU GOLIKE, Carglumic Acid, Betaine Anhydrous and Nitisinone. It also has five additional product candidates in late-stage development: ET-600, Amglidia, ET-700, ET-800 and ZENEO hydrocortisone autoinjector.
57GF Score
Get the complete analysis for ETON
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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