Australian VintageASX:AVG +3.13% Gross Margin % is 22.34% as of Dec. 2025, which is 15% below its 10-year median of 26.34. The stock has 5 warning signs investors should review. Among 205 Beverages - Alcoholic companies, Australian Vintage ranks worse than 84.88% on this metric.
Australian Vintage Ltd gross margin has been in long-term decline. The average rate of decline per year is -10.7%.
The historical rank and industry rank for Australian Vintage's Gross Margin % or its related term are showing as below:
ASX:AVG'
s Gross Margin % Range Over the Past 10 Years
Min: 10.63 Med: 26.34 Max: 32.26
Current: 24.39
During the past 13 years, the highestGross Margin % of Australian Vintage was 32.26%. The lowest was 10.63%. And the median was 26.34%.
ASX:AVG's Gross Margin % is ranked worse than 84.88% of 205
companies
in the Beverages - Alcoholic industry
Industry Median: 42.29
vs ASX:AVG: 24.39
Australian Vintage had a gross margin of 22.34% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Australian Vintage was -10.70% per year.
Australian Vintage (ASX:AVG) Gross Margin % Explanation
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
Australian Vintage had a gross margin of 22.34% for the quarter that ended in Dec. 2025 => 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.
Australian Vintage Gross Margin % Related Terms
Australian Vintage Gross Margin % Historical Data
* Premium members only.
The historical data trend for Australian Vintage'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 Beverages - Wineries & Distilleries subindustry, Australian Vintage'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.
Australian Vintage Gross Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Australian Vintage's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Australian Vintage'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.
Australian Vintage (ASX:AVG) has a Gross Margin % of 22.34% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Australian Vintage and its competitors. This is 15% below median its historical median of 26.34. Over the past decade, Australian Vintage's Gross Margin % has ranged from 10.63 to 32.26. According to the industry distribution chart, Australian Vintage ranks #174 out of 205 companies in the Beverages - Alcoholic industry, placing it in the top 84.9%.
Is Australian Vintage's Gross Margin % too high?
Australian Vintage's current Gross Margin % of 22.34% is 15% below median its 10-year median of 26.34. Over the past 10 years, this metric has ranged from a low of 10.63 to a high of 32.26. The Beverages - Alcoholic industry median Gross Margin % is 42.29. Australian Vintage's value of 22.34% is 47.2% below this industry median. Based on the distribution chart, Australian Vintage ranks #174 out of 205 companies in the Beverages - Alcoholic industry, which is in the bottom quartile relative to peers.
How does Australian Vintage's Gross Margin % compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Australian Vintage ranks #174 out of 205 companies for Gross Margin %. This places Australian Vintage in the lower half of its industry. The industry median Gross Margin % is 42.29. Australian Vintage's value of 22.34% is 47.2% below this benchmark. Historically, Australian Vintage's own Gross Margin % has ranged from 10.63 to 32.26 over the past decade. While the company's 10-year median is 26.34 vs. the industry median of 42.29, Australian Vintage 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 Beverages - Alcoholic company?
The median Gross Margin % among Beverages - Alcoholic companies is 42.29, based on 205 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. Australian Vintage's current Gross Margin % of 22.34% is 47.2% 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 Australian Vintage and its competitors. For the Beverages - Alcoholic industry, the median Gross Margin % is 42.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Vintage's current Gross Margin % is 22.34%, which is 15% below median its own 10-year median of 26.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Vintage stock overvalued right now?
Based on GuruFocus' analysis, Australian Vintage (ASX:AVG) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.14, compared to a current price of A$0.07 — trading 52.9% below its estimated fair value. The current Gross Margin % is 22.34%, which is 15% below median its 10-year median of 26.34 and 47.2% below the Beverages - Alcoholic industry median of 42.29. 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 Australian Vintage (ASX:AVG), the current Gross Margin % is 22.34% as of Dec. 2025. 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.
Australian Vintage Ltd is principally engaged in winemaking, wine marketing, and vineyard management in Australia. Its geographical segments are Australia / New Zealand; UK, Europe and Americas, and Asia. The company derives a majority of revenue from UK, Europe and Americas segment. UK, Europe and Americas segment is engaged in the packaging, sales, and marketing of wine in the United Kingdom, Europe and the Americas through wholesale, distributor and retail channels.
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