MerinoASX:MNC Gross Margin % is 112.21% as of Dec. 2025, which is 10% below its 10-year median of 125.35. The stock has 3 warning signs investors should review. Among 1,024 Manufacturing - Apparel & Accessories companies, Merino ranks better than 99.8% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Merino's Gross Profit for the
six
months ended in Dec. 2025 was A$1.06 Mil. Merino's Revenue for the
six
months ended in Dec. 2025 was A$0.94 Mil. Therefore, Merino's Gross Margin % for the quarter that ended in Dec. 2025 was 112.21%.
The historical rank and industry rank for Merino's Gross Margin % or its related term are showing as below:
ASX:MNC'
s Gross Margin % Range Over the Past 10 Years
Min: 89.59 Med: 125.35 Max: 168.31
Current: 168.31
During the past 4 years, the highestGross Margin % of Merino was 168.31%. The lowest was 89.59%. And the median was 125.35%.
ASX:MNC's Gross Margin % is ranked better than 99.8% of 1024
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 28.415
vs ASX:MNC: 168.31
Merino had a gross margin of 112.21% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Merino was 0.00% per year.
Merino (ASX:MNC) 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
Merino had a gross margin of 112.21% for the quarter that ended in Dec. 2025 => 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.
Merino Gross Margin % Related Terms
Merino Gross Margin % Historical Data
* Premium members only.
The historical data trend for Merino'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.
ASX:MNC vs RL, LEVI, VFC: Gross Margin % Comparison
For the Apparel Manufacturing subindustry, Merino'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.
Merino Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Merino's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Merino'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.
Merino (ASX:MNC) has a Gross Margin % of 112.21% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Merino and its competitors. This is 10% below median its historical median of 125.35. Over the past decade, Merino's Gross Margin % has ranged from 89.59 to 168.31. According to the industry distribution chart, Merino ranks #2 out of 1024 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 0.2%.
Is Merino's Gross Margin % too high?
Merino's current Gross Margin % of 112.21% is 10% below median its 10-year median of 125.35. Over the past 10 years, this metric has ranged from a low of 89.59 to a high of 168.31. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.42. Merino's value of 112.21% is 294.9% above this industry median. Based on the distribution chart, Merino ranks #2 out of 1024 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers.
How does Merino's Gross Margin % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Merino ranks #2 out of 1024 companies for Gross Margin %. This places Merino in the top 0% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 28.42. Merino's value of 112.21% is 294.9% above this benchmark. Historically, Merino's own Gross Margin % has ranged from 89.59 to 168.31 over the past decade. While the company's 10-year median is 125.35 vs. the industry median of 28.42, Merino 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 Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.42, based on 1,024 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. Merino's current Gross Margin % of 112.21% is 294.9% 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 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 Merino and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merino's current Gross Margin % is 112.21%, which is 10% below median its own 10-year median of 125.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merino stock overvalued right now?
Merino (ASX:MNC) has a current Gross Margin % of 112.21%. The current Gross Margin % is 112.21%, which is 10% below median its 10-year median of 125.35 and 294.9% above the Manufacturing - Apparel & Accessories industry median of 28.42. 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 Merino (ASX:MNC), the current Gross Margin % is 112.21% 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.
Merino & Co Ltd Export and distribution of merino wool products. It manufactures, markets, and sells wool apparel and accessories, predominantly featuring fine Merino wool, to both Australian and international markets. The Entity has two reporting segments, Australia and China, and the majority of its revenue is generated from Australia.
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