Synlait MilkASX:SM1 +1.54%40 Gross Margin % is -0.18% as of Jan. 2026. GuruFocus rates ASX:SM1 with a GF Score™ of 40/100 and a GF Value™ of A$0.26 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,901 Consumer Packaged Goods companies, Synlait Milk ranks worse than 97% on this metric.
Synlait Milk Ltd gross margin has been in long-term decline. The average rate of decline per year is -17.4%.
The historical rank and industry rank for Synlait Milk's Gross Margin % or its related term are showing as below:
ASX:SM1'
s Gross Margin % Range Over the Past 10 Years
Min: 1 Med: 14.62 Max: 21.94
Current: 1
During the past 13 years, the highestGross Margin % of Synlait Milk was 21.94%. The lowest was 1.00%. And the median was 14.62%.
ASX:SM1's Gross Margin % is ranked worse than 97% of 1901
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs ASX:SM1: 1.00
Synlait Milk had a gross margin of -0.18% for the quarter that ended in Jan. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Synlait Milk was -17.40% per year.
Synlait Milk (ASX:SM1) 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
Synlait Milk had a gross margin of -0.18% for the quarter that ended in Jan. 2026 => No sustainable 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.
Synlait Milk Gross Margin % Related Terms
Synlait Milk Gross Margin % Historical Data
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The historical data trend for Synlait Milk'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:SM1 vs KHC, GIS, JBS: Gross Margin % Comparison
For the Packaged Foods subindustry, Synlait Milk'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.
Synlait Milk Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Synlait Milk's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Synlait Milk'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.
Synlait Milk (ASX:SM1) has a Gross Margin % of -0.18% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Synlait Milk and its competitors. Over the past decade, Synlait Milk's Gross Margin % has ranged from 1.00 to 21.94. According to the industry distribution chart, Synlait Milk ranks #1844 out of 1901 companies in the Consumer Packaged Goods industry, placing it in the top 97%.
Is Synlait Milk's Gross Margin % too high?
Synlait Milk's current Gross Margin % is -0.18%. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 21.94. Based on the distribution chart, Synlait Milk ranks #1844 out of 1901 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Synlait Milk has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Synlait Milk's Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Synlait Milk ranks #1844 out of 1901 companies for Gross Margin %. This places Synlait Milk in the lower half of its industry. The industry median Gross Margin % is 26.37. Historically, Synlait Milk's own Gross Margin % has ranged from 1.00 to 21.94 over the past decade. 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,901 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. 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 Synlait Milk and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Synlait Milk's current Gross Margin % is -0.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Synlait Milk stock overvalued right now?
Based on GuruFocus' analysis, Synlait Milk (ASX:SM1) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.26, compared to a current price of A$0.33 — trading 26.9% above its estimated fair value. The current Gross Margin % is -0.18%. Synlait Milk's overall GF Score™ is 40/100 with 4 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 Synlait Milk (ASX:SM1), the current Gross Margin % is -0.18% as of Jan. 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 Synlait Milk (ASX:SM1) Overvalued in 2026?
Based on GuruFocus' analysis, Synlait Milk stock appears to be overvalued.
The current stock price of A$0.33 is trading 26.9% above its estimated GF Value™ of A$0.26.
GuruFocus considers Synlait Milk to be Significantly Overvalued.
Key valuation signals for ASX:SM1:
Gross Margin %: -0.18%
GF Value™: A$0.26 vs. price of A$0.33 (26.9% above fair value)
No single metric tells the full story. See the ASX:SM1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Synlait Milk Ltd is a dairy processing company that benefits from a differentiated milk supply and operating environment in New Zealand. The business operates within one industry that includes the manufacture of milk powder and its related products, liquid milk, cheese, and butter. Its segment are Synlait and Dairyworks, out of which it derives maximum revenue from Synlait segment.
40GF Score
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