Temple & Webster GroupASX:TPW +5.59%83 Gross Margin % is 31.37% as of Dec. 2025, which is 28% below its 10-year median of 43.45. GuruFocus rates ASX:TPW with a GF Score™ of 83/100 and a GF Value™ of A$15.50 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Temple & Webster Group ranks worse than 58.82% on this metric.
ASX:TPW's Gross Margin % is ranked worse than 58.82% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs ASX:TPW: 31.60
Temple & Webster Group had a gross margin of 31.37% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Temple & Webster Group was -7.60% per year.
Temple & Webster Group (ASX:TPW) 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
Temple & Webster Group had a gross margin of 31.37% 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.
Temple & Webster Group Gross Margin % Related Terms
Temple & Webster Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Temple & Webster Group'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:TPW vs CASY, WSM, ULTA: Gross Margin % Comparison
For the Specialty Retail subindustry, Temple & Webster Group'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.
Temple & Webster Group Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Temple & Webster Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Temple & Webster Group'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.
Temple & Webster Group (ASX:TPW) has a Gross Margin % of 31.37% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Temple & Webster Group and its competitors. This is 28% below median its historical median of 43.45. Over the past decade, Temple & Webster Group's Gross Margin % has ranged from 31.60 to 45.35. According to the industry distribution chart, Temple & Webster Group ranks #657 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 58.8%.
Is Temple & Webster Group's Gross Margin % too high?
Temple & Webster Group's current Gross Margin % of 31.37% is 28% below median its 10-year median of 43.45. Over the past 10 years, this metric has ranged from a low of 31.60 to a high of 45.35. The Retail - Cyclical industry median Gross Margin % is 36.23. Temple & Webster Group's value of 31.37% is 13.4% below this industry median. Based on the distribution chart, Temple & Webster Group ranks #657 out of 1117 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Temple & Webster Group has a GF Score™ of 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Temple & Webster Group's Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Temple & Webster Group ranks #657 out of 1117 companies for Gross Margin %. This places Temple & Webster Group in the lower half of its industry. The industry median Gross Margin % is 36.23. Temple & Webster Group's value of 31.37% is 13.4% below this benchmark. Historically, Temple & Webster Group's own Gross Margin % has ranged from 31.60 to 45.35 over the past decade. While the company's 10-year median is 43.45 vs. the industry median of 36.23, Temple & Webster Group 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 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. Temple & Webster Group's current Gross Margin % of 31.37% is 13.4% 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 Temple & Webster Group and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Temple & Webster Group's current Gross Margin % is 31.37%, which is 28% below median its own 10-year median of 43.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Temple & Webster Group stock overvalued right now?
Based on GuruFocus' analysis, Temple & Webster Group (ASX:TPW) is currently considered Possible Value Trap. The stock's GF Value™ is A$15.50, compared to a current price of A$6.04 — trading 61% below its estimated fair value. The current Gross Margin % is 31.37%, which is 28% below median its 10-year median of 43.45 and 13.4% below the Retail - Cyclical industry median of 36.23. Temple & Webster Group's overall GF Score™ is 83/100 with 5 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 Temple & Webster Group (ASX:TPW), the current Gross Margin % is 31.37% 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.
Is Temple & Webster Group (ASX:TPW) Overvalued in 2026?
Based on GuruFocus' analysis, Temple & Webster Group stock appears to be undervalued.
The current stock price of A$6.04 is trading 61% below its estimated GF Value™ of A$15.50.
GuruFocus considers Temple & Webster Group to be Possible Value Trap.
Key valuation signals for ASX:TPW:
Gross Margin %: 31.37% (28% below median its 10-year median of 43.45)
GF Value™: A$15.50 vs. price of A$6.04 (61% below fair value)
Industry Position: 13.4% below the Retail - Cyclical median (#657 of 1117)
No single metric tells the full story. See the ASX:TPW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Temple & Webster Group Ltd is a pure play online retailer of furniture and homewares. Some of the company's products include office Furniture, Rugs, Bed & Bath, Decor, Lighting, Outdoor, Office, and others. The Group operates in one segment, being the sale of furniture, homewares, and home improvement products through its online platform.
83GF Score
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