BABBABB +1.75%57 Gross Margin % is 0.00% as of Feb. 2026. GuruFocus rates BABB with a GF Score™ of 57/100 and a GF Value™ of $0.80 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,902 Consumer Packaged Goods companies, BAB ranks worse than 52576.18% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. BAB's Gross Profit for the
three
months ended in Feb. 2026 was $0.72 Mil. BAB's Revenue for the
three
months ended in Feb. 2026 was $0.72 Mil. Therefore, BAB's Gross Margin % for the quarter that ended in Feb. 2026 was 0.00%.
If there's no value for Cost of Goods Sold, then Gross Margin % is not calculated.
The historical rank and industry rank for BAB's Gross Margin % or its related term are showing as below:
BABB's Gross Margin % is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 26.37 * Ranked among companies with meaningful Gross Margin % only.
BAB had a gross margin of N/A% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for BAB was 0.00% per year.
BAB (OTCPK:BABB) 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
BAB had a gross margin of N/A% for the quarter that ended in Feb. 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.
BAB Gross Margin % Related Terms
BAB Gross Margin % Historical Data
* Premium members only.
The historical data trend for BAB'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.
BABB vs MTTCF, GPOX, INBP: Gross Margin % Comparison
For the Packaged Foods subindustry, BAB'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.
BAB Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, BAB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where BAB'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.
BAB (BABB) has a Gross Margin % of 0.00% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on BAB and its competitors. According to the industry distribution chart, BAB ranks #999999 out of 1902 companies in the Consumer Packaged Goods industry.
Is BAB's Gross Margin % too high?
BAB's current Gross Margin % is 0.00%. Based on the distribution chart, BAB ranks #999999 out of 1902 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, BAB has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BAB's Gross Margin % compare to MTTCF and GPOX?
According to the Consumer Packaged Goods industry distribution chart, BAB ranks #999999 out of 1902 companies for Gross Margin %. This places BAB in the lower half of its industry. The industry median Gross Margin % is 26.37. 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 1,902 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 BAB 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. BAB's current Gross Margin % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAB stock overvalued right now?
Based on GuruFocus' analysis, BAB (BABB) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.80, compared to a current price of $0.90 — trading 12.5% above its estimated fair value. The current Gross Margin % is 0.00%. BAB's overall GF Score™ is 57/100 with 2 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 BAB (BABB), the current Gross Margin % is 0.00% as of Feb. 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 BAB (BABB) Overvalued in 2026?
Based on GuruFocus' analysis, BAB stock appears to be overvalued.
The current stock price of $0.90 is trading 12.5% above its estimated GF Value™ of $0.80.
GuruFocus considers BAB to be Modestly Overvalued.
Key valuation signals for BABB:
Gross Margin %: 0.00%
GF Value™: $0.80 vs. price of $0.90 (12.5% above fair value)
No single metric tells the full story. See the BABB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAB Inc franchises and licenses bagel and muffin retail units under the Apple Bagels, My Favorite Muffin, and SweetDuet trade names. The company also sell its trademark bagels, muffins and coffee through nontraditional channels of distribution including under licensing agreements with Kohr Bros. Frozen Custard and Green Beans Coffee. It has approximately 61 franchise units and 4 licensed units in operation in 18 states across the United States and one international location.
57GF Score
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