Coats GroupCHIX:COAL +0.58%61 Gross Margin % is 39.17% as of Dec. 2025, which is 13% above its 10-year median of 34.71. GuruFocus rates CHIX:COAL with a GF Score™ of 61/100 and a GF Value™ of £0.74 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,024 Manufacturing - Apparel & Accessories companies, Coats Group ranks better than 63.57% on this metric.
The historical rank and industry rank for Coats Group's Gross Margin % or its related term are showing as below:
CHIX:COAl'
s Gross Margin % Range Over the Past 10 Years
Min: 30.24 Med: 34.71 Max: 39.17
Current: 39.17
During the past 13 years, the highestGross Margin % of Coats Group was 39.17%. The lowest was 30.24%. And the median was 34.71%.
CHIX:COAl's Gross Margin % is ranked better than 63.57% of 1024
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 28.415
vs CHIX:COAl: 39.17
Coats Group had a gross margin of 39.17% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Coats Group was 4.40% per year.
Coats Group (CHIX:COAl) 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
Coats Group had a gross margin of 39.17% 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.
Coats Group Gross Margin % Related Terms
Coats Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Coats 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.
For the Textile Manufacturing subindustry, Coats 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.
Coats Group Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Coats Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Coats 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.
Coats Group (CHIX:COAL) has a Gross Margin % of 39.17% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Coats Group and its competitors. This is 13% above median its historical median of 34.71. Over the past decade, Coats Group's Gross Margin % has ranged from 30.24 to 39.17. According to the industry distribution chart, Coats Group ranks #373 out of 1024 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 36.4%.
Is Coats Group's Gross Margin % too high?
Coats Group's current Gross Margin % of 39.17% is 13% above median its 10-year median of 34.71. Over the past 10 years, this metric has ranged from a low of 30.24 to a high of 39.17. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.42. Coats Group's value of 39.17% is 37.8% above this industry median. Based on the distribution chart, Coats Group ranks #373 out of 1024 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Coats Group has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Coats Group's Gross Margin % compare to AIN?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Coats Group ranks #373 out of 1024 companies for Gross Margin %. This puts Coats Group in the upper half of its industry. The industry median Gross Margin % is 28.42. Coats Group's value of 39.17% is 37.8% above this benchmark. Historically, Coats Group's own Gross Margin % has ranged from 30.24 to 39.17 over the past decade. While the company's 10-year median is 34.71 vs. the industry median of 28.42, Coats Group 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. Coats Group's current Gross Margin % of 39.17% is 37.8% 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 Coats Group 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. Coats Group's current Gross Margin % is 39.17%, which is 13% above median its own 10-year median of 34.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coats Group stock overvalued right now?
Based on GuruFocus' analysis, Coats Group (CHIX:COAL) is currently considered Fairly Valued. The stock's GF Value™ is £0.74, compared to a current price of £0.79 — trading 6.4% above its estimated fair value. The current Gross Margin % is 39.17%, which is 13% above median its 10-year median of 34.71 and 37.8% above the Manufacturing - Apparel & Accessories industry median of 28.42. Coats Group's overall GF Score™ is 61/100 with 3 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 Coats Group (CHIX:COAL), the current Gross Margin % is 39.17% 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 Coats Group (CHIX:COAL) Overvalued in 2026?
Based on GuruFocus' analysis, Coats Group stock appears to be overvalued.
The current stock price of £0.79 is trading 6.4% above its estimated GF Value™ of £0.74.
GuruFocus considers Coats Group to be Fairly Valued.
Key valuation signals for CHIX:COAL:
Gross Margin %: 39.17% (13% above median its 10-year median of 34.71)
GF Value™: £0.74 vs. price of £0.79 (6.4% above fair value)
Industry Position: 37.8% above the Manufacturing - Apparel & Accessories median (#373 of 1024)
No single metric tells the full story. See the CHIX:COAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coats Group PLC is a firm manufacturing thread for industrial and consumer use. Its product portfolio includes industrial thread and knitting yarns used in the apparel and footwear industries, zips, trims, composites, and fabrics. The company's customers are grouped into two segments; Apparel which is also the key revenue generating customer segment and Footwear. The company generates a majority of its revenue from China and Hong Kong and the rest from Vietnam, India, United Kingdom and other regions.
61GF Score
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