Compass GroupCMPGY +2.35%90 Gross Margin % is 25.55% as of Mar. 2026, which is 21% below its 10-year median of 32.54. GuruFocus rates CMPGY with a GF Score™ of 90/100 and a GF Value™ of $39.73 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 353 Restaurants companies, Compass Group ranks worse than 68.27% on this metric.
The historical rank and industry rank for Compass Group's Gross Margin % or its related term are showing as below:
CMPGY'
s Gross Margin % Range Over the Past 10 Years
Min: 31.54 Med: 32.54 Max: 33.41
Current: 33.26
During the past 13 years, the highestGross Margin % of Compass Group was 33.41%. The lowest was 31.54%. And the median was 32.54%.
CMPGY's Gross Margin % is ranked worse than 68.27% of 353
companies
in the Restaurants industry
Industry Median: 45.66
vs CMPGY: 33.26
Compass Group had a gross margin of 25.55% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Compass Group was 1.20% per year.
Compass Group (OTCPK:CMPGY) 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
Compass Group had a gross margin of 25.55% for the quarter that ended in Mar. 2026 => 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.
Compass Group Gross Margin % Related Terms
Compass Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Compass 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.
CMPGY vs MCD, SBUX, YUM: Gross Margin % Comparison
For the Restaurants subindustry, Compass 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.
Compass Group Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Compass Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Compass 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.
Compass Group (CMPGY) has a Gross Margin % of 25.55% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Compass Group and its competitors. This is 21% below median its historical median of 32.54. Over the past decade, Compass Group's Gross Margin % has ranged from 31.54 to 33.41. According to the industry distribution chart, Compass Group ranks #241 out of 353 companies in the Restaurants industry, placing it in the top 68.3%.
Is Compass Group's Gross Margin % too high?
Compass Group's current Gross Margin % of 25.55% is 21% below median its 10-year median of 32.54. Over the past 10 years, this metric has ranged from a low of 31.54 to a high of 33.41. The Restaurants industry median Gross Margin % is 45.66. Compass Group's value of 25.55% is 44% below this industry median. Based on the distribution chart, Compass Group ranks #241 out of 353 companies in the Restaurants industry, which is below the industry midpoint. Overall, Compass Group has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Compass Group's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Compass Group ranks #241 out of 353 companies for Gross Margin %. This places Compass Group in the lower half of its industry. The industry median Gross Margin % is 45.66. Compass Group's value of 25.55% is 44% below this benchmark. Historically, Compass Group's own Gross Margin % has ranged from 31.54 to 33.41 over the past decade. While the company's 10-year median is 32.54 vs. the industry median of 45.66, Compass 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 Restaurants company?
The median Gross Margin % among Restaurants companies is 45.66, based on 353 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. Compass Group's current Gross Margin % of 25.55% is 44% 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 Compass Group and its competitors. For the Restaurants industry, the median Gross Margin % is 45.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Compass Group's current Gross Margin % is 25.55%, which is 21% below median its own 10-year median of 32.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Compass Group stock overvalued right now?
Based on GuruFocus' analysis, Compass Group (CMPGY) is currently considered Modestly Undervalued. The stock's GF Value™ is $39.73, compared to a current price of $32.62 — trading 17.9% below its estimated fair value. The current Gross Margin % is 25.55%, which is 21% below median its 10-year median of 32.54 and 44% below the Restaurants industry median of 45.66. Compass Group's overall GF Score™ is 90/100 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 Compass Group (CMPGY), the current Gross Margin % is 25.55% as of Mar. 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 Compass Group (CMPGY) Overvalued in 2026?
Based on GuruFocus' analysis, Compass Group stock appears to be undervalued.
The current stock price of $32.62 is trading 17.9% below its estimated GF Value™ of $39.73.
GuruFocus considers Compass Group to be Modestly Undervalued.
Key valuation signals for CMPGY:
Gross Margin %: 25.55% (21% below median its 10-year median of 32.54)
GF Value™: $39.73 vs. price of $32.62 (17.9% below fair value)
Industry Position: 44% below the Restaurants median (#241 of 353)
No single metric tells the full story. See the CMPGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Compass Group is the largest foodservice company globally, operating in 30 countries and generating annual sales exceeding $30 billion. Compass' model is to operate on-premises catering facilities, rather than centralized industrial kitchens. Foodservice is Compass' focus and contributes more than 85% of revenue. Compass also has its own group purchasing organization, Foodbuy, which is responsible for over $30 billion in annual spending in the US. The company also provides premium support services to clients.
90GF Score
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