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Core & MainCNM -1.80%87 Gross Margin % is 26.71% as of Jul. 2026, which is 2% above its 10-year median of 26.10. GuruFocus rates CNM with a GF Score™ of 87/100 and a GF Value™ of $55.37 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 160 Industrial Distribution companies, Core & Main ranks better than 56.25% on this metric.
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
Core & Main had a gross margin of 26.71% for the quarter that ended in Jul. 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.
Core & Main Gross Margin % Related Terms
Core & Main Gross Margin % Historical Data
* Premium members only.
The historical data trend for Core & Main'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 Industrial Distribution subindustry, Core & Main'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.
Core & Main Gross Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Core & Main's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Core & Main'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.
Core & Main (CNM) has a Gross Margin % of 26.71% as of Jul. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Core & Main and its competitors. This is near median its historical median of 26.10. Over the past decade, Core & Main's Gross Margin % has ranged from 22.12 to 27.13. According to the industry distribution chart, Core & Main ranks #70 out of 160 companies in the Industrial Distribution industry, placing it in the top 43.7%.
Is Core & Main's Gross Margin % too high?
Core & Main's current Gross Margin % of 26.71% is near median its 10-year median of 26.10. Over the past 10 years, this metric has ranged from a low of 22.12 to a high of 27.13. The Industrial Distribution industry median Gross Margin % is 24.34. Core & Main's value of 26.71% is 9.7% above this industry median. Based on the distribution chart, Core & Main ranks #70 out of 160 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, Core & Main has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Core & Main's Gross Margin % compare to POOL and MSM?
According to the Industrial Distribution industry distribution chart, Core & Main ranks #70 out of 160 companies for Gross Margin %. This puts Core & Main in the upper half of its industry. The industry median Gross Margin % is 24.34. Core & Main's value of 26.71% is 9.7% above this benchmark. Historically, Core & Main's own Gross Margin % has ranged from 22.12 to 27.13 over the past decade. While the company's 10-year median is 26.10 vs. the industry median of 24.34, Core & Main 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 an Industrial Distribution company?
The median Gross Margin % among Industrial Distribution companies is 24.34, based on 160 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. Core & Main's current Gross Margin % of 26.71% is 9.7% 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 Core & Main and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Core & Main's current Gross Margin % is 26.71%, which is near median its own 10-year median of 26.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Core & Main stock overvalued right now?
Based on GuruFocus' analysis, Core & Main (CNM) is currently considered Modestly Undervalued. The stock's GF Value™ is $55.37, compared to a current price of $40.85 — trading 26.2% below its estimated fair value. The current Gross Margin % is 26.71%, which is near median its 10-year median of 26.10 and 9.7% above the Industrial Distribution industry median of 24.34. Core & Main's overall GF Score™ is 87/100 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 Core & Main (CNM), the current Gross Margin % is 26.71% as of Jul. 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 Core & Main (CNM) Overvalued in 2026?
Based on GuruFocus' analysis, Core & Main stock appears to be undervalued.
The current stock price of $40.85 is trading 26.2% below its estimated GF Value™ of $55.37.
GuruFocus considers Core & Main to be Modestly Undervalued.
Key valuation signals for CNM:
Gross Margin %: 26.71% (near median its 10-year median of 26.10)
GF Value™: $55.37 vs. price of $40.85 (26.2% below fair value)
Industry Position: 9.7% above the Industrial Distribution median (#70 of 160)
No single metric tells the full story. See the CNM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Core & Main is a leading specialty distributor with a focus on water, wastewater, storm drainage, and fire protection products. The company provides solutions to municipalities, private water companies, and professional contractors across municipal, nonresidential, and residential end markets. The company's specialty products and services are used in the maintenance, repair, replacement, and construction of water and fire protection infrastructure.
87GF Score
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