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
Barnes & Noble Education had a gross margin of 31.77% for the quarter that ended in Apr. 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.
Barnes & Noble Education Gross Margin % Related Terms
Barnes & Noble Education Gross Margin % Historical Data
* 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.
FRA:2BN0 vs BBW, BWMX, EVGO: Gross Margin % Comparison
For the Specialty Retail subindustry, Barnes & Noble Education'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.
Barnes & Noble Education Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Barnes & Noble Education's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Barnes & Noble Education'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.
Barnes & Noble Education (FRA:2BN0) has a Gross Margin % of 31.77% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Barnes & Noble Education and its competitors. This is 36% above median its historical median of 23.42. Over the past decade, Barnes & Noble Education's Gross Margin % has ranged from 16.38 to 25.94. According to the industry distribution chart, Barnes & Noble Education ranks #860 out of 1109 companies in the Retail - Cyclical industry, placing it in the top 77.5%.
Is Barnes & Noble Education's Gross Margin % too high?
Barnes & Noble Education's current Gross Margin % of 31.77% is 36% above median its 10-year median of 23.42. Over the past 10 years, this metric has ranged from a low of 16.38 to a high of 25.94. The Retail - Cyclical industry median Gross Margin % is 36.26. Barnes & Noble Education's value of 31.77% is 12.4% below this industry median. Based on the distribution chart, Barnes & Noble Education ranks #860 out of 1109 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Barnes & Noble Education has a GF Score™ of 47/100, reflecting its overall financial health beyond just this single metric.
How does Barnes & Noble Education's Gross Margin % compare to BBW and BWMX?
According to the Retail - Cyclical industry distribution chart, Barnes & Noble Education ranks #860 out of 1109 companies for Gross Margin %. This places Barnes & Noble Education in the lower half of its industry. The industry median Gross Margin % is 36.26. Barnes & Noble Education's value of 31.77% is 12.4% below this benchmark. Historically, Barnes & Noble Education's own Gross Margin % has ranged from 16.38 to 25.94 over the past decade. While the company's 10-year median is 23.42 vs. the industry median of 36.26, Barnes & Noble Education 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 36.26, based on 1,109 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. Barnes & Noble Education's current Gross Margin % of 31.77% is 12.4% 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 Barnes & Noble Education and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Barnes & Noble Education's current Gross Margin % is 31.77%, which is 36% above median its own 10-year median of 23.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Barnes & Noble Education stock overvalued right now?
Barnes & Noble Education (FRA:2BN0) has a current Gross Margin % of 31.77%. The stock's GF Value™ is €2.03, compared to a current price of €10.40 — trading 412.3% above its estimated fair value. The current Gross Margin % is 31.77%, which is 36% above median its 10-year median of 23.42 and 12.4% below the Retail - Cyclical industry median of 36.26. Barnes & Noble Education's overall GF Score™ is 47/100 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 Barnes & Noble Education (FRA:2BN0), the current Gross Margin % is 31.77% as of Apr. 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 Barnes & Noble Education (FRA:2BN0) Overvalued in 2026?
Based on GuruFocus' analysis, Barnes & Noble Education stock appears to be overvalued.
The current stock price of €10.40 is trading 412.3% above its estimated GF Value™ of €2.03.
Key valuation signals for FRA:2BN0:
Gross Margin %: 31.77% (36% above median its 10-year median of 23.42)
GF Value™: €2.03 vs. price of €10.40 (412.3% above fair value)
Industry Position: 12.4% below the Retail - Cyclical median (#860 of 1109)
No single metric tells the full story. See the FRA:2BN0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Barnes & Noble Education Inc is a contract operator of physical and virtual bookstores for college and university campuses and K-12 institutions across the United States. The company is also a textbook wholesaler and inventory management hardware and software provider. It offers course materials through physical and online bookstores, including new and used print textbooks, rental options, digital textbooks, and publisher-hosted digital courseware. Products are also offered directly to students through Textbooks.com. The majority of the company's revenue is derived from the sale of products through its bookstore locations, including virtual bookstores, and the bookstore affiliated e-commerce websites.
47GF Score
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