Coles GroupFRA:2OF 72 Gross Margin % is 26.96% as of Dec. 2025, which is 4% above its 10-year median of 25.81. GuruFocus rates FRA:2OF with a GF Score™ of 72/100 and a GF Value™ of €12.18 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 305 Retail - Defensive companies, Coles Group ranks better than 60% on this metric.
The historical rank and industry rank for Coles Group's Gross Margin % or its related term are showing as below:
FRA:2OF'
s Gross Margin % Range Over the Past 10 Years
Min: 23.95 Med: 25.81 Max: 26.64
Current: 26.64
During the past 8 years, the highestGross Margin % of Coles Group was 26.64%. The lowest was 23.95%. And the median was 25.81%.
FRA:2OF's Gross Margin % is ranked better than 60% of 305
companies
in the Retail - Defensive industry
Industry Median: 24.14
vs FRA:2OF: 26.64
Coles Group had a gross margin of 26.96% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Coles Group was 0.30% per year.
Coles Group (FRA:2OF) 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
Coles Group had a gross margin of 26.96% 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.
Coles Group Gross Margin % Related Terms
Coles Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Coles 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.
FRA:2OF vs KR, SFM, ACI: Gross Margin % Comparison
For the Grocery Stores subindustry, Coles 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.
Coles Group Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Coles Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Coles 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.
Coles Group (FRA:2OF) has a Gross Margin % of 26.96% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Coles Group and its competitors. This is near median its historical median of 25.81. Over the past decade, Coles Group's Gross Margin % has ranged from 23.95 to 26.64. According to the industry distribution chart, Coles Group ranks #122 out of 305 companies in the Retail - Defensive industry, placing it in the top 40%.
Is Coles Group's Gross Margin % too high?
Coles Group's current Gross Margin % of 26.96% is near median its 10-year median of 25.81. Over the past 10 years, this metric has ranged from a low of 23.95 to a high of 26.64. The Retail - Defensive industry median Gross Margin % is 24.14. Coles Group's value of 26.96% is 11.7% above this industry median. Based on the distribution chart, Coles Group ranks #122 out of 305 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Coles Group has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Coles Group's Gross Margin % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Coles Group ranks #122 out of 305 companies for Gross Margin %. This puts Coles Group in the upper half of its industry. The industry median Gross Margin % is 24.14. Coles Group's value of 26.96% is 11.7% above this benchmark. Historically, Coles Group's own Gross Margin % has ranged from 23.95 to 26.64 over the past decade. While the company's 10-year median is 25.81 vs. the industry median of 24.14, Coles 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 Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.14, based on 305 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. Coles Group's current Gross Margin % of 26.96% is 11.7% 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 Coles Group and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coles Group's current Gross Margin % is 26.96%, which is near median its own 10-year median of 25.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coles Group stock overvalued right now?
Based on GuruFocus' analysis, Coles Group (FRA:2OF) is currently considered Modestly Overvalued. The stock's GF Value™ is €12.18, compared to a current price of €14.20 — trading 16.6% above its estimated fair value. The current Gross Margin % is 26.96%, which is near median its 10-year median of 25.81 and 11.7% above the Retail - Defensive industry median of 24.14. Coles Group's overall GF Score™ is 72/100 with 8 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 Coles Group (FRA:2OF), the current Gross Margin % is 26.96% 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 Coles Group (FRA:2OF) Overvalued in 2026?
Based on GuruFocus' analysis, Coles Group stock appears to be overvalued.
The current stock price of €14.20 is trading 16.6% above its estimated GF Value™ of €12.18.
GuruFocus considers Coles Group to be Modestly Overvalued.
Key valuation signals for FRA:2OF:
Gross Margin %: 26.96% (near median its 10-year median of 25.81)
GF Value™: €12.18 vs. price of €14.20 (16.6% above fair value)
Industry Position: 11.7% above the Retail - Defensive median (#122 of 305)
No single metric tells the full story. See the FRA:2OF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coles is one of Australia's largest retailers, operating the second-largest supermarket chain behind market leader Woolworths, and the country's second-largest liquor chain. The group has an extensive store network of over 1,800 stores and roughly 80% of Australians live within a 10-minute drive from a Coles store. The retailer employs some 120,000 people, who process some 20 million individual customer transactions a week. This compares with Woolworths processing about 30 million customer transactions per week from Australia's population of 27 million.
72GF Score
Get the complete analysis for FRA:2OF
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