CarnivalFRA:3B5 -2.51%75 Gross Margin % is 36.59% as of May. 2026, which is 3% below its 10-year median of 37.76. GuruFocus rates FRA:3B5 with a GF Score™ of 75/100 and a GF Value™ of €20.88 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 793 Travel & Leisure companies, Carnival ranks worse than 56.37% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Carnival's Gross Profit for the
three
months ended in May. 2026 was €2,087 Mil. Carnival's Revenue for the
three
months ended in May. 2026 was €5,704 Mil. Therefore, Carnival's Gross Margin % for the quarter that ended in May. 2026 was 36.59%.
The historical rank and industry rank for Carnival's Gross Margin % or its related term are showing as below:
FRA:3B5'
s Gross Margin % Range Over the Past 10 Years
Min: -143.97 Med: 37.76 Max: 42.75
Current: 39.74
During the past 13 years, the highestGross Margin % of Carnival was 42.75%. The lowest was -143.97%. And the median was 37.76%.
FRA:3B5's Gross Margin % is ranked worse than 56.37% of 793
companies
in the Travel & Leisure industry
Industry Median: 44.02
vs FRA:3B5: 39.74
Carnival had a gross margin of 36.59% for the quarter that ended in May. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Carnival was 0.00% per year.
Carnival (FRA:3B5) 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
Carnival had a gross margin of 36.59% for the quarter that ended in May. 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.
Carnival Gross Margin % Related Terms
Carnival Gross Margin % Historical Data
* Premium members only.
The historical data trend for Carnival'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:3B5 vs VIK, TCOM, EXPE: Gross Margin % Comparison
For the Travel Services subindustry, Carnival'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.
Carnival Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Carnival's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Carnival'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.
Carnival (FRA:3B5) has a Gross Margin % of 36.59% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Carnival and its competitors. This is near median its historical median of 37.76. According to the industry distribution chart, Carnival ranks #447 out of 793 companies in the Travel & Leisure industry, placing it in the top 56.4%.
Is Carnival's Gross Margin % too high?
Carnival's current Gross Margin % of 36.59% is near median its 10-year median of 37.76. The Travel & Leisure industry median Gross Margin % is 44.02. Carnival's value of 36.59% is 16.9% below this industry median. Based on the distribution chart, Carnival ranks #447 out of 793 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Carnival has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Carnival's Gross Margin % compare to VIK and TCOM?
According to the Travel & Leisure industry distribution chart, Carnival ranks #447 out of 793 companies for Gross Margin %. This places Carnival in the lower half of its industry. The industry median Gross Margin % is 44.02. Carnival's value of 36.59% is 16.9% below this benchmark. While the company's 10-year median is 37.76 vs. the industry median of 44.02, Carnival 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 Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.02, based on 793 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. Carnival's current Gross Margin % of 36.59% is 16.9% 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 Carnival and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carnival's current Gross Margin % is 36.59%, which is near median its own 10-year median of 37.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carnival stock overvalued right now?
Based on GuruFocus' analysis, Carnival (FRA:3B5) is currently considered Modestly Overvalued. The stock's GF Value™ is €20.88, compared to a current price of €24.90 — trading 19.3% above its estimated fair value. The current Gross Margin % is 36.59%, which is near median its 10-year median of 37.76 and 16.9% below the Travel & Leisure industry median of 44.02. Carnival's overall GF Score™ is 75/100 with 5 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 Carnival (FRA:3B5), the current Gross Margin % is 36.59% as of May. 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 Carnival (FRA:3B5) Overvalued in 2026?
Based on GuruFocus' analysis, Carnival stock appears to be overvalued.
The current stock price of €24.90 is trading 19.3% above its estimated GF Value™ of €20.88.
GuruFocus considers Carnival to be Modestly Overvalued.
Key valuation signals for FRA:3B5:
Gross Margin %: 36.59% (near median its 10-year median of 37.76)
GF Value™: €20.88 vs. price of €24.90 (19.3% above fair value)
Industry Position: 16.9% below the Travel & Leisure median (#447 of 793)
No single metric tells the full story. See the FRA:3B5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carnival is the largest global cruise company, with nearly 100 ships in service. Its portfolio of brands includes Carnival Cruise Lines, Holland America, Princess Cruises, and Seabourn in North America; P&O Cruises and Cunard Line in the United Kingdom; Aida in Germany; Costa Cruises in Southern Europe. It recently folded its P&O Australia brand into Carnival. The firm also owns Holland America Princess Alaska Tours in Alaska and the Canadian Yukon. Carnival's brands attracted nearly 14 million guests in 2025.
75GF Score
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