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AEON Stores (Hong Kong) CoFRA:AVK1 30 Gross Margin % is 28.86% as of Dec. 2025, which is 2% below its 10-year median of 29.34. GuruFocus rates FRA:AVK1 with a GF Score™ of 30/100 and a GF Value™ of €0.03 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,119 Retail - Cyclical companies, AEON Stores (Hong Kong) Co ranks worse than 64.88% on this metric.
AEON Stores (Hong Kong) Co (FRA:AVK1) 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
AEON Stores (Hong Kong) Co had a gross margin of 28.86% 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.
AEON Stores (Hong Kong) Co Gross Margin % Related Terms
AEON Stores (Hong Kong) Co 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.
For the Department Stores subindustry, AEON Stores (Hong Kong) Co'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.
AEON Stores (Hong Kong) Co Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, AEON Stores (Hong Kong) Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AEON Stores (Hong Kong) Co'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.
AEON Stores (Hong Kong) Co (FRA:AVK1) has a Gross Margin % of 28.86% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on AEON Stores (Hong Kong) Co and its competitors. This is near median its historical median of 29.34. Over the past decade, AEON Stores (Hong Kong) Co's Gross Margin % has ranged from 28.43 to 31.32. According to the industry distribution chart, AEON Stores (Hong Kong) Co ranks #726 out of 1119 companies in the Retail - Cyclical industry, placing it in the top 64.9%.
Is AEON Stores (Hong Kong) Co's Gross Margin % too high?
AEON Stores (Hong Kong) Co's current Gross Margin % of 28.86% is near median its 10-year median of 29.34. Over the past 10 years, this metric has ranged from a low of 28.43 to a high of 31.32. The Retail - Cyclical industry median Gross Margin % is 36.29. AEON Stores (Hong Kong) Co's value of 28.86% is 20.5% below this industry median. Based on the distribution chart, AEON Stores (Hong Kong) Co ranks #726 out of 1119 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, AEON Stores (Hong Kong) Co has a GF Score™ of 30/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AEON Stores (Hong Kong) Co's Gross Margin % compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, AEON Stores (Hong Kong) Co ranks #726 out of 1119 companies for Gross Margin %. This places AEON Stores (Hong Kong) Co in the lower half of its industry. The industry median Gross Margin % is 36.29. AEON Stores (Hong Kong) Co's value of 28.86% is 20.5% below this benchmark. Historically, AEON Stores (Hong Kong) Co's own Gross Margin % has ranged from 28.43 to 31.32 over the past decade. While the company's 10-year median is 29.34 vs. the industry median of 36.29, AEON Stores (Hong Kong) Co 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 36.29, based on 1,119 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. AEON Stores (Hong Kong) Co's current Gross Margin % of 28.86% is 20.5% 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 AEON Stores (Hong Kong) Co and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AEON Stores (Hong Kong) Co's current Gross Margin % is 28.86%, which is near median its own 10-year median of 29.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AEON Stores (Hong Kong) Co stock overvalued right now?
Based on GuruFocus' analysis, AEON Stores (Hong Kong) Co (FRA:AVK1) is currently considered Possible Value Trap. The stock's GF Value™ is €0.03, compared to a current price of €0.01 — trading 56.7% below its estimated fair value. The current Gross Margin % is 28.86%, which is near median its 10-year median of 29.34 and 20.5% below the Retail - Cyclical industry median of 36.29. AEON Stores (Hong Kong) Co's overall GF Score™ is 30/100 with 6 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 AEON Stores (Hong Kong) Co (FRA:AVK1), the current Gross Margin % is 28.86% 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 AEON Stores (Hong Kong) Co (FRA:AVK1) Overvalued in 2026?
Based on GuruFocus' analysis, AEON Stores (Hong Kong) Co stock appears to be undervalued.
The current stock price of €0.01 is trading 56.7% below its estimated GF Value™ of €0.03.
GuruFocus considers AEON Stores (Hong Kong) Co to be Possible Value Trap.
Key valuation signals for FRA:AVK1:
Gross Margin %: 28.86% (near median its 10-year median of 29.34)
GF Value™: €0.03 vs. price of €0.01 (56.7% below fair value)
Industry Position: 20.5% below the Retail - Cyclical median (#726 of 1119)
No single metric tells the full story. See the FRA:AVK1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AEON Stores (Hong Kong) Co Ltd and its subsidiaries are engaged in the operation of retail stores. It offers household products, clothing, and food products, among others. The company also provides facilities such as a lounge, free home delivery, free parking, gift wrapping, self-express, free ice pack, gift certificate selling, chilled lockers, trolley-lending, and customer voice services. Some of its brands are TOPVALU, HOME COORDY, iC innercasual and Kids Republic. It has two reportable segments: Hong Kong and Mainland China. The firm generates the majority of its revenue from Mainland China.
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