DAVIDsTEAFRA:DAT -0.44%38 Gross Margin % is 58.56% as of Jan. 2026, which is 14% above its 10-year median of 51.49. GuruFocus rates FRA:DAT with a GF Score™ of 38/100 and a GF Value™ of €0.13. The stock has 2 warning signs investors should review. Among 1,899 Consumer Packaged Goods companies, DAVIDsTEA ranks better than 89.63% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. DAVIDsTEA's Gross Profit for the
six
months ended in Jan. 2026 was €22.07 Mil. DAVIDsTEA's Revenue for the
six
months ended in Jan. 2026 was €37.69 Mil. Therefore, DAVIDsTEA's Gross Margin % for the quarter that ended in Jan. 2026 was 58.56%.
The historical rank and industry rank for DAVIDsTEA's Gross Margin % or its related term are showing as below:
FRA:DAT'
s Gross Margin % Range Over the Past 10 Years
Min: 40.87 Med: 51.49 Max: 58.56
Current: 58.56
During the past 12 years, the highestGross Margin % of DAVIDsTEA was 58.56%. The lowest was 40.87%. And the median was 51.49%.
FRA:DAT's Gross Margin % is ranked better than 89.63% of 1899
companies
in the Consumer Packaged Goods industry
Industry Median: 26.36
vs FRA:DAT: 58.56
DAVIDsTEA had a gross margin of 58.56% for the quarter that ended in Jan. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for DAVIDsTEA was 3.50% per year.
DAVIDsTEA (FRA:DAT) 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
DAVIDsTEA had a gross margin of 58.56% for the quarter that ended in Jan. 2026 => Durable competitive advantage
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.
DAVIDsTEA Gross Margin % Related Terms
DAVIDsTEA Gross Margin % Historical Data
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The historical data trend for DAVIDsTEA'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:DAT vs STCB, JVA, HRGN: Gross Margin % Comparison
For the Packaged Foods subindustry, DAVIDsTEA'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.
DAVIDsTEA Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, DAVIDsTEA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where DAVIDsTEA'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.
DAVIDsTEA (FRA:DAT) has a Gross Margin % of 58.56% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on DAVIDsTEA and its competitors. This is 14% above median its historical median of 51.49. Over the past decade, DAVIDsTEA's Gross Margin % has ranged from 40.87 to 58.56. According to the industry distribution chart, DAVIDsTEA ranks #197 out of 1899 companies in the Consumer Packaged Goods industry, placing it in the top 10.4%.
Is DAVIDsTEA's Gross Margin % too high?
DAVIDsTEA's current Gross Margin % of 58.56% is 14% above median its 10-year median of 51.49. Over the past 10 years, this metric has ranged from a low of 40.87 to a high of 58.56. The Consumer Packaged Goods industry median Gross Margin % is 26.36. DAVIDsTEA's value of 58.56% is 122.2% above this industry median. Based on the distribution chart, DAVIDsTEA ranks #197 out of 1899 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, DAVIDsTEA has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does DAVIDsTEA's Gross Margin % compare to STCB and JVA?
According to the Consumer Packaged Goods industry distribution chart, DAVIDsTEA ranks #197 out of 1899 companies for Gross Margin %. This places DAVIDsTEA in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.36. DAVIDsTEA's value of 58.56% is 122.2% above this benchmark. Historically, DAVIDsTEA's own Gross Margin % has ranged from 40.87 to 58.56 over the past decade. While the company's 10-year median is 51.49 vs. the industry median of 26.36, DAVIDsTEA 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.36, based on 1,899 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. DAVIDsTEA's current Gross Margin % of 58.56% is 122.2% 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 DAVIDsTEA and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DAVIDsTEA's current Gross Margin % is 58.56%, which is 14% above median its own 10-year median of 51.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DAVIDsTEA stock overvalued right now?
DAVIDsTEA (FRA:DAT) has a current Gross Margin % of 58.56%. The stock's GF Value™ is €0.13, compared to a current price of €0.46 — trading 250.8% above its estimated fair value. The current Gross Margin % is 58.56%, which is 14% above median its 10-year median of 51.49 and 122.2% above the Consumer Packaged Goods industry median of 26.36. DAVIDsTEA's overall GF Score™ is 38/100 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 DAVIDsTEA (FRA:DAT), the current Gross Margin % is 58.56% as of Jan. 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 DAVIDsTEA (FRA:DAT) Overvalued in 2026?
Based on GuruFocus' analysis, DAVIDsTEA stock appears to be overvalued.
The current stock price of €0.46 is trading 250.8% above its estimated GF Value™ of €0.13.
Key valuation signals for FRA:DAT:
Gross Margin %: 58.56% (14% above median its 10-year median of 51.49)
GF Value™: €0.13 vs. price of €0.46 (250.8% above fair value)
Industry Position: 122.2% above the Consumer Packaged Goods median (#197 of 1899)
No single metric tells the full story. See the FRA:DAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DAVIDsTEA Inc operates in Canada's packaged foods market. The company operates as a branded retailer of different types of tea, the company serves through DAVIDsTEA stores and its website, davidstea.com. Its business involves the sale of three main products: Tea, Tea Accessories, and Food and Beverages. Tea products such as loose-leaf teas, pre-packaged teas, tea sachets, tea-related accessories, and gifts through its e-commerce platform account for the majority of the company's sales. The company has two operating segments, Canada and the USA. Geographically, its key revenue-generating market is Canada.
38GF Score
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