FRA:FGWA's Gross Margin % is not ranked
in the Retail - Defensive industry.
Industry Median: 24.08
vs FRA:FGWA: 31.43
Fairway Group Holdings had a gross margin of 31.13% for the quarter that ended in Dec. 2015 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Fairway Group Holdings was 0.00% per year.
Fairway Group Holdings (FRA:FGWA) 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
Fairway Group Holdings had a gross margin of 31.13% for the quarter that ended in Dec. 2015 => 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.
Fairway Group Holdings Gross Margin % Related Terms
Fairway Group Holdings Gross Margin % Historical Data
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The historical data trend for Fairway Group Holdings'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.
For the Grocery Stores subindustry, Fairway Group Holdings'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.
Fairway Group Holdings Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Fairway Group Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fairway Group Holdings'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.
Fairway Group Holdings (FRA:FGWA) has a Gross Margin % of 31.13% as of Dec. 2015. Gross margin is the ratio of total gross profit to net sales. View historical data on Fairway Group Holdings and its competitors. This is near median its historical median of 32.52. Over the past decade, Fairway Group Holdings' Gross Margin % has ranged from 31.31 to 33.55.
Is Fairway Group Holdings' Gross Margin % too high?
Fairway Group Holdings' current Gross Margin % of 31.13% is near median its 10-year median of 32.52. Over the past 10 years, this metric has ranged from a low of 31.31 to a high of 33.55. The Retail - Defensive industry median Gross Margin % is 24.08. Fairway Group Holdings' value of 31.13% is 29.3% above this industry median.
How does Fairway Group Holdings' Gross Margin % compare to IFMK?
Fairway Group Holdings' Gross Margin % of 31.13% can be compared against companies in the Retail - Defensive industry. The industry median Gross Margin % is 24.08. Fairway Group Holdings' value of 31.13% is 29.3% above this benchmark. Historically, Fairway Group Holdings' own Gross Margin % has ranged from 31.31 to 33.55 over the past decade. While the company's 10-year median is 32.52 vs. the industry median of 24.08, Fairway Group Holdings 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 24.08, based on 303 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. Fairway Group Holdings's current Gross Margin % of 31.13% is 29.3% 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 Fairway Group Holdings and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fairway Group Holdings's current Gross Margin % is 31.13%, which is near median its own 10-year median of 32.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fairway Group Holdings stock overvalued right now?
Fairway Group Holdings (FRA:FGWA) has a current Gross Margin % of 31.13%. The current Gross Margin % is 31.13%, which is near median its 10-year median of 32.52 and 29.3% above the Retail - Defensive industry median of 24.08. 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 Fairway Group Holdings (FRA:FGWA), the current Gross Margin % is 31.13% as of Dec. 2015. 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.
Fairway Group Holdings Corp along with its subsidiaries operates in the retail food industry. The company sells fresh, natural and organic products, prepared foods and hard to find specialty and gourmet offerings, along with a full assortment of conventional groceries. Its perishable product categories, which include producing, natural and organic, deli, specialty, cheese, butcher, seafood, bakery, coffee and kosher foods. The non-perishable product categories consist of conventional groceries as well as specialty foods.
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