Performance Food Group CoFRA:P5F +1.02%81 Gross Margin % is 11.90% as of Mar. 2026, which is 2% above its 10-year median of 11.66. GuruFocus rates FRA:P5F with a GF Score™ of 81/100 and a GF Value™ of €76.77 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 305 Retail - Defensive companies, Performance Food Group Co ranks worse than 81.31% on this metric.
Performance Food Group Co (FRA:P5F) 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
Performance Food Group Co had a gross margin of 11.90% for the quarter that ended in Mar. 2026 => No sustainable 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.
Performance Food Group Co Gross Margin % Related Terms
Performance Food Group 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.
FRA:P5F vs USFD, CHEF, UNFI: Gross Margin % Comparison
For the Food Distribution subindustry, Performance Food Group 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.
Performance Food Group Co Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Performance Food Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Performance Food Group 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.
Performance Food Group Co (FRA:P5F) has a Gross Margin % of 11.90% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Performance Food Group Co and its competitors. This is near median its historical median of 11.66. Over the past decade, Performance Food Group Co's Gross Margin % has ranged from 10.33 to 13.01. According to the industry distribution chart, Performance Food Group Co ranks #248 out of 305 companies in the Retail - Defensive industry, placing it in the top 81.3%.
Is Performance Food Group Co's Gross Margin % too high?
Performance Food Group Co's current Gross Margin % of 11.90% is near median its 10-year median of 11.66. Over the past 10 years, this metric has ranged from a low of 10.33 to a high of 13.01. The Retail - Defensive industry median Gross Margin % is 24.08. Performance Food Group Co's value of 11.90% is 50.6% below this industry median. Based on the distribution chart, Performance Food Group Co ranks #248 out of 305 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Performance Food Group Co has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Performance Food Group Co's Gross Margin % compare to USFD and CHEF?
According to the Retail - Defensive industry distribution chart, Performance Food Group Co ranks #248 out of 305 companies for Gross Margin %. This places Performance Food Group Co in the lower half of its industry. The industry median Gross Margin % is 24.08. Performance Food Group Co's value of 11.90% is 50.6% below this benchmark. Historically, Performance Food Group Co's own Gross Margin % has ranged from 10.33 to 13.01 over the past decade. While the company's 10-year median is 11.66 vs. the industry median of 24.08, Performance Food Group 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 - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.08, 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. Performance Food Group Co's current Gross Margin % of 11.90% is 50.6% 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 Performance Food Group Co 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. Performance Food Group Co's current Gross Margin % is 11.90%, which is near median its own 10-year median of 11.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Performance Food Group Co stock overvalued right now?
Based on GuruFocus' analysis, Performance Food Group Co (FRA:P5F) is currently considered Modestly Overvalued. The stock's GF Value™ is €76.77, compared to a current price of €99.00 — trading 29% above its estimated fair value. The current Gross Margin % is 11.90%, which is near median its 10-year median of 11.66 and 50.6% below the Retail - Defensive industry median of 24.08. Performance Food Group Co's overall GF Score™ is 81/100 with 7 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 Performance Food Group Co (FRA:P5F), the current Gross Margin % is 11.90% as of Mar. 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 Performance Food Group Co (FRA:P5F) Overvalued in 2026?
Based on GuruFocus' analysis, Performance Food Group Co stock appears to be overvalued.
The current stock price of €99.00 is trading 29% above its estimated GF Value™ of €76.77.
GuruFocus considers Performance Food Group Co to be Modestly Overvalued.
Key valuation signals for FRA:P5F:
Gross Margin %: 11.90% (near median its 10-year median of 11.66)
GF Value™: €76.77 vs. price of €99.00 (29% above fair value)
Industry Position: 50.6% below the Retail - Defensive median (#248 of 305)
No single metric tells the full story. See the FRA:P5F stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Performance Food Group Co , markets and distributes national and company-branded food and food-related products. The company also specializes in distributing candy, snacks, beverages, cigarettes, other tobacco products, health and beauty care products and other items to vending distributors, box retailers, theaters, convenience stores, drug stores, grocery stores, travel providers, and hospitality providers. The company has three reportable segments: Foodservice, Vistar, and Convenience.
81GF Score
Get the complete analysis for FRA:P5F
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