Treasury Wine EstatesFRA:T7W -3.55%55 Gross Margin % is 40.16% as of Dec. 2025, which is 1% below its 10-year median of 40.47. GuruFocus rates FRA:T7W with a GF Score™ of 55/100 and a GF Value™ of €6.16 (Possible Value Trap). The stock has 10 warning signs investors should review. Among 205 Beverages - Alcoholic companies, Treasury Wine Estates ranks better than 55.61% on this metric.
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
Treasury Wine Estates had a gross margin of 40.16% for the quarter that ended in Dec. 2025 => 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.
Treasury Wine Estates Gross Margin % Related Terms
Treasury Wine Estates Gross Margin % Historical Data
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The historical data trend for Treasury Wine Estates'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 Beverages - Wineries & Distilleries subindustry, Treasury Wine Estates'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.
Treasury Wine Estates Gross Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Treasury Wine Estates's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Treasury Wine Estates'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.
Treasury Wine Estates (FRA:T7W) has a Gross Margin % of 40.16% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Treasury Wine Estates and its competitors. This is near median its historical median of 40.47. Over the past decade, Treasury Wine Estates' Gross Margin % has ranged from 32.39 to 46.51. According to the industry distribution chart, Treasury Wine Estates ranks #91 out of 205 companies in the Beverages - Alcoholic industry, placing it in the top 44.4%.
Is Treasury Wine Estates' Gross Margin % too high?
Treasury Wine Estates' current Gross Margin % of 40.16% is near median its 10-year median of 40.47. Over the past 10 years, this metric has ranged from a low of 32.39 to a high of 46.51. The Beverages - Alcoholic industry median Gross Margin % is 42.20. Treasury Wine Estates' value of 40.16% is 4.8% below this industry median. Based on the distribution chart, Treasury Wine Estates ranks #91 out of 205 companies in the Beverages - Alcoholic industry, which is above the industry midpoint. Overall, Treasury Wine Estates has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Treasury Wine Estates' Gross Margin % compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Treasury Wine Estates ranks #91 out of 205 companies for Gross Margin %. This puts Treasury Wine Estates in the upper half of its industry. The industry median Gross Margin % is 42.20. Treasury Wine Estates' value of 40.16% is 4.8% below this benchmark. Historically, Treasury Wine Estates' own Gross Margin % has ranged from 32.39 to 46.51 over the past decade. While the company's 10-year median is 40.47 vs. the industry median of 42.20, Treasury Wine Estates 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 Beverages - Alcoholic company?
The median Gross Margin % among Beverages - Alcoholic companies is 42.20, based on 205 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. Treasury Wine Estates's current Gross Margin % of 40.16% is 4.8% 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 Treasury Wine Estates and its competitors. For the Beverages - Alcoholic industry, the median Gross Margin % is 42.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Treasury Wine Estates's current Gross Margin % is 40.16%, which is near median its own 10-year median of 40.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Treasury Wine Estates stock overvalued right now?
Based on GuruFocus' analysis, Treasury Wine Estates (FRA:T7W) is currently considered Possible Value Trap. The stock's GF Value™ is €6.16, compared to a current price of €2.67 — trading 56.6% below its estimated fair value. The current Gross Margin % is 40.16%, which is near median its 10-year median of 40.47 and 4.8% below the Beverages - Alcoholic industry median of 42.20. Treasury Wine Estates' overall GF Score™ is 55/100 with 10 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 Treasury Wine Estates (FRA:T7W), the current Gross Margin % is 40.16% 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 Treasury Wine Estates (FRA:T7W) Overvalued in 2026?
Based on GuruFocus' analysis, Treasury Wine Estates stock appears to be undervalued.
The current stock price of €2.67 is trading 56.6% below its estimated GF Value™ of €6.16.
GuruFocus considers Treasury Wine Estates to be Possible Value Trap.
Key valuation signals for FRA:T7W:
Gross Margin %: 40.16% (near median its 10-year median of 40.47)
GF Value™: €6.16 vs. price of €2.67 (56.6% below fair value)
Industry Position: 4.8% below the Beverages - Alcoholic median (#91 of 205)
No single metric tells the full story. See the FRA:T7W stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Treasury Wine Estates is an Australia-based global wine company that demerged from Foster's Group in 2011. The company is among the world's top five wine producers, and owns a portfolio that includes Australian labels such as Penfolds and Wolf Blass, US wines like Chateau St Jean and Sterling, and newly launched names such as 19 Crimes and Maison de Grand Esprit. An acquisition of Diageo's wine business in 2016 added additional US brands including BV and Stags' Leap. Treasury owns over 130 wineries, with more than 13,000 planted hectares.
55GF Score
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