Woolworths HoldingsFRA:WN3 -1.45%78 Gross Margin % is 34.32% as of Dec. 2025, which is 7% below its 10-year median of 36.94. GuruFocus rates FRA:WN3 with a GF Score™ of 78/100 and a GF Value™ of €3.68 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Woolworths Holdings ranks worse than 54.43% 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
Woolworths Holdings had a gross margin of 34.32% 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.
Woolworths Holdings Gross Margin % Related Terms
Woolworths Holdings Gross Margin % Historical Data
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The historical data trend for Woolworths 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 Department Stores subindustry, Woolworths 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.
Woolworths Holdings Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Woolworths Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Woolworths 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.
Woolworths Holdings (FRA:WN3) has a Gross Margin % of 34.32% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Woolworths Holdings and its competitors. This is near median its historical median of 36.94. Over the past decade, Woolworths Holdings' Gross Margin % has ranged from 34.03 to 40.59. According to the industry distribution chart, Woolworths Holdings ranks #608 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 54.4%.
Is Woolworths Holdings' Gross Margin % too high?
Woolworths Holdings' current Gross Margin % of 34.32% is near median its 10-year median of 36.94. Over the past 10 years, this metric has ranged from a low of 34.03 to a high of 40.59. The Retail - Cyclical industry median Gross Margin % is 36.23. Woolworths Holdings' value of 34.32% is 5.3% below this industry median. Based on the distribution chart, Woolworths Holdings ranks #608 out of 1117 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Woolworths Holdings has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Woolworths Holdings' Gross Margin % compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Woolworths Holdings ranks #608 out of 1117 companies for Gross Margin %. This places Woolworths Holdings in the lower half of its industry. The industry median Gross Margin % is 36.23. Woolworths Holdings' value of 34.32% is 5.3% below this benchmark. Historically, Woolworths Holdings' own Gross Margin % has ranged from 34.03 to 40.59 over the past decade. While the company's 10-year median is 36.94 vs. the industry median of 36.23, Woolworths Holdings 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 36.23, based on 1,117 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. Woolworths Holdings's current Gross Margin % of 34.32% is 5.3% 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 Woolworths Holdings and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Woolworths Holdings's current Gross Margin % is 34.32%, which is near median its own 10-year median of 36.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Woolworths Holdings stock overvalued right now?
Based on GuruFocus' analysis, Woolworths Holdings (FRA:WN3) is currently considered Modestly Undervalued. The stock's GF Value™ is €3.68, compared to a current price of €2.72 — trading 26.1% below its estimated fair value. The current Gross Margin % is 34.32%, which is near median its 10-year median of 36.94 and 5.3% below the Retail - Cyclical industry median of 36.23. Woolworths Holdings' overall GF Score™ is 78/100 with 4 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 Woolworths Holdings (FRA:WN3), the current Gross Margin % is 34.32% 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 Woolworths Holdings (FRA:WN3) Overvalued in 2026?
Based on GuruFocus' analysis, Woolworths Holdings stock appears to be undervalued.
The current stock price of €2.72 is trading 26.1% below its estimated GF Value™ of €3.68.
GuruFocus considers Woolworths Holdings to be Modestly Undervalued.
Key valuation signals for FRA:WN3:
Gross Margin %: 34.32% (near median its 10-year median of 36.94)
GF Value™: €3.68 vs. price of €2.72 (26.1% below fair value)
Industry Position: 5.3% below the Retail - Cyclical median (#608 of 1117)
No single metric tells the full story. See the FRA:WN3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Woolworths Holdings Ltd is a southern hemisphere retail Group. Its current operations are conducted through its two operating subsidiaries. The segments involve: Fashion, Beauty and Home; Food; Logistics; Woolworths Financial Services; Country Road Group; and Treasury. It derives maximum revenue from Food Segment. Geographically, It operates iun South Africa, Australia and New Zealand and Rest of Africa.
78GF Score
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