Fletcher BuildingFRCEF 54 Gross Margin % is 31.44% as of Dec. 2025, which is 14% above its 10-year median of 27.68. GuruFocus rates FRCEF with a GF Score™ of 54/100 and a GF Value™ of $1.24. The stock has 7 warning signs investors should review. Among 397 Building Materials companies, Fletcher Building ranks better than 59.19% on this metric.
The historical rank and industry rank for Fletcher Building's Gross Margin % or its related term are showing as below:
FRCEF'
s Gross Margin % Range Over the Past 10 Years
Min: 17.91 Med: 27.68 Max: 31.07
Current: 29.51
During the past 13 years, the highestGross Margin % of Fletcher Building was 31.07%. The lowest was 17.91%. And the median was 27.68%.
FRCEF's Gross Margin % is ranked better than 59.19% of 397
companies
in the Building Materials industry
Industry Median: 26.2
vs FRCEF: 29.51
Fletcher Building had a gross margin of 31.44% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Fletcher Building was 1.60% per year.
Fletcher Building (OTCPK:FRCEF) 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
Fletcher Building had a gross margin of 31.44% 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.
Fletcher Building Gross Margin % Related Terms
Fletcher Building Gross Margin % Historical Data
* Premium members only.
The historical data trend for Fletcher Building'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 Building Materials subindustry, Fletcher Building'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.
Fletcher Building Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Fletcher Building's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fletcher Building'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.
Fletcher Building (FRCEF) has a Gross Margin % of 31.44% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Fletcher Building and its competitors. This is 14% above median its historical median of 27.68. Over the past decade, Fletcher Building's Gross Margin % has ranged from 17.91 to 31.07. According to the industry distribution chart, Fletcher Building ranks #162 out of 397 companies in the Building Materials industry, placing it in the top 40.8%.
Is Fletcher Building's Gross Margin % too high?
Fletcher Building's current Gross Margin % of 31.44% is 14% above median its 10-year median of 27.68. Over the past 10 years, this metric has ranged from a low of 17.91 to a high of 31.07. The Building Materials industry median Gross Margin % is 26.20. Fletcher Building's value of 31.44% is 20% above this industry median. Based on the distribution chart, Fletcher Building ranks #162 out of 397 companies in the Building Materials industry, which is above the industry midpoint. Overall, Fletcher Building has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Fletcher Building's Gross Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Fletcher Building ranks #162 out of 397 companies for Gross Margin %. This puts Fletcher Building in the upper half of its industry. The industry median Gross Margin % is 26.20. Fletcher Building's value of 31.44% is 20% above this benchmark. Historically, Fletcher Building's own Gross Margin % has ranged from 17.91 to 31.07 over the past decade. While the company's 10-year median is 27.68 vs. the industry median of 26.20, Fletcher Building 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 Building Materials company?
The median Gross Margin % among Building Materials companies is 26.20, based on 397 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. Fletcher Building's current Gross Margin % of 31.44% is 20% 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 Fletcher Building and its competitors. For the Building Materials industry, the median Gross Margin % is 26.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fletcher Building's current Gross Margin % is 31.44%, which is 14% above median its own 10-year median of 27.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fletcher Building stock overvalued right now?
Fletcher Building (FRCEF) has a current Gross Margin % of 31.44%. The stock's GF Value™ is $1.24, compared to a current price of $1.63 — trading 31.5% above its estimated fair value. The current Gross Margin % is 31.44%, which is 14% above median its 10-year median of 27.68 and 20% above the Building Materials industry median of 26.20. Fletcher Building's overall GF Score™ is 54/100 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 Fletcher Building (FRCEF), the current Gross Margin % is 31.44% 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 Fletcher Building (FRCEF) Overvalued in 2026?
Based on GuruFocus' analysis, Fletcher Building stock appears to be overvalued.
The current stock price of $1.63 is trading 31.5% above its estimated GF Value™ of $1.24.
Key valuation signals for FRCEF:
Gross Margin %: 31.44% (14% above median its 10-year median of 27.68)
GF Value™: $1.24 vs. price of $1.63 (31.5% above fair value)
Industry Position: 20% above the Building Materials median (#162 of 397)
No single metric tells the full story. See the FRCEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fletcher Building is a New Zealand-based building materials company with operations focused in New Zealand, but also extending to Australia. It has a conglomerate structure with diverse operations across concrete, building products, steel, retail distribution, and development. Most revenue is derived from new house construction, with smaller earnings contributions from commercial and infrastructure construction.
54GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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