Nongfu Spring CoHAM:7NF -2.37%98 Gross Margin % is 60.72% as of Dec. 2025, which is 5% above its 10-year median of 58.08. GuruFocus rates HAM:7NF with a GF Score™ of 98/100 and a GF Value™ of €6.67. The stock has 2 warning signs investors should review. Among 115 Beverages - Non-Alcoholic companies, Nongfu Spring Co ranks better than 93.04% on this metric.
The historical rank and industry rank for Nongfu Spring Co's Gross Margin % or its related term are showing as below:
HAM:7NF'
s Gross Margin % Range Over the Past 10 Years
Min: 53.34 Med: 58.08 Max: 60.53
Current: 60.53
During the past 9 years, the highestGross Margin % of Nongfu Spring Co was 60.53%. The lowest was 53.34%. And the median was 58.08%.
HAM:7NF's Gross Margin % is ranked better than 93.04% of 115
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 38.43
vs HAM:7NF: 60.53
Nongfu Spring Co had a gross margin of 60.72% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nongfu Spring Co was 0.30% per year.
Nongfu Spring Co (HAM:7NF) 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
Nongfu Spring Co had a gross margin of 60.72% 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.
Nongfu Spring Co Gross Margin % Related Terms
Nongfu Spring Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nongfu Spring Co'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.
HAM:7NF vs KO, PEP, MNST: Gross Margin % Comparison
For the Beverages - Non-Alcoholic subindustry, Nongfu Spring 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.
Nongfu Spring Co Gross Margin % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Nongfu Spring Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nongfu Spring 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.
Nongfu Spring Co (HAM:7NF) has a Gross Margin % of 60.72% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Nongfu Spring Co and its competitors. This is near median its historical median of 58.08. Over the past decade, Nongfu Spring Co's Gross Margin % has ranged from 53.34 to 60.53. According to the industry distribution chart, Nongfu Spring Co ranks #8 out of 115 companies in the Beverages - Non-Alcoholic industry, placing it in the top 7%.
Is Nongfu Spring Co's Gross Margin % too high?
Nongfu Spring Co's current Gross Margin % of 60.72% is near median its 10-year median of 58.08. Over the past 10 years, this metric has ranged from a low of 53.34 to a high of 60.53. The Beverages - Non-Alcoholic industry median Gross Margin % is 38.43. Nongfu Spring Co's value of 60.72% is 58% above this industry median. Based on the distribution chart, Nongfu Spring Co ranks #8 out of 115 companies in the Beverages - Non-Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Nongfu Spring Co has a GF Score™ of 98/100, reflecting its overall financial health beyond just this single metric.
How does Nongfu Spring Co's Gross Margin % compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, Nongfu Spring Co ranks #8 out of 115 companies for Gross Margin %. This places Nongfu Spring Co in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 38.43. Nongfu Spring Co's value of 60.72% is 58% above this benchmark. Historically, Nongfu Spring Co's own Gross Margin % has ranged from 53.34 to 60.53 over the past decade. While the company's 10-year median is 58.08 vs. the industry median of 38.43, Nongfu Spring Co 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 Beverages - Non-Alcoholic company?
The median Gross Margin % among Beverages - Non-Alcoholic companies is 38.43, based on 115 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. Nongfu Spring Co's current Gross Margin % of 60.72% is 58% 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 Nongfu Spring Co and its competitors. For the Beverages - Non-Alcoholic industry, the median Gross Margin % is 38.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nongfu Spring Co's current Gross Margin % is 60.72%, which is near median its own 10-year median of 58.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nongfu Spring Co stock overvalued right now?
Nongfu Spring Co (HAM:7NF) has a current Gross Margin % of 60.72%. The stock's GF Value™ is €6.67, compared to a current price of €4.70 — trading 29.5% below its estimated fair value. The current Gross Margin % is 60.72%, which is near median its 10-year median of 58.08 and 58% above the Beverages - Non-Alcoholic industry median of 38.43. Nongfu Spring Co's overall GF Score™ is 98/100 with 2 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 Nongfu Spring Co (HAM:7NF), the current Gross Margin % is 60.72% 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 Nongfu Spring Co (HAM:7NF) Overvalued in 2026?
Based on GuruFocus' analysis, Nongfu Spring Co stock appears to be undervalued.
The current stock price of €4.70 is trading 29.5% below its estimated GF Value™ of €6.67.
Key valuation signals for HAM:7NF:
Gross Margin %: 60.72% (near median its 10-year median of 58.08)
GF Value™: €6.67 vs. price of €4.70 (29.5% below fair value)
Industry Position: 58% above the Beverages - Non-Alcoholic median (#8 of 115)
No single metric tells the full story. See the HAM:7NF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1996, Nongfu Spring is a leading beverage producer with products primarily in the packaged water, ready-to-drink tea, juice, coffee, and functional beverages sectors in China. It holds the number-one share in the bottled water market; this segment contributed approximately 40% of the firm's revenue and EBIT in 2024.
98GF Score
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