HORNBACH Holding AG and Co KGaA (HAM:HBH) 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
HORNBACH Holding AG and Co KGaA had a gross margin of 34.95% for the quarter that ended in May. 2026 => 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.
HORNBACH Holding AG and Co KGaA Gross Margin % Related Terms
HORNBACH Holding AG and Co KGaA 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.
HORNBACH Holding AG and Co KGaA Gross Margin % Chart
HAM:HBH vs HD, LOW, FND: Gross Margin % Comparison
For the Home Improvement Retail subindustry, HORNBACH Holding AG and Co KGaA'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.
HORNBACH Holding AG and Co KGaA Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, HORNBACH Holding AG and Co KGaA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HORNBACH Holding AG and Co KGaA'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.
HORNBACH Holding AG and Co KGaA (HAM:HBH) has a Gross Margin % of 34.95% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on HORNBACH Holding AG and Co KGaA and its competitors. This is near median its historical median of 35.14. Over the past decade, HORNBACH Holding AG and Co KGaA's Gross Margin % has ranged from 33.38 to 36.58. According to the industry distribution chart, HORNBACH Holding AG and Co KGaA ranks #586 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 52.7%.
Is HORNBACH Holding AG and Co KGaA's Gross Margin % too high?
HORNBACH Holding AG and Co KGaA's current Gross Margin % of 34.95% is near median its 10-year median of 35.14. Over the past 10 years, this metric has ranged from a low of 33.38 to a high of 36.58. The Retail - Cyclical industry median Gross Margin % is 36.26. HORNBACH Holding AG and Co KGaA's value of 34.95% is 3.6% below this industry median. Based on the distribution chart, HORNBACH Holding AG and Co KGaA ranks #586 out of 1113 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, HORNBACH Holding AG and Co KGaA has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does HORNBACH Holding AG and Co KGaA's Gross Margin % compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, HORNBACH Holding AG and Co KGaA ranks #586 out of 1113 companies for Gross Margin %. This places HORNBACH Holding AG and Co KGaA in the lower half of its industry. The industry median Gross Margin % is 36.26. HORNBACH Holding AG and Co KGaA's value of 34.95% is 3.6% below this benchmark. Historically, HORNBACH Holding AG and Co KGaA's own Gross Margin % has ranged from 33.38 to 36.58 over the past decade. While the company's 10-year median is 35.14 vs. the industry median of 36.26, HORNBACH Holding AG and Co KGaA 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 36.26, based on 1,113 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. HORNBACH Holding AG and Co KGaA's current Gross Margin % of 34.95% is 3.6% 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 HORNBACH Holding AG and Co KGaA and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HORNBACH Holding AG and Co KGaA's current Gross Margin % is 34.95%, which is near median its own 10-year median of 35.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HORNBACH Holding AG and Co KGaA stock overvalued right now?
Based on GuruFocus' analysis, HORNBACH Holding AG and Co KGaA (HAM:HBH) is currently considered Fairly Valued. The stock's GF Value™ is €82.15, compared to a current price of €77.90 — trading 5.2% below its estimated fair value. The current Gross Margin % is 34.95%, which is near median its 10-year median of 35.14 and 3.6% below the Retail - Cyclical industry median of 36.26. HORNBACH Holding AG and Co KGaA's overall GF Score™ is 72/100 with 3 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 HORNBACH Holding AG and Co KGaA (HAM:HBH), the current Gross Margin % is 34.95% as of May. 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 HORNBACH Holding AG and Co KGaA (HAM:HBH) Overvalued in 2026?
Based on GuruFocus' analysis, HORNBACH Holding AG and Co KGaA stock appears to be undervalued.
The current stock price of €77.90 is trading 5.2% below its estimated GF Value™ of €82.15.
GuruFocus considers HORNBACH Holding AG and Co KGaA to be Fairly Valued.
Key valuation signals for HAM:HBH:
Gross Margin %: 34.95% (near median its 10-year median of 35.14)
GF Value™: €82.15 vs. price of €77.90 (5.2% below fair value)
Industry Position: 3.6% below the Retail - Cyclical median (#586 of 1113)
No single metric tells the full story. See the HAM:HBH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HORNBACH Holding AG and Co KGaA Business Description
HORNBACH Holding AG and Co KGaA and its subsidiaries are involved in the business of Retail and Real estate segments. The company's operating segment include HORNBACH Baumarkt subgroup; HORNBACH Baustoff Union GmbH subgroup, and HORNBACH Immobilien AG subgroup. It generates maximum revenue from the HORNBACH Baumarkt subgroup segment. Geographically, it derives a majority of revenue from Germany. Products are structured in the following divisions: Hardware/Electrical, Paint/Wallpaper/Flooring, Construction Materials/Timber/Prefabricated Components, Sanitary/Tiles, and Garden. The company operates in Germany and other European countries.
72GF Score
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