Innovation Beverage GroupIBG -4.72%10 Gross Margin % is 73.79% as of Jun. 2025, which is 11% above its 10-year median of 66.49. GuruFocus rates IBG with a GF Score™ of 10/100. The stock has 3 warning signs investors should review. Among 205 Beverages - Alcoholic companies, Innovation Beverage Group ranks better than 93.66% on this metric.
Innovation Beverage Group (NAS:IBG) 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
Innovation Beverage Group had a gross margin of 73.79% for the quarter that ended in Jun. 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.
Innovation Beverage Group Gross Margin % Related Terms
Innovation Beverage Group 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.
For the Beverages - Wineries & Distilleries subindustry, Innovation Beverage Group'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.
Innovation Beverage Group Gross Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Innovation Beverage Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Innovation Beverage Group'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.
Innovation Beverage Group (IBG) has a Gross Margin % of 73.79% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Innovation Beverage Group and its competitors. This is 11% above median its historical median of 66.49. Over the past decade, Innovation Beverage Group's Gross Margin % has ranged from 53.11 to 79.74. According to the industry distribution chart, Innovation Beverage Group ranks #13 out of 205 companies in the Beverages - Alcoholic industry, placing it in the top 6.3%.
Is Innovation Beverage Group's Gross Margin % too high?
Innovation Beverage Group's current Gross Margin % of 73.79% is 11% above median its 10-year median of 66.49. Over the past 10 years, this metric has ranged from a low of 53.11 to a high of 79.74. The Beverages - Alcoholic industry median Gross Margin % is 42.20. Innovation Beverage Group's value of 73.79% is 74.9% above this industry median. Based on the distribution chart, Innovation Beverage Group ranks #13 out of 205 companies in the Beverages - Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Innovation Beverage Group has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Innovation Beverage Group's Gross Margin % compare to SBEV and BF.B?
According to the Beverages - Alcoholic industry distribution chart, Innovation Beverage Group ranks #13 out of 205 companies for Gross Margin %. This places Innovation Beverage Group in the top 6% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 42.20. Innovation Beverage Group's value of 73.79% is 74.9% above this benchmark. Historically, Innovation Beverage Group's own Gross Margin % has ranged from 53.11 to 79.74 over the past decade. While the company's 10-year median is 66.49 vs. the industry median of 42.20, Innovation Beverage Group 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 - 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. Innovation Beverage Group's current Gross Margin % of 73.79% is 74.9% 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 Innovation Beverage Group 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. Innovation Beverage Group's current Gross Margin % is 73.79%, which is 11% above median its own 10-year median of 66.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Innovation Beverage Group stock overvalued right now?
Innovation Beverage Group (IBG) has a current Gross Margin % of 73.79%. The current Gross Margin % is 73.79%, which is 11% above median its 10-year median of 66.49 and 74.9% above the Beverages - Alcoholic industry median of 42.20. Innovation Beverage Group's overall GF Score™ is 10/100 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 Innovation Beverage Group (IBG), the current Gross Margin % is 73.79% as of Jun. 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.
Innovation Beverage Group Ltd is a developer, manufacturer, marketer, exporter, and retailer of a growing beverage portfolio of 70 formulations across 14 alcoholic and non-alcoholic brands. The company's focus is on premium and super premium brands. The Group has two reportable geographic segments: Australia and the United States.
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