Choppies EnterprisesJSE:CHP 41 Gross Margin % is 19.78% as of Dec. 2025, which is 6% below its 10-year median of 21.15. GuruFocus rates JSE:CHP with a GF Score™ of 41/100 and a GF Value™ of R0.83 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 305 Retail - Defensive companies, Choppies Enterprises ranks worse than 61.64% 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
Choppies Enterprises had a gross margin of 19.78% for the quarter that ended in Dec. 2025 => No sustainable 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.
Choppies Enterprises Gross Margin % Related Terms
Choppies Enterprises Gross Margin % Historical Data
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The historical data trend for Choppies Enterprises'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 Grocery Stores subindustry, Choppies Enterprises'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.
Choppies Enterprises Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Choppies Enterprises's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Choppies Enterprises'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.
Choppies Enterprises (JSE:CHP) has a Gross Margin % of 19.78% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Choppies Enterprises and its competitors. This is near median its historical median of 21.15. Over the past decade, Choppies Enterprises' Gross Margin % has ranged from 19.11 to 23.11. According to the industry distribution chart, Choppies Enterprises ranks #188 out of 305 companies in the Retail - Defensive industry, placing it in the top 61.6%.
Is Choppies Enterprises' Gross Margin % too high?
Choppies Enterprises' current Gross Margin % of 19.78% is near median its 10-year median of 21.15. Over the past 10 years, this metric has ranged from a low of 19.11 to a high of 23.11. The Retail - Defensive industry median Gross Margin % is 24.08. Choppies Enterprises' value of 19.78% is 17.9% below this industry median. Based on the distribution chart, Choppies Enterprises ranks #188 out of 305 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Choppies Enterprises has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Choppies Enterprises' Gross Margin % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Choppies Enterprises ranks #188 out of 305 companies for Gross Margin %. This places Choppies Enterprises in the lower half of its industry. The industry median Gross Margin % is 24.08. Choppies Enterprises' value of 19.78% is 17.9% below this benchmark. Historically, Choppies Enterprises' own Gross Margin % has ranged from 19.11 to 23.11 over the past decade. While the company's 10-year median is 21.15 vs. the industry median of 24.08, Choppies Enterprises 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 - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.08, based on 305 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. Choppies Enterprises's current Gross Margin % of 19.78% is 17.9% 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 Choppies Enterprises and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Choppies Enterprises's current Gross Margin % is 19.78%, which is near median its own 10-year median of 21.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Choppies Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Choppies Enterprises (JSE:CHP) is currently considered Significantly Overvalued. The stock's GF Value™ is R0.83, compared to a current price of R1.40 — trading 68.7% above its estimated fair value. The current Gross Margin % is 19.78%, which is near median its 10-year median of 21.15 and 17.9% below the Retail - Defensive industry median of 24.08. Choppies Enterprises' overall GF Score™ is 41/100 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 Choppies Enterprises (JSE:CHP), the current Gross Margin % is 19.78% 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 Choppies Enterprises (JSE:CHP) Overvalued in 2026?
Based on GuruFocus' analysis, Choppies Enterprises stock appears to be overvalued.
The current stock price of R1.40 is trading 68.7% above its estimated GF Value™ of R0.83.
GuruFocus considers Choppies Enterprises to be Significantly Overvalued.
Key valuation signals for JSE:CHP:
Gross Margin %: 19.78% (near median its 10-year median of 21.15)
GF Value™: R0.83 vs. price of R1.40 (68.7% above fair value)
Industry Position: 17.9% below the Retail - Defensive median (#188 of 305)
No single metric tells the full story. See the JSE:CHP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Choppies Enterprises Ltd operates a supermarket chain in Botswana. The company's supermarkets offer international food brands, fast-moving consumer goods products, and Choppies private label products. Its product offerings include groceries, fresh fruit and vegetables, bakery goods, butchery items, takeaways, and value-added financial services. The company's segments include Botswana, Zambia, Zimbabwe, Kamoso Liquor, Rest of Kamoso, and Namibia, with the majority of its revenue derived from Botswana.
41GF Score
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