Pick N Pay StoresJSE:PIK -1.45%65 Gross Margin % is 19.37% as of Feb. 2026, which is 3% above its 10-year median of 18.86. GuruFocus rates JSE:PIK with a GF Score™ of 65/100 and a GF Value™ of R24.22 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Pick N Pay Stores ranks worse than 80.04% on this metric.
Pick N Pay Stores Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Pick N Pay Stores's Gross Margin % or its related term are showing as below:
JSE:PIK'
s Gross Margin % Range Over the Past 10 Years
Min: 18.06 Med: 18.86 Max: 19.79
Current: 18.8
During the past 13 years, the highestGross Margin % of Pick N Pay Stores was 19.79%. The lowest was 18.06%. And the median was 18.86%.
JSE:PIK's Gross Margin % is ranked worse than 80.04% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs JSE:PIK: 18.80
Pick N Pay Stores had a gross margin of 19.37% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Pick N Pay Stores was -1.20% per year.
Pick N Pay Stores (JSE:PIK) 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
Pick N Pay Stores had a gross margin of 19.37% for the quarter that ended in Feb. 2026 => 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.
Pick N Pay Stores Gross Margin % Related Terms
Pick N Pay Stores Gross Margin % Historical Data
* Premium members only.
The historical data trend for Pick N Pay Stores'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 Department Stores subindustry, Pick N Pay Stores'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.
Pick N Pay Stores Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Pick N Pay Stores's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pick N Pay Stores'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.
Pick N Pay Stores (JSE:PIK) has a Gross Margin % of 19.37% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Pick N Pay Stores and its competitors. This is near median its historical median of 18.86. Over the past decade, Pick N Pay Stores' Gross Margin % has ranged from 18.06 to 19.79. According to the industry distribution chart, Pick N Pay Stores ranks #894 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 80%.
Is Pick N Pay Stores' Gross Margin % too high?
Pick N Pay Stores' current Gross Margin % of 19.37% is near median its 10-year median of 18.86. Over the past 10 years, this metric has ranged from a low of 18.06 to a high of 19.79. The Retail - Cyclical industry median Gross Margin % is 36.23. Pick N Pay Stores' value of 19.37% is 46.5% below this industry median. Based on the distribution chart, Pick N Pay Stores ranks #894 out of 1117 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Pick N Pay Stores has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pick N Pay Stores' Gross Margin % compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Pick N Pay Stores ranks #894 out of 1117 companies for Gross Margin %. This places Pick N Pay Stores in the lower half of its industry. The industry median Gross Margin % is 36.23. Pick N Pay Stores' value of 19.37% is 46.5% below this benchmark. Historically, Pick N Pay Stores' own Gross Margin % has ranged from 18.06 to 19.79 over the past decade. While the company's 10-year median is 18.86 vs. the industry median of 36.23, Pick N Pay Stores 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 36.23, based on 1,117 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. Pick N Pay Stores's current Gross Margin % of 19.37% is 46.5% 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 Pick N Pay Stores and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pick N Pay Stores's current Gross Margin % is 19.37%, which is near median its own 10-year median of 18.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pick N Pay Stores stock overvalued right now?
Based on GuruFocus' analysis, Pick N Pay Stores (JSE:PIK) is currently considered Modestly Undervalued. The stock's GF Value™ is R24.22, compared to a current price of R20.46 — trading 15.5% below its estimated fair value. The current Gross Margin % is 19.37%, which is near median its 10-year median of 18.86 and 46.5% below the Retail - Cyclical industry median of 36.23. Pick N Pay Stores' overall GF Score™ is 65/100 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 Pick N Pay Stores (JSE:PIK), the current Gross Margin % is 19.37% as of Feb. 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 Pick N Pay Stores (JSE:PIK) Overvalued in 2026?
Based on GuruFocus' analysis, Pick N Pay Stores stock appears to be undervalued.
The current stock price of R20.46 is trading 15.5% below its estimated GF Value™ of R24.22.
GuruFocus considers Pick N Pay Stores to be Modestly Undervalued.
Key valuation signals for JSE:PIK:
Gross Margin %: 19.37% (near median its 10-year median of 18.86)
GF Value™: R24.22 vs. price of R20.46 (15.5% below fair value)
Industry Position: 46.5% below the Retail - Cyclical median (#894 of 1117)
No single metric tells the full story. See the JSE:PIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pick N Pay Stores Ltd is a South African multiformat and multichannel retailer. The company operates in South Africa, Namibia, Botswana, Zambia, Mauritius, Swaziland, and Lesotho. The company offers food and groceries, clothing, general merchandise, and services across multiple store formats, both franchised and owned. The customer base is mainly represented by middle-income South African consumer. The portfolio of stores is composed of supermarkets, hypermarkets, local shops, express shops, clothing shops, liquor stores, and others.
65GF Score
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