Kits EyecareKTYCF -1.37%74 Gross Margin % is 40.93% as of Mar. 2026, which is 28% above its 10-year median of 31.92. GuruFocus rates KTYCF with a GF Score™ of 74/100 and a GF Value™ of $10.23 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,117 Retail - Cyclical companies, Kits Eyecare ranks better than 51.12% 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
Kits Eyecare had a gross margin of 40.93% for the quarter that ended in Mar. 2026 => 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.
Kits Eyecare Gross Margin % Related Terms
Kits Eyecare Gross Margin % Historical Data
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The historical data trend for Kits Eyecare'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.
KTYCF vs CASY, WSM, ULTA: Gross Margin % Comparison
For the Specialty Retail subindustry, Kits Eyecare'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.
Kits Eyecare Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Kits Eyecare's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kits Eyecare'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.
Kits Eyecare (KTYCF) has a Gross Margin % of 40.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kits Eyecare and its competitors. This is 28% above median its historical median of 31.92. Over the past decade, Kits Eyecare's Gross Margin % has ranged from 25.35 to 36.80. According to the industry distribution chart, Kits Eyecare ranks #546 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 48.9%.
Is Kits Eyecare's Gross Margin % too high?
Kits Eyecare's current Gross Margin % of 40.93% is 28% above median its 10-year median of 31.92. Over the past 10 years, this metric has ranged from a low of 25.35 to a high of 36.80. The Retail - Cyclical industry median Gross Margin % is 36.25. Kits Eyecare's value of 40.93% is 12.9% above this industry median. Based on the distribution chart, Kits Eyecare ranks #546 out of 1117 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Kits Eyecare has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kits Eyecare's Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Kits Eyecare ranks #546 out of 1117 companies for Gross Margin %. This puts Kits Eyecare in the upper half of its industry. The industry median Gross Margin % is 36.25. Kits Eyecare's value of 40.93% is 12.9% above this benchmark. Historically, Kits Eyecare's own Gross Margin % has ranged from 25.35 to 36.80 over the past decade. While the company's 10-year median is 31.92 vs. the industry median of 36.25, Kits Eyecare 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.25, 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. Kits Eyecare's current Gross Margin % of 40.93% is 12.9% 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 Kits Eyecare and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kits Eyecare's current Gross Margin % is 40.93%, which is 28% above median its own 10-year median of 31.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kits Eyecare stock overvalued right now?
Based on GuruFocus' analysis, Kits Eyecare (KTYCF) is currently considered Modestly Undervalued. The stock's GF Value™ is $10.23, compared to a current price of $8.86 — trading 13.4% below its estimated fair value. The current Gross Margin % is 40.93%, which is 28% above median its 10-year median of 31.92 and 12.9% above the Retail - Cyclical industry median of 36.25. Kits Eyecare's overall GF Score™ is 74/100 with 1 warning sign 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 Kits Eyecare (KTYCF), the current Gross Margin % is 40.93% as of Mar. 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 Kits Eyecare (KTYCF) Overvalued in 2026?
Based on GuruFocus' analysis, Kits Eyecare stock appears to be undervalued.
The current stock price of $8.86 is trading 13.4% below its estimated GF Value™ of $10.23.
GuruFocus considers Kits Eyecare to be Modestly Undervalued.
Key valuation signals for KTYCF:
Gross Margin %: 40.93% (28% above median its 10-year median of 31.92)
GF Value™: $10.23 vs. price of $8.86 (13.4% below fair value)
Industry Position: 12.9% above the Retail - Cyclical median (#546 of 1117)
No single metric tells the full story. See the KTYCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kits Eyecare Ltd is a vertically integrated, digitally native eyecare platform that offers its customers access to a vast selection of the highest quality contact lenses and eyeglasses, including its exclusive KITS-designed products, and a suite of online vision tools. It operates a network of optical e-commerce websites, including KITS.com, KITS.ca, OptiContacts.com, and ContactsExpress.ca. The company's contact lens partners include Alcon, Bausch & Lomb, CooperVision, and Johnson & Johnson, and its glasses partners include Gucci, Oakley, Prive Revaux, Ray-Ban and Tom Ford. Its geographic locations are the United States; and Canada and Other which generates the majority of its revenue from the United States.
74GF Score
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