Al Eid Food Co (KUW:ALEID) Gross Margin %: 14.15% (As of Sep. 2025) — 11% Below Median

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KUW:ALEID Al Eid Food Co KUW:ALEID
75 GF Score
Price KWD0.22
GF Value KWD0.25
! 6 Warning Signs
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What is Al Eid Food Co Gross Margin %?

Al Eid Food Co KUW:ALEID 75 Gross Margin % is 14.15% as of Sep. 2025, which is 11% below its 10-year median of 15.83. GuruFocus rates KUW:ALEID with a GF Score™ of 75/100 and a GF Value™ of KWD0.25. The stock has 6 warning signs investors should review.

Gross Margin % is calculated as gross profit divided by its revenue. Al Eid Food Co's Gross Profit for the three months ended in Sep. 2025 was KWD1.56 Mil. Al Eid Food Co's Revenue for the three months ended in Sep. 2025 was KWD11.03 Mil. Therefore, Al Eid Food Co's Gross Margin % for the quarter that ended in Sep. 2025 was 14.15%.

Warning Sign:

Al Eid Food Co gross margin has been in long-term decline. The average rate of decline per year is -1.3%.


The historical rank and industry rank for Al Eid Food Co's Gross Margin % or its related term are showing as below:

KUW:ALEID' s Gross Margin % Range Over the Past 10 Years
Min: 13.51   Med: 15.83   Max: 16.32
Current: 13.93


During the past 13 years, the highest Gross Margin % of Al Eid Food Co was 16.32%. The lowest was 13.51%. And the median was 15.83%.

KUW:ALEID's Gross Margin % is not ranked
in the Retail - Defensive industry.
Industry Median: 24.17 vs KUW:ALEID: 13.93

Al Eid Food Co had a gross margin of 14.15% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Al Eid Food Co was -1.30% per year.


Al Eid Food Co  (KUW:ALEID) 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

Al Eid Food Co had a gross margin of 14.15% for the quarter that ended in Sep. 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.


Al Eid Food Co Gross Margin % Related Terms


Al Eid Food Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Al Eid Food Co'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.

Al Eid Food Co Gross Margin % Chart

Al Eid Food Co Annual Data
Trend Dec12 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.71 16.32 16.18 16.28 13.91

Al Eid Food Co Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.37 13.47 14.15 14.00 14.15

KUW:ALEID vs SYY, USFD, PFGC: Gross Margin % Comparison

For the Food Distribution subindustry, Al Eid Food Co'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.


Al Eid Food Co Gross Margin % vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Al Eid Food Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Al Eid Food Co's Gross Margin % falls into.


KUW:ALEID
75GF Score
Al Eid Food Co KUW:ALEID
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Al Eid Food Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Al Eid Food Co's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=9.7 / 69.729
=(Revenue - Cost of Goods Sold) / Revenue
=(69.729 - 60.032) / 69.729
=13.91 %

Al Eid Food Co's Gross Margin for the quarter that ended in Sep. 2025 is calculated as


Gross Margin % (Q: Sep. 2025 )=Gross Profit (Q: Sep. 2025 ) / Revenue (Q: Sep. 2025 )
=1.6 / 11.033
=(Revenue - Cost of Goods Sold) / Revenue
=(11.033 - 9.472) / 11.033
=14.15 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 14.15% mean?
Al Eid Food Co (KUW:ALEID) has a Gross Margin % of 14.15% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Al Eid Food Co and its competitors. This is 11% below median its historical median of 15.83. Over the past decade, Al Eid Food Co's Gross Margin % has ranged from 13.51 to 16.32.
Is Al Eid Food Co's Gross Margin % too high?
Al Eid Food Co's current Gross Margin % of 14.15% is 11% below median its 10-year median of 15.83. Over the past 10 years, this metric has ranged from a low of 13.51 to a high of 16.32. The Retail - Defensive industry median Gross Margin % is 24.17. Al Eid Food Co's value of 14.15% is 41.5% below this industry median. Overall, Al Eid Food Co has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Al Eid Food Co's Gross Margin % compare to SYY and USFD?
Al Eid Food Co's Gross Margin % of 14.15% can be compared against companies in the Retail - Defensive industry. The industry median Gross Margin % is 24.17. Al Eid Food Co's value of 14.15% is 41.5% below this benchmark. Historically, Al Eid Food Co's own Gross Margin % has ranged from 13.51 to 16.32 over the past decade. While the company's 10-year median is 15.83 vs. the industry median of 24.17, Al Eid Food Co 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 24.17, based on 304 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. Al Eid Food Co's current Gross Margin % of 14.15% is 41.5% 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 Al Eid Food Co and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Al Eid Food Co's current Gross Margin % is 14.15%, which is 11% below median its own 10-year median of 15.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Al Eid Food Co stock overvalued right now?
Al Eid Food Co (KUW:ALEID) has a current Gross Margin % of 14.15%. The stock's GF Value™ is KWD0.25, compared to a current price of KWD0.22 — trading 13.6% below its estimated fair value. The current Gross Margin % is 14.15%, which is 11% below median its 10-year median of 15.83 and 41.5% below the Retail - Defensive industry median of 24.17. Al Eid Food Co's overall GF Score™ is 75/100 with 6 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 Al Eid Food Co (KUW:ALEID), the current Gross Margin % is 14.15% as of Sep. 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 Al Eid Food Co (KUW:ALEID) Overvalued in 2026?

Based on GuruFocus' analysis, Al Eid Food Co stock appears to be undervalued. The current stock price of KWD0.22 is trading 13.6% below its estimated GF Value™ of KWD0.25.

Key valuation signals for KUW:ALEID:

  • Gross Margin %: 14.15% (11% below median its 10-year median of 15.83)
  • GF Value™: KWD0.25 vs. price of KWD0.22 (13.6% below fair value)
  • GF Score™: 75/100 with 6 warning signs
  • Industry Position: 41.5% below the Retail - Defensive median

No single metric tells the full story. See the KUW:ALEID stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Al Eid Food Co Business Description

Address Al Ardiya Industrial Area, P.O. Box 41081, Building 100, Block 2, Kuwait City, KWT, 85851
Al Eid Food Co is importing, distributes, packaging, and marketing food and consumer products. It specializes in food and beverage distribution in Kuwait. Its products include Alwaha, Seara, GoldAlex, Delicio, Rahma, and Sunlite. It also provides oils, pulses, spices, rice, seafood, nuts, and meat. Operating segments of the group are distributed over the State of Kuwait, and the Gulf co-operation council, and the majority of the revenue comes from the State of Kuwait.
75GF Score

Get the complete analysis for KUW:ALEID

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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Price
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