Fevertree DrinksLSE:FEVR +0.49%83 Gross Margin % is 33.20% as of Dec. 2025, which is 25% below its 10-year median of 44.11. GuruFocus rates LSE:FEVR with a GF Score™ of 83/100 and a GF Value™ of £9.26 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 115 Beverages - Non-Alcoholic companies, Fevertree Drinks ranks worse than 64.35% on this metric.
Fevertree Drinks PLC gross margin has been in long-term decline. The average rate of decline per year is -4.9%.
The historical rank and industry rank for Fevertree Drinks's Gross Margin % or its related term are showing as below:
LSE:FEVR'
s Gross Margin % Range Over the Past 10 Years
Min: 32.11 Med: 44.11 Max: 55.19
Current: 35.23
During the past 13 years, the highestGross Margin % of Fevertree Drinks was 55.19%. The lowest was 32.11%. And the median was 44.11%.
LSE:FEVR's Gross Margin % is ranked worse than 64.35% of 115
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 38.43
vs LSE:FEVR: 35.23
Fevertree Drinks had a gross margin of 33.20% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Fevertree Drinks was -4.90% per year.
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
Fevertree Drinks had a gross margin of 33.20% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
Fevertree Drinks Gross Margin % Related Terms
Fevertree Drinks Gross Margin % Historical Data
* Premium members only.
The historical data trend for Fevertree Drinks'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.
LSE:FEVR vs KO, PEP, MNST: Gross Margin % Comparison
For the Beverages - Non-Alcoholic subindustry, Fevertree Drinks'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.
Fevertree Drinks Gross Margin % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Fevertree Drinks's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fevertree Drinks'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.
Fevertree Drinks (LSE:FEVR) has a Gross Margin % of 33.20% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Fevertree Drinks and its competitors. This is 25% below median its historical median of 44.11. Over the past decade, Fevertree Drinks' Gross Margin % has ranged from 32.11 to 55.19. According to the industry distribution chart, Fevertree Drinks ranks #74 out of 115 companies in the Beverages - Non-Alcoholic industry, placing it in the top 64.3%.
Is Fevertree Drinks' Gross Margin % too high?
Fevertree Drinks' current Gross Margin % of 33.20% is 25% below median its 10-year median of 44.11. Over the past 10 years, this metric has ranged from a low of 32.11 to a high of 55.19. The Beverages - Non-Alcoholic industry median Gross Margin % is 38.43. Fevertree Drinks' value of 33.20% is 13.6% below this industry median. Based on the distribution chart, Fevertree Drinks ranks #74 out of 115 companies in the Beverages - Non-Alcoholic industry, which is below the industry midpoint. Overall, Fevertree Drinks has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fevertree Drinks' Gross Margin % compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, Fevertree Drinks ranks #74 out of 115 companies for Gross Margin %. This places Fevertree Drinks in the lower half of its industry. The industry median Gross Margin % is 38.43. Fevertree Drinks' value of 33.20% is 13.6% below this benchmark. Historically, Fevertree Drinks' own Gross Margin % has ranged from 32.11 to 55.19 over the past decade. While the company's 10-year median is 44.11 vs. the industry median of 38.43, Fevertree Drinks 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 Beverages - Non-Alcoholic company?
The median Gross Margin % among Beverages - Non-Alcoholic companies is 38.43, based on 115 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. Fevertree Drinks's current Gross Margin % of 33.20% is 13.6% 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 Fevertree Drinks and its competitors. For the Beverages - Non-Alcoholic industry, the median Gross Margin % is 38.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fevertree Drinks's current Gross Margin % is 33.20%, which is 25% below median its own 10-year median of 44.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fevertree Drinks stock overvalued right now?
Based on GuruFocus' analysis, Fevertree Drinks (LSE:FEVR) is currently considered Modestly Undervalued. The stock's GF Value™ is £9.26, compared to a current price of £8.26 — trading 10.9% below its estimated fair value. The current Gross Margin % is 33.20%, which is 25% below median its 10-year median of 44.11 and 13.6% below the Beverages - Non-Alcoholic industry median of 38.43. Fevertree Drinks' overall GF Score™ is 83/100 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 Fevertree Drinks (LSE:FEVR), the current Gross Margin % is 33.20% 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 Fevertree Drinks (LSE:FEVR) Overvalued in 2026?
Based on GuruFocus' analysis, Fevertree Drinks stock appears to be undervalued.
The current stock price of £8.26 is trading 10.9% below its estimated GF Value™ of £9.26.
GuruFocus considers Fevertree Drinks to be Modestly Undervalued.
Key valuation signals for LSE:FEVR:
Gross Margin %: 33.20% (25% below median its 10-year median of 44.11)
GF Value™: £9.26 vs. price of £8.26 (10.9% below fair value)
Industry Position: 13.6% below the Beverages - Non-Alcoholic median (#74 of 115)
No single metric tells the full story. See the LSE:FEVR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fevertree Drinks PLC is a UK based holding and investment company. The company is engaged in the business activity of developing and marketing premium mixer drinks. Its product portfolio includes Indian tonic water, Mediterranean tonic water, Elderflower tonic water, Aromatic tonic water, Clementine tonic water, Lemon tonic water, Ginger beer, Ginger ale, Smoky ginger ale, Spiced orange ginger ale, Madagascan cola, Sicilian lemonade, Lemonade, Premium Soda Water and Mediterranean Orange. Geographically, company is divided into two segments US segment representing profits from USA cities and Rest of Group segment which represents profits directly attributable to UK, European and RoW regions of which majority of the revenue is from the United Kingdom.
83GF Score
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