Headlam GroupLSE:HEAD +8.33%59 Gross Margin % is 26.93% as of Dec. 2025, which is 15% below its 10-year median of 31.57. GuruFocus rates LSE:HEAD with a GF Score™ of 59/100 and a GF Value™ of £1.23 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 415 Furnishings, Fixtures & Appliances companies, Headlam Group ranks worse than 51.57% on this metric.
Headlam Group PLC gross margin has been in long-term decline. The average rate of decline per year is -2.6%.
The historical rank and industry rank for Headlam Group's Gross Margin % or its related term are showing as below:
LSE:HEAD'
s Gross Margin % Range Over the Past 10 Years
Min: 27.66 Med: 31.57 Max: 33.08
Current: 28.82
During the past 13 years, the highestGross Margin % of Headlam Group was 33.08%. The lowest was 27.66%. And the median was 31.57%.
LSE:HEAD's Gross Margin % is ranked worse than 51.57% of 415
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 29.11
vs LSE:HEAD: 28.82
Headlam Group had a gross margin of 26.93% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Headlam Group was -2.60% per year.
Headlam Group (LSE:HEAD) 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
Headlam Group had a gross margin of 26.93% 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.
Headlam Group Gross Margin % Related Terms
Headlam Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Headlam Group'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:HEAD vs SN, SGI, MHK: Gross Margin % Comparison
For the Furnishings, Fixtures & Appliances subindustry, Headlam Group'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.
Headlam Group Gross Margin % vs Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Headlam Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Headlam Group'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.
Headlam Group (LSE:HEAD) has a Gross Margin % of 26.93% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Headlam Group and its competitors. This is 15% below median its historical median of 31.57. Over the past decade, Headlam Group's Gross Margin % has ranged from 27.66 to 33.08. According to the industry distribution chart, Headlam Group ranks #214 out of 415 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 51.6%.
Is Headlam Group's Gross Margin % too high?
Headlam Group's current Gross Margin % of 26.93% is 15% below median its 10-year median of 31.57. Over the past 10 years, this metric has ranged from a low of 27.66 to a high of 33.08. The Furnishings, Fixtures & Appliances industry median Gross Margin % is 29.11. Headlam Group's value of 26.93% is 7.5% below this industry median. Based on the distribution chart, Headlam Group ranks #214 out of 415 companies in the Furnishings, Fixtures & Appliances industry, which is below the industry midpoint. Overall, Headlam Group has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Headlam Group's Gross Margin % compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Headlam Group ranks #214 out of 415 companies for Gross Margin %. This places Headlam Group in the lower half of its industry. The industry median Gross Margin % is 29.11. Headlam Group's value of 26.93% is 7.5% below this benchmark. Historically, Headlam Group's own Gross Margin % has ranged from 27.66 to 33.08 over the past decade. While the company's 10-year median is 31.57 vs. the industry median of 29.11, Headlam Group 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 Furnishings, Fixtures & Appliances company?
The median Gross Margin % among Furnishings, Fixtures & Appliances companies is 29.11, based on 415 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. Headlam Group's current Gross Margin % of 26.93% is 7.5% 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 Headlam Group and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Gross Margin % is 29.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Headlam Group's current Gross Margin % is 26.93%, which is 15% below median its own 10-year median of 31.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Headlam Group stock overvalued right now?
Based on GuruFocus' analysis, Headlam Group (LSE:HEAD) is currently considered Possible Value Trap. The stock's GF Value™ is £1.23, compared to a current price of £0.21 — trading 83.1% below its estimated fair value. The current Gross Margin % is 26.93%, which is 15% below median its 10-year median of 31.57 and 7.5% below the Furnishings, Fixtures & Appliances industry median of 29.11. Headlam Group's overall GF Score™ is 59/100 with 7 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 Headlam Group (LSE:HEAD), the current Gross Margin % is 26.93% 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 Headlam Group (LSE:HEAD) Overvalued in 2026?
Based on GuruFocus' analysis, Headlam Group stock appears to be undervalued.
The current stock price of £0.21 is trading 83.1% below its estimated GF Value™ of £1.23.
GuruFocus considers Headlam Group to be Possible Value Trap.
Key valuation signals for LSE:HEAD:
Gross Margin %: 26.93% (15% below median its 10-year median of 31.57)
GF Value™: £1.23 vs. price of £0.21 (83.1% below fair value)
Industry Position: 7.5% below the Furnishings, Fixtures & Appliances median (#214 of 415)
No single metric tells the full story. See the LSE:HEAD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Headlam Group PLC trades on floor covering products in the United Kingdom market. It operates its business across the UK and in Continental Europe also providing next-day delivery service for its products. The company to be able to offer its services has developed an independent operating structure that includes over 50 different businesses across the UK and a few more in continental Europe. Every segment represents an individual trading operation, and each operation is wholly aligned with the sales, marketing, supply, and distribution of floor-covering products.
59GF Score
Get the complete analysis for LSE:HEAD
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:HEAD has been successfully added to your 
