Fortune Brands InnovationsLTS:0IRN -3.60%72 Gross Margin % is 43.08% as of Mar. 2026, which is 6% above its 10-year median of 40.63. GuruFocus rates LTS:0IRN with a GF Score™ of 72/100 and a GF Value™ of $65.81 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,718 Construction companies, Fortune Brands Innovations ranks better than 85.97% 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
Fortune Brands Innovations had a gross margin of 43.08% 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.
Fortune Brands Innovations Gross Margin % Related Terms
Fortune Brands Innovations Gross Margin % Historical Data
* 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.
LTS:0IRN vs LPX, TREX, GFF: Gross Margin % Comparison
For the Building Products & Equipment subindustry, Fortune Brands Innovations'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.
Fortune Brands Innovations Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Fortune Brands Innovations's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fortune Brands Innovations'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.
Fortune Brands Innovations (LTS:0IRN) has a Gross Margin % of 43.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Fortune Brands Innovations and its competitors. This is near median its historical median of 40.63. Over the past decade, Fortune Brands Innovations' Gross Margin % has ranged from 35.60 to 44.83. According to the industry distribution chart, Fortune Brands Innovations ranks #241 out of 1718 companies in the Construction industry, placing it in the top 14%.
Is Fortune Brands Innovations' Gross Margin % too high?
Fortune Brands Innovations' current Gross Margin % of 43.08% is near median its 10-year median of 40.63. Over the past 10 years, this metric has ranged from a low of 35.60 to a high of 44.83. The Construction industry median Gross Margin % is 20.79. Fortune Brands Innovations' value of 43.08% is 107.3% above this industry median. Based on the distribution chart, Fortune Brands Innovations ranks #241 out of 1718 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Fortune Brands Innovations has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fortune Brands Innovations' Gross Margin % compare to LPX and TREX?
According to the Construction industry distribution chart, Fortune Brands Innovations ranks #241 out of 1718 companies for Gross Margin %. This places Fortune Brands Innovations in the top 14% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.79. Fortune Brands Innovations' value of 43.08% is 107.3% above this benchmark. Historically, Fortune Brands Innovations' own Gross Margin % has ranged from 35.60 to 44.83 over the past decade. While the company's 10-year median is 40.63 vs. the industry median of 20.79, Fortune Brands Innovations 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 Construction company?
The median Gross Margin % among Construction companies is 20.79, based on 1,718 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. Fortune Brands Innovations's current Gross Margin % of 43.08% is 107.3% 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 Fortune Brands Innovations and its competitors. For the Construction industry, the median Gross Margin % is 20.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fortune Brands Innovations's current Gross Margin % is 43.08%, which is near median its own 10-year median of 40.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fortune Brands Innovations stock overvalued right now?
Based on GuruFocus' analysis, Fortune Brands Innovations (LTS:0IRN) is currently considered Modestly Undervalued. The stock's GF Value™ is $65.81, compared to a current price of $53.09 — trading 19.3% below its estimated fair value. The current Gross Margin % is 43.08%, which is near median its 10-year median of 40.63 and 107.3% above the Construction industry median of 20.79. Fortune Brands Innovations' overall GF Score™ is 72/100 with 5 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 Fortune Brands Innovations (LTS:0IRN), the current Gross Margin % is 43.08% 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 Fortune Brands Innovations (LTS:0IRN) Overvalued in 2026?
Based on GuruFocus' analysis, Fortune Brands Innovations stock appears to be undervalued.
The current stock price of $53.09 is trading 19.3% below its estimated GF Value™ of $65.81.
GuruFocus considers Fortune Brands Innovations to be Modestly Undervalued.
Key valuation signals for LTS:0IRN:
Gross Margin %: 43.08% (near median its 10-year median of 40.63)
GF Value™: $65.81 vs. price of $53.09 (19.3% below fair value)
Industry Position: 107.3% above the Construction median (#241 of 1718)
No single metric tells the full story. See the LTS:0IRN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fortune Brands is a US-based homebuilding products company that sells building-related products serving R&R and new construction markets. The company operates in three segments: water, outdoors, and security. Water innovation, including plumbing fixtures and faucets, accounts for around 55% of total sales and features brands such as Moen, House of Rohl, and Aqualisa. The outdoors segment includes decking, railing, and doors and makes up 30% of total sales, featuring brands such as Larson, Fiberon, and Therma-Tru. The security segment, which includes smart residential padlocks, accounts for the remaining 15% of sales and features brands such as MasterLock, SentrySafe, Yale, and AmericanLock.
72GF Score
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