Grupo Palacio de HierroB de CV (MEX:GPH1) 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
Grupo Palacio de HierroB de CV had a gross margin of 33.82% for the quarter that ended in Mar. 2026 => 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.
Grupo Palacio de HierroB de CV Gross Margin % Related Terms
Grupo Palacio de HierroB de CV 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.
Grupo Palacio de HierroB de CV Gross Margin % Chart
For the Department Stores subindustry, Grupo Palacio de HierroB de CV'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.
Grupo Palacio de HierroB de CV Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Grupo Palacio de HierroB de CV's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Grupo Palacio de HierroB de CV'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.
Grupo Palacio de HierroB de CV (MEX:GPH1) has a Gross Margin % of 33.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Grupo Palacio de HierroB de CV and its competitors. This is 20% above median its historical median of 28.30. Over the past decade, Grupo Palacio de HierroB de CV's Gross Margin % has ranged from 26.14 to 33.91.
Is Grupo Palacio de HierroB de CV's Gross Margin % too high?
Grupo Palacio de HierroB de CV's current Gross Margin % of 33.82% is 20% above median its 10-year median of 28.30. Over the past 10 years, this metric has ranged from a low of 26.14 to a high of 33.91. The Retail - Cyclical industry median Gross Margin % is 36.37. Grupo Palacio de HierroB de CV's value of 33.82% is 7% below this industry median. Overall, Grupo Palacio de HierroB de CV has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Grupo Palacio de HierroB de CV's Gross Margin % compare to DDS and M?
Grupo Palacio de HierroB de CV's Gross Margin % of 33.82% can be compared against companies in the Retail - Cyclical industry. The industry median Gross Margin % is 36.37. Grupo Palacio de HierroB de CV's value of 33.82% is 7% below this benchmark. Historically, Grupo Palacio de HierroB de CV's own Gross Margin % has ranged from 26.14 to 33.91 over the past decade. While the company's 10-year median is 28.30 vs. the industry median of 36.37, Grupo Palacio de HierroB de CV 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 - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.37, based on 1,113 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. Grupo Palacio de HierroB de CV's current Gross Margin % of 33.82% is 7% 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 Grupo Palacio de HierroB de CV and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grupo Palacio de HierroB de CV's current Gross Margin % is 33.82%, which is 20% above median its own 10-year median of 28.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grupo Palacio de HierroB de CV stock overvalued right now?
Grupo Palacio de HierroB de CV (MEX:GPH1) has a current Gross Margin % of 33.82%. The stock's GF Value™ is MXN64.42, compared to a current price of MXN42.00 — trading 34.8% below its estimated fair value. The current Gross Margin % is 33.82%, which is 20% above median its 10-year median of 28.30 and 7% below the Retail - Cyclical industry median of 36.37. Grupo Palacio de HierroB de CV's overall GF Score™ is 12/100 with 3 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 Grupo Palacio de HierroB de CV (MEX:GPH1), the current Gross Margin % is 33.82% 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 Grupo Palacio de HierroB de CV (MEX:GPH1) Overvalued in 2026?
Based on GuruFocus' analysis, Grupo Palacio de HierroB de CV stock appears to be undervalued.
The current stock price of MXN42.00 is trading 34.8% below its estimated GF Value™ of MXN64.42.
Key valuation signals for MEX:GPH1:
Gross Margin %: 33.82% (20% above median its 10-year median of 28.30)
GF Value™: MXN64.42 vs. price of MXN42.00 (34.8% below fair value)
Industry Position: 7% below the Retail - Cyclical median
No single metric tells the full story. See the MEX:GPH1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grupo Palacio de HierroB de CV Business Description
Grupo Palacio de Hierro SAB de CV is a Mexico-based holding company primarily engaged in the retail sector. The company's main revenue generating activities are the operation of a network of department stores, outlets, home furnishing and accessories stores, Boutiques Palacio, boutiques, independent restaurants, bistros, restaurant-stores, travel agencies and beauty clinics as well as restaurants and travel agencies integrated into some of the stores. The company is also involved in the real estate, through the management and operation of shopping centers located in Coyoacan, Polanco, Puebla, and Monterrey. In addition, it offers sales financing services and consumer credits to its clients.
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