NestleMEX:NESNN 73 Gross Margin % is 44.84% as of Dec. 2025, which is 8% below its 10-year median of 48.64. GuruFocus rates MEX:NESNN with a GF Score™ of 73/100 and a GF Value™ of MXN1,950.54. The stock has 7 warning signs investors should review. Among 1,902 Consumer Packaged Goods companies, Nestle ranks better than 81.34% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Nestle's Gross Profit for the
six
months ended in Dec. 2025 was MXN460,706 Mil. Nestle's Revenue for the
six
months ended in Dec. 2025 was MXN1,027,493 Mil. Therefore, Nestle's Gross Margin % for the quarter that ended in Dec. 2025 was 44.84%.
Warning Sign:
Nestle SA gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Nestle's Gross Margin % or its related term are showing as below:
MEX:NESNN'
s Gross Margin % Range Over the Past 10 Years
Min: 45.41 Med: 48.64 Max: 50.77
Current: 45.83
During the past 13 years, the highestGross Margin % of Nestle was 50.77%. The lowest was 45.41%. And the median was 48.64%.
MEX:NESNN's Gross Margin % is ranked better than 81.34% of 1902
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs MEX:NESNN: 45.83
Nestle had a gross margin of 44.84% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nestle was -1.20% per year.
Nestle (MEX:NESNN) 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
Nestle had a gross margin of 44.84% for the quarter that ended in Dec. 2025 => 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.
Nestle Gross Margin % Related Terms
Nestle Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nestle'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.
MEX:NESNN vs KHC, GIS, JBS: Gross Margin % Comparison
For the Packaged Foods subindustry, Nestle'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.
Nestle Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nestle'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.
Nestle (MEX:NESNN) has a Gross Margin % of 44.84% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Nestle and its competitors. This is near median its historical median of 48.64. Over the past decade, Nestle's Gross Margin % has ranged from 45.41 to 50.77. According to the industry distribution chart, Nestle ranks #355 out of 1902 companies in the Consumer Packaged Goods industry, placing it in the top 18.7%.
Is Nestle's Gross Margin % too high?
Nestle's current Gross Margin % of 44.84% is near median its 10-year median of 48.64. Over the past 10 years, this metric has ranged from a low of 45.41 to a high of 50.77. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Nestle's value of 44.84% is 70% above this industry median. Based on the distribution chart, Nestle ranks #355 out of 1902 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Nestle has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Nestle's Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle ranks #355 out of 1902 companies for Gross Margin %. This places Nestle in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.37. Nestle's value of 44.84% is 70% above this benchmark. Historically, Nestle's own Gross Margin % has ranged from 45.41 to 50.77 over the past decade. While the company's 10-year median is 48.64 vs. the industry median of 26.37, Nestle 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,902 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. Nestle's current Gross Margin % of 44.84% is 70% 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 Nestle and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle's current Gross Margin % is 44.84%, which is near median its own 10-year median of 48.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle stock overvalued right now?
Nestle (MEX:NESNN) has a current Gross Margin % of 44.84%. The stock's GF Value™ is MXN1,950.54, compared to a current price of MXN1,734.16 — trading 11.1% below its estimated fair value. The current Gross Margin % is 44.84%, which is near median its 10-year median of 48.64 and 70% above the Consumer Packaged Goods industry median of 26.37. Nestle's overall GF Score™ is 73/100 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 Nestle (MEX:NESNN), the current Gross Margin % is 44.84% 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 Nestle (MEX:NESNN) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle stock appears to be undervalued.
The current stock price of MXN1,734.16 is trading 11.1% below its estimated GF Value™ of MXN1,950.54.
Key valuation signals for MEX:NESNN:
Gross Margin %: 44.84% (near median its 10-year median of 48.64)
GF Value™: MXN1,950.54 vs. price of MXN1,734.16 (11.1% below fair value)
Industry Position: 70% above the Consumer Packaged Goods median (#355 of 1902)
No single metric tells the full story. See the MEX:NESNN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
With a 150-year-plus history, Nestle is the largest food and beverage manufacturer in the world by sales, generating roughly CHF 90 billion in annual revenue. Its diverse product portfolio includes brands such as Nescafe, Maggi, Nespresso, and Purina. The company employs 270,000 people around the world and has a vast portfolio of global products, with more than 30 brands each achieving more than CHF 1 billion in sales annually and a geographic presence that spans 185 countries.
73GF Score
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