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
Treehouse Foods had a gross margin of 18.79% for the quarter that ended in Sep. 2025 => No sustainable 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.
Treehouse Foods Gross Margin % Related Terms
Treehouse Foods Gross Margin % Historical Data
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The historical data trend for Treehouse Foods'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:THS vs JBSS, OFRM, SMPL: Gross Margin % Comparison
For the Packaged Foods subindustry, Treehouse Foods'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.
Treehouse Foods Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Treehouse Foods's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Treehouse Foods'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.
Treehouse Foods (MEX:THS) has a Gross Margin % of 18.79% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Treehouse Foods and its competitors. This is near median its historical median of 18.34. Over the past decade, Treehouse Foods' Gross Margin % has ranged from 15.84 to 20.16.
Is Treehouse Foods' Gross Margin % too high?
Treehouse Foods' current Gross Margin % of 18.79% is near median its 10-year median of 18.34. Over the past 10 years, this metric has ranged from a low of 15.84 to a high of 20.16. The Consumer Packaged Goods industry median Gross Margin % is 26.36. Treehouse Foods' value of 18.79% is 28.7% below this industry median. Overall, Treehouse Foods has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does Treehouse Foods' Gross Margin % compare to JBSS and OFRM?
Treehouse Foods' Gross Margin % of 18.79% can be compared against companies in the Consumer Packaged Goods industry. The industry median Gross Margin % is 26.36. Treehouse Foods' value of 18.79% is 28.7% below this benchmark. Historically, Treehouse Foods' own Gross Margin % has ranged from 15.84 to 20.16 over the past decade. While the company's 10-year median is 18.34 vs. the industry median of 26.36, Treehouse Foods 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.36, based on 1,898 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. Treehouse Foods's current Gross Margin % of 18.79% is 28.7% 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 Treehouse Foods and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Treehouse Foods's current Gross Margin % is 18.79%, which is near median its own 10-year median of 18.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Treehouse Foods stock overvalued right now?
Treehouse Foods (MEX:THS) has a current Gross Margin % of 18.79%. The stock's GF Value™ is MXN1,214.01, compared to a current price of MXN703.30 — trading 42.1% below its estimated fair value. The current Gross Margin % is 18.79%, which is near median its 10-year median of 18.34 and 28.7% below the Consumer Packaged Goods industry median of 26.36. Treehouse Foods' overall GF Score™ is 63/100 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 Treehouse Foods (MEX:THS), the current Gross Margin % is 18.79% as of Sep. 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 Treehouse Foods (MEX:THS) Overvalued in 2026?
Based on GuruFocus' analysis, Treehouse Foods stock appears to be undervalued.
The current stock price of MXN703.30 is trading 42.1% below its estimated GF Value™ of MXN1,214.01.
Key valuation signals for MEX:THS:
Gross Margin %: 18.79% (near median its 10-year median of 18.34)
GF Value™: MXN1,214.01 vs. price of MXN703.30 (42.1% below fair value)
Industry Position: 28.7% below the Consumer Packaged Goods median
No single metric tells the full story. See the MEX:THS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TreeHouse Foods is the largest pure-play private-label manufacturer in the US. Much larger in the past following the 2016 acquisition of Ralcorp, Conagra's former private-label business, the company has since divested several businesses to focus on high-growth categories. At present, the company produces and sells snacks (crackers, pretzels, cookies, and so on), beverages (such as nondairy creamer, coffee, tea, and broth), and a select number of grocery products (pickles, refrigerated dough, hot cereal, cheese, and pudding). Its most important sales channel is through retail grocery stores that sell its products under their own brands, with co-manufacturing and food away from home as much smaller channels of distribution for its fare.
63GF Score
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