Covestro AGMIL:11COV 38 Gross Margin % is 7.27% as of Dec. 2025, which is 68% below its 10-year median of 22.77. GuruFocus rates MIL:11COV with a GF Score™ of 38/100 and a GF Value™ of €49.79 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,556 Chemicals companies, Covestro AG ranks worse than 75.71% on this metric.
Covestro AG gross margin has been in long-term decline. The average rate of decline per year is -12.1%.
The historical rank and industry rank for Covestro AG's Gross Margin % or its related term are showing as below:
MIL:11COV'
s Gross Margin % Range Over the Past 10 Years
Min: 13.27 Med: 22.77 Max: 34.16
Current: 13.27
During the past 13 years, the highestGross Margin % of Covestro AG was 34.16%. The lowest was 13.27%. And the median was 22.77%.
MIL:11COV's Gross Margin % is ranked worse than 75.71% of 1556
companies
in the Chemicals industry
Industry Median: 23.465
vs MIL:11COV: 13.27
Covestro AG had a gross margin of 7.27% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Covestro AG was -12.10% per year.
Covestro AG (MIL:11COV) 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
Covestro AG had a gross margin of 7.27% for the quarter that ended in Dec. 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.
Covestro AG Gross Margin % Related Terms
Covestro AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for Covestro AG'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.
MIL:11COV vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Covestro AG'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.
Covestro AG Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Covestro AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Covestro AG'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.
Covestro AG (MIL:11COV) has a Gross Margin % of 7.27% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Covestro AG and its competitors. This is 68% below median its historical median of 22.77. Over the past decade, Covestro AG's Gross Margin % has ranged from 13.27 to 34.16. According to the industry distribution chart, Covestro AG ranks #1178 out of 1556 companies in the Chemicals industry, placing it in the top 75.7%.
Is Covestro AG's Gross Margin % too high?
Covestro AG's current Gross Margin % of 7.27% is 68% below median its 10-year median of 22.77. Over the past 10 years, this metric has ranged from a low of 13.27 to a high of 34.16. The Chemicals industry median Gross Margin % is 23.47. Covestro AG's value of 7.27% is 69% below this industry median. Based on the distribution chart, Covestro AG ranks #1178 out of 1556 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Covestro AG has a GF Score™ of 38/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Covestro AG's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Covestro AG ranks #1178 out of 1556 companies for Gross Margin %. This places Covestro AG in the lower half of its industry. The industry median Gross Margin % is 23.47. Covestro AG's value of 7.27% is 69% below this benchmark. Historically, Covestro AG's own Gross Margin % has ranged from 13.27 to 34.16 over the past decade. While the company's 10-year median is 22.77 vs. the industry median of 23.47, Covestro AG 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.47, based on 1,556 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. Covestro AG's current Gross Margin % of 7.27% is 69% 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 Covestro AG and its competitors. For the Chemicals industry, the median Gross Margin % is 23.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Covestro AG's current Gross Margin % is 7.27%, which is 68% below median its own 10-year median of 22.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Covestro AG stock overvalued right now?
Based on GuruFocus' analysis, Covestro AG (MIL:11COV) is currently considered Modestly Overvalued. The stock's GF Value™ is €49.79, compared to a current price of €56.20 — trading 12.9% above its estimated fair value. The current Gross Margin % is 7.27%, which is 68% below median its 10-year median of 22.77 and 69% below the Chemicals industry median of 23.47. Covestro AG's overall GF Score™ is 38/100 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 Covestro AG (MIL:11COV), the current Gross Margin % is 7.27% 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 Covestro AG (MIL:11COV) Overvalued in 2026?
Based on GuruFocus' analysis, Covestro AG stock appears to be overvalued.
The current stock price of €56.20 is trading 12.9% above its estimated GF Value™ of €49.79.
GuruFocus considers Covestro AG to be Modestly Overvalued.
Key valuation signals for MIL:11COV:
Gross Margin %: 7.27% (68% below median its 10-year median of 22.77)
GF Value™: €49.79 vs. price of €56.20 (12.9% above fair value)
Industry Position: 69% below the Chemicals median (#1178 of 1556)
No single metric tells the full story. See the MIL:11COV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Covestro AG is a player in the polymer materials field. The firm is engaged in polyurethanes and polycarbonates products. It also has a sizable speciality chemicals business that is focused on coatings and adhesives. Demand for the company's products is driven by cyclical end markets, such as automotive, construction, and furniture. The company's segment includes Performance Materials and Solutions & Specialties. The company generates the majority of its revenue from the Solutions & Specialties segment. The Solutions & Specialties segment includes six business entities: Engineering Plastics; Coatings & Adhesives; Tailored Urethanes; Thermoplastic Polyurethanes; Specialty Films; and Elastomers.
38GF Score
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