East African BreweriesNAI:EABL -1.03%87 Gross Margin % is 42.80% as of Dec. 2025, which is 3% below its 10-year median of 44.10. GuruFocus rates NAI:EABL with a GF Score™ of 87/100 and a GF Value™ of KES320.00 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 204 Beverages - Alcoholic companies, East African Breweries ranks better than 50.98% on this metric.
NAI:EABL's Gross Margin % is ranked better than 50.98% of 204
companies
in the Beverages - Alcoholic industry
Industry Median: 42.325
vs NAI:EABL: 42.72
East African Breweries had a gross margin of 42.80% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for East African Breweries was -1.10% per year.
East African Breweries (NAI:EABL) 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
East African Breweries had a gross margin of 42.80% 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.
East African Breweries Gross Margin % Related Terms
East African Breweries Gross Margin % Historical Data
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The historical data trend for East African Breweries'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.
NAI:EABL vs BUD, STZ, TAP: Gross Margin % Comparison
For the Beverages - Brewers subindustry, East African Breweries'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.
East African Breweries Gross Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, East African Breweries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where East African Breweries'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.
East African Breweries (NAI:EABL) has a Gross Margin % of 42.80% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on East African Breweries and its competitors. This is near median its historical median of 44.10. Over the past decade, East African Breweries' Gross Margin % has ranged from 41.99 to 50.08. According to the industry distribution chart, East African Breweries ranks #100 out of 204 companies in the Beverages - Alcoholic industry, placing it in the top 49%.
Is East African Breweries' Gross Margin % too high?
East African Breweries' current Gross Margin % of 42.80% is near median its 10-year median of 44.10. Over the past 10 years, this metric has ranged from a low of 41.99 to a high of 50.08. The Beverages - Alcoholic industry median Gross Margin % is 42.33. East African Breweries' value of 42.80% is 1.1% above this industry median. Based on the distribution chart, East African Breweries ranks #100 out of 204 companies in the Beverages - Alcoholic industry, which is above the industry midpoint. Overall, East African Breweries has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does East African Breweries' Gross Margin % compare to BUD and STZ?
According to the Beverages - Alcoholic industry distribution chart, East African Breweries ranks #100 out of 204 companies for Gross Margin %. This puts East African Breweries in the upper half of its industry. The industry median Gross Margin % is 42.33. East African Breweries' value of 42.80% is 1.1% above this benchmark. Historically, East African Breweries' own Gross Margin % has ranged from 41.99 to 50.08 over the past decade. While the company's 10-year median is 44.10 vs. the industry median of 42.33, East African Breweries 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 Beverages - Alcoholic company?
The median Gross Margin % among Beverages - Alcoholic companies is 42.33, based on 204 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. East African Breweries's current Gross Margin % of 42.80% is 1.1% 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 East African Breweries and its competitors. For the Beverages - Alcoholic industry, the median Gross Margin % is 42.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. East African Breweries's current Gross Margin % is 42.80%, which is near median its own 10-year median of 44.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is East African Breweries stock overvalued right now?
Based on GuruFocus' analysis, East African Breweries (NAI:EABL) is currently considered Modestly Undervalued. The stock's GF Value™ is KES320.00, compared to a current price of KES264.75 — trading 17.3% below its estimated fair value. The current Gross Margin % is 42.80%, which is near median its 10-year median of 44.10 and 1.1% above the Beverages - Alcoholic industry median of 42.33. East African Breweries' overall GF Score™ is 87/100 with 4 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 East African Breweries (NAI:EABL), the current Gross Margin % is 42.80% 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 East African Breweries (NAI:EABL) Overvalued in 2026?
Based on GuruFocus' analysis, East African Breweries stock appears to be undervalued.
The current stock price of KES264.75 is trading 17.3% below its estimated GF Value™ of KES320.00.
GuruFocus considers East African Breweries to be Modestly Undervalued.
Key valuation signals for NAI:EABL:
Gross Margin %: 42.80% (near median its 10-year median of 44.10)
GF Value™: KES320.00 vs. price of KES264.75 (17.3% below fair value)
Industry Position: 1.1% above the Beverages - Alcoholic median (#100 of 204)
No single metric tells the full story. See the NAI:EABL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
East African Breweries PLC is a branded alcohol beverage company. The firm and its subsidiaries are involved in the marketing, production, and distribution of a collection of brands that range from beer, spirits, and adult non-alcoholic drinks. The company has invested in breweries, distilleries, support industries, and a distribution network across the region. The firm derives its revenue mainly from brewing, marketing, and selling of drinks, malt, and barley. Its geographical segments include Kenya, Uganda, and Tanzania, of which the majority of the revenue is generated from Kenya.
87GF Score
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