Natural Grocers by Vitamin Cottage (NYSE:NGVC) 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
Natural Grocers by Vitamin Cottage had a gross margin of 30.36% 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.
Natural Grocers by Vitamin Cottage Gross Margin % Related Terms
Natural Grocers by Vitamin Cottage 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.
Natural Grocers by Vitamin Cottage Gross Margin % Chart
NGVC vs VLGEA, YSWY, DNUT: Gross Margin % Comparison
For the Grocery Stores subindustry, Natural Grocers by Vitamin Cottage'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.
Natural Grocers by Vitamin Cottage Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Natural Grocers by Vitamin Cottage's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Natural Grocers by Vitamin Cottage'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.
Natural Grocers by Vitamin Cottage (NGVC) has a Gross Margin % of 30.36% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Natural Grocers by Vitamin Cottage and its competitors. This is near median its historical median of 27.83. Over the past decade, Natural Grocers by Vitamin Cottage's Gross Margin % has ranged from 26.42 to 29.90. According to the industry distribution chart, Natural Grocers by Vitamin Cottage ranks #98 out of 305 companies in the Retail - Defensive industry, placing it in the top 32.1%.
Is Natural Grocers by Vitamin Cottage's Gross Margin % too high?
Natural Grocers by Vitamin Cottage's current Gross Margin % of 30.36% is near median its 10-year median of 27.83. Over the past 10 years, this metric has ranged from a low of 26.42 to a high of 29.90. The Retail - Defensive industry median Gross Margin % is 24.14. Natural Grocers by Vitamin Cottage's value of 30.36% is 25.8% above this industry median. Based on the distribution chart, Natural Grocers by Vitamin Cottage ranks #98 out of 305 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Natural Grocers by Vitamin Cottage has a GF Scoreâ„¢ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Natural Grocers by Vitamin Cottage's Gross Margin % compare to VLGEA and YSWY?
According to the Retail - Defensive industry distribution chart, Natural Grocers by Vitamin Cottage ranks #98 out of 305 companies for Gross Margin %. This puts Natural Grocers by Vitamin Cottage in the upper half of its industry. The industry median Gross Margin % is 24.14. Natural Grocers by Vitamin Cottage's value of 30.36% is 25.8% above this benchmark. Historically, Natural Grocers by Vitamin Cottage's own Gross Margin % has ranged from 26.42 to 29.90 over the past decade. While the company's 10-year median is 27.83 vs. the industry median of 24.14, Natural Grocers by Vitamin Cottage 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 Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.14, based on 305 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. Natural Grocers by Vitamin Cottage's current Gross Margin % of 30.36% is 25.8% 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 Natural Grocers by Vitamin Cottage and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natural Grocers by Vitamin Cottage's current Gross Margin % is 30.36%, which is near median its own 10-year median of 27.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natural Grocers by Vitamin Cottage stock overvalued right now?
Based on GuruFocus' analysis, Natural Grocers by Vitamin Cottage (NGVC) is currently considered Modestly Overvalued. The stock's GF Value™ is $27.27, compared to a current price of $32.69 — trading 19.9% above its estimated fair value. The current Gross Margin % is 30.36%, which is near median its 10-year median of 27.83 and 25.8% above the Retail - Defensive industry median of 24.14. Natural Grocers by Vitamin Cottage's overall GF Score™ is 84/100 with 2 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 Natural Grocers by Vitamin Cottage (NGVC), the current Gross Margin % is 30.36% 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 Natural Grocers by Vitamin Cottage (NGVC) Overvalued in 2026?
Based on GuruFocus' analysis, Natural Grocers by Vitamin Cottage stock appears to be overvalued.
The current stock price of $32.69 is trading 19.9% above its estimated GF Value™ of $27.27.
GuruFocus considers Natural Grocers by Vitamin Cottage to be Modestly Overvalued.
Key valuation signals for NGVC:
Gross Margin %: 30.36% (near median its 10-year median of 27.83)
GF Value™: $27.27 vs. price of $32.69 (19.9% above fair value)
Industry Position: 25.8% above the Retail - Defensive median (#98 of 305)
No single metric tells the full story. See the NGVC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natural Grocers by Vitamin Cottage Business Description
Natural Grocers by Vitamin Cottage Inc operates natural and organic grocery and dietary supplement stores. It offers the following product categories: natural and organic food, dietary supplements, natural body care, household, pet care products, books, and handouts. The Company has a single reporting segment, natural and organic retail stores, through which business is conducted. The company generates the majority of its revenue from grocery products and dietary supplements, and the rest from other products.
84GF Score
Get the complete analysis for NGVC
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