Honeywell Flour MillsNSA:HFM 69 Gross Margin % is 8.63% as of Mar. 2025, which is 42% below its 10-year median of 14.86. GuruFocus rates NSA:HFM with a GF Score™ of 69/100 and a GF Value™ of ₦10.20 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,901 Consumer Packaged Goods companies, Honeywell Flour Mills ranks worse than 88.43% on this metric.
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
Honeywell Flour Mills had a gross margin of 8.63% for the quarter that ended in Mar. 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.
Honeywell Flour Mills Gross Margin % Related Terms
Honeywell Flour Mills Gross Margin % Historical Data
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The historical data trend for Honeywell Flour Mills'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.
NSA:HFM vs KHC, GIS, JBS: Gross Margin % Comparison
For the Packaged Foods subindustry, Honeywell Flour Mills'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.
Honeywell Flour Mills Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Honeywell Flour Mills's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Honeywell Flour Mills'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.
Honeywell Flour Mills (NSA:HFM) has a Gross Margin % of 8.63% as of Mar. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Honeywell Flour Mills and its competitors. This is 42% below median its historical median of 14.86. Over the past decade, Honeywell Flour Mills' Gross Margin % has ranged from 6.47 to 23.88. According to the industry distribution chart, Honeywell Flour Mills ranks #1681 out of 1901 companies in the Consumer Packaged Goods industry, placing it in the top 88.4%.
Is Honeywell Flour Mills' Gross Margin % too high?
Honeywell Flour Mills' current Gross Margin % of 8.63% is 42% below median its 10-year median of 14.86. Over the past 10 years, this metric has ranged from a low of 6.47 to a high of 23.88. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Honeywell Flour Mills' value of 8.63% is 67.3% below this industry median. Based on the distribution chart, Honeywell Flour Mills ranks #1681 out of 1901 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Honeywell Flour Mills has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Honeywell Flour Mills' Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Honeywell Flour Mills ranks #1681 out of 1901 companies for Gross Margin %. This places Honeywell Flour Mills in the lower half of its industry. The industry median Gross Margin % is 26.37. Honeywell Flour Mills' value of 8.63% is 67.3% below this benchmark. Historically, Honeywell Flour Mills' own Gross Margin % has ranged from 6.47 to 23.88 over the past decade. While the company's 10-year median is 14.86 vs. the industry median of 26.37, Honeywell Flour Mills 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 26.37, based on 1,901 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. Honeywell Flour Mills's current Gross Margin % of 8.63% is 67.3% 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 Honeywell Flour Mills 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. Honeywell Flour Mills's current Gross Margin % is 8.63%, which is 42% below median its own 10-year median of 14.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honeywell Flour Mills stock overvalued right now?
Based on GuruFocus' analysis, Honeywell Flour Mills (NSA:HFM) is currently considered Significantly Overvalued. The stock's GF Value™ is ₦10.20, compared to a current price of ₦15.85 — trading 55.4% above its estimated fair value. The current Gross Margin % is 8.63%, which is 42% below median its 10-year median of 14.86 and 67.3% below the Consumer Packaged Goods industry median of 26.37. Honeywell Flour Mills' overall GF Score™ is 69/100 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 Honeywell Flour Mills (NSA:HFM), the current Gross Margin % is 8.63% as of Mar. 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 Honeywell Flour Mills (NSA:HFM) Overvalued in 2026?
Based on GuruFocus' analysis, Honeywell Flour Mills stock appears to be overvalued.
The current stock price of ₦15.85 is trading 55.4% above its estimated GF Value™ of ₦10.20.
GuruFocus considers Honeywell Flour Mills to be Significantly Overvalued.
Key valuation signals for NSA:HFM:
Gross Margin %: 8.63% (42% below median its 10-year median of 14.86)
GF Value™: ₦10.20 vs. price of ₦15.85 (55.4% above fair value)
Industry Position: 67.3% below the Consumer Packaged Goods median (#1681 of 1901)
No single metric tells the full story. See the NSA:HFM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honeywell Flour Mills PLC is a Nigerian food manufacturing company specializing in the production and marketing of wheat-based products such as flour, semolina, whole wheat meal, noodles, and pasta. It distributes products across Nigeria through an extensive logistics and retail network. Honeywell Flour Mills is ISO-certified and part of the Flour Mills of Nigeria Plc group, benefiting from group synergies in a closely regulated sector. The Company's business reportable segments are identified by the factories located at Apapa, and Sagamu. The Apapa segment manufactures Flour, Semo and Wheat meal while Sagamu segments manufacture Noodles and Pasta. The Apapa generates the maximum revenue for the company.
69GF Score
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