Nestle NigeriaNSA:NESTLE 76 Gross Margin % is 40.49% as of Mar. 2026, which is 0% below its 10-year median of 40.50. GuruFocus rates NSA:NESTLE with a GF Score™ of 76/100 and a GF Value™ of ₦2,149.87 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,902 Consumer Packaged Goods companies, Nestle Nigeria ranks better than 69.82% on this metric.
Nestle Nigeria PLC gross margin has been in long-term decline. The average rate of decline per year is -3%.
The historical rank and industry rank for Nestle Nigeria's Gross Margin % or its related term are showing as below:
NSA:NESTLE'
s Gross Margin % Range Over the Past 10 Years
Min: 31.95 Med: 40.5 Max: 45.12
Current: 36.18
During the past 13 years, the highestGross Margin % of Nestle Nigeria was 45.12%. The lowest was 31.95%. And the median was 40.50%.
NSA:NESTLE's Gross Margin % is ranked better than 69.82% of 1902
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs NSA:NESTLE: 36.18
Nestle Nigeria had a gross margin of 40.49% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nestle Nigeria was -3.00% per year.
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
Nestle Nigeria had a gross margin of 40.49% for the quarter that ended in Mar. 2026 => 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.
Nestle Nigeria Gross Margin % Related Terms
Nestle Nigeria Gross Margin % Historical Data
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The historical data trend for Nestle Nigeria'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:NESTLE vs KHC, GIS, JBS: Gross Margin % Comparison
For the Packaged Foods subindustry, Nestle Nigeria'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.
Nestle Nigeria Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Nigeria's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nestle Nigeria'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.
Nestle Nigeria (NSA:NESTLE) has a Gross Margin % of 40.49% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nestle Nigeria and its competitors. This is near median its historical median of 40.50. Over the past decade, Nestle Nigeria's Gross Margin % has ranged from 31.95 to 45.12. According to the industry distribution chart, Nestle Nigeria ranks #574 out of 1902 companies in the Consumer Packaged Goods industry, placing it in the top 30.2%.
Is Nestle Nigeria's Gross Margin % too high?
Nestle Nigeria's current Gross Margin % of 40.49% is near median its 10-year median of 40.50. Over the past 10 years, this metric has ranged from a low of 31.95 to a high of 45.12. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Nestle Nigeria's value of 40.49% is 53.5% above this industry median. Based on the distribution chart, Nestle Nigeria ranks #574 out of 1902 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Nestle Nigeria has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nestle Nigeria's Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle Nigeria ranks #574 out of 1902 companies for Gross Margin %. This puts Nestle Nigeria in the upper half of its industry. The industry median Gross Margin % is 26.37. Nestle Nigeria's value of 40.49% is 53.5% above this benchmark. Historically, Nestle Nigeria's own Gross Margin % has ranged from 31.95 to 45.12 over the past decade. While the company's 10-year median is 40.50 vs. the industry median of 26.37, Nestle Nigeria 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,902 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. Nestle Nigeria's current Gross Margin % of 40.49% is 53.5% 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 Nestle Nigeria 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. Nestle Nigeria's current Gross Margin % is 40.49%, which is near median its own 10-year median of 40.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle Nigeria stock overvalued right now?
Based on GuruFocus' analysis, Nestle Nigeria (NSA:NESTLE) is currently considered Significantly Overvalued. The stock's GF Value™ is ₦2,149.87, compared to a current price of ₦3,125.00 — trading 45.4% above its estimated fair value. The current Gross Margin % is 40.49%, which is near median its 10-year median of 40.50 and 53.5% above the Consumer Packaged Goods industry median of 26.37. Nestle Nigeria's overall GF Score™ is 76/100 with 8 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 Nestle Nigeria (NSA:NESTLE), the current Gross Margin % is 40.49% 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 Nestle Nigeria (NSA:NESTLE) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle Nigeria stock appears to be overvalued.
The current stock price of ₦3,125.00 is trading 45.4% above its estimated GF Value™ of ₦2,149.87.
GuruFocus considers Nestle Nigeria to be Significantly Overvalued.
Key valuation signals for NSA:NESTLE:
Gross Margin %: 40.49% (near median its 10-year median of 40.50)
GF Value™: ₦2,149.87 vs. price of ₦3,125.00 (45.4% above fair value)
Industry Position: 53.5% above the Consumer Packaged Goods median (#574 of 1902)
No single metric tells the full story. See the NSA:NESTLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nestle Nigeria PLC is a food and beverage company. It is involved in the business of manufacturing, marketing, and distribution of food products. The firm has categorized its products into Baby foods, Coffee, Culinary, Dairy, Drinks, and Recipes. It develops and markets its products under brands such as Cerelac, Nescafe, Nido, Maggi, Milo, etc. The company has Food and Beverage reportable segments. The Food segment engaged in the production and sale of Maggi, Cerelac, SMA, Nan, Lactogen, and Golden Morn. The Beverage segment consists of the production and sale of Milo, Chocomilo, Nido, Nescafe, Milo ready-to-drink, and Nestle Pure Life. The Food segment generates the majority of the revenue. Geographically, the majority of the revenue is generated from Nigeria.
76GF Score
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