Pepkor HoldingsPPKRF 82 Gross Margin % is 40.83% as of Mar. 2026, which is 16% above its 10-year median of 35.34. GuruFocus rates PPKRF with a GF Score™ of 82/100 and a GF Value™ of $1.58. The stock has 2 warning signs investors should review. Among 1,113 Retail - Cyclical companies, Pepkor Holdings ranks better than 58.94% 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
Pepkor Holdings had a gross margin of 40.83% 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.
Pepkor Holdings Gross Margin % Related Terms
Pepkor Holdings Gross Margin % Historical Data
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The historical data trend for Pepkor Holdings'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.
For the Department Stores subindustry, Pepkor Holdings'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.
Pepkor Holdings Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Pepkor Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pepkor Holdings'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.
Pepkor Holdings (PPKRF) has a Gross Margin % of 40.83% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Pepkor Holdings and its competitors. This is 16% above median its historical median of 35.34. Over the past decade, Pepkor Holdings' Gross Margin % has ranged from 34.17 to 40.68. According to the industry distribution chart, Pepkor Holdings ranks #457 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 41.1%.
Is Pepkor Holdings' Gross Margin % too high?
Pepkor Holdings' current Gross Margin % of 40.83% is 16% above median its 10-year median of 35.34. Over the past 10 years, this metric has ranged from a low of 34.17 to a high of 40.68. The Retail - Cyclical industry median Gross Margin % is 36.37. Pepkor Holdings' value of 40.83% is 12.3% above this industry median. Based on the distribution chart, Pepkor Holdings ranks #457 out of 1113 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Pepkor Holdings has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Pepkor Holdings' Gross Margin % compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Pepkor Holdings ranks #457 out of 1113 companies for Gross Margin %. This puts Pepkor Holdings in the upper half of its industry. The industry median Gross Margin % is 36.37. Pepkor Holdings' value of 40.83% is 12.3% above this benchmark. Historically, Pepkor Holdings' own Gross Margin % has ranged from 34.17 to 40.68 over the past decade. While the company's 10-year median is 35.34 vs. the industry median of 36.37, Pepkor Holdings 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 - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.37, based on 1,113 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. Pepkor Holdings's current Gross Margin % of 40.83% is 12.3% 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 Pepkor Holdings and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pepkor Holdings's current Gross Margin % is 40.83%, which is 16% above median its own 10-year median of 35.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pepkor Holdings stock overvalued right now?
Pepkor Holdings (PPKRF) has a current Gross Margin % of 40.83%. The stock's GF Value™ is $1.58, compared to a current price of $1.30 — trading 17.7% below its estimated fair value. The current Gross Margin % is 40.83%, which is 16% above median its 10-year median of 35.34 and 12.3% above the Retail - Cyclical industry median of 36.37. Pepkor Holdings' overall GF Score™ is 82/100 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 Pepkor Holdings (PPKRF), the current Gross Margin % is 40.83% 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 Pepkor Holdings (PPKRF) Overvalued in 2026?
Based on GuruFocus' analysis, Pepkor Holdings stock appears to be undervalued.
The current stock price of $1.30 is trading 17.7% below its estimated GF Value™ of $1.58.
Key valuation signals for PPKRF:
Gross Margin %: 40.83% (16% above median its 10-year median of 35.34)
GF Value™: $1.58 vs. price of $1.30 (17.7% below fair value)
Industry Position: 12.3% above the Retail - Cyclical median (#457 of 1113)
No single metric tells the full story. See the PPKRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pepkor Holdings Ltd is a South African retail investment company specializing in discount and value consumer goods. The company operates across three segments: i) Clothing and general merchandise: This segment includes all clothing, footwear and homeware (CFH) retail brands. ii) Furniture, appliances and electronics: This segment includes the Pepkor Lifestyle retail business. iii) FinTech: This segment provides Financial services including Lending, Insurance, etc. The company derives the majority of its revenue from the Clothing and general merchandise segment. Geographically, it generates the maximum revenue from South Africa.
82GF Score
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