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
Rocky Mountain Chocolate Factory had a gross margin of -0.22% for the quarter that ended in Feb. 2026 => 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.
Rocky Mountain Chocolate Factory Gross Margin % Related Terms
Rocky Mountain Chocolate Factory 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.
RMCF vs SOWG, MDLZ, HSY: Gross Margin % Comparison
For the Confectioners subindustry, Rocky Mountain Chocolate Factory'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.
Rocky Mountain Chocolate Factory Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Rocky Mountain Chocolate Factory's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rocky Mountain Chocolate Factory'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.
Rocky Mountain Chocolate Factory (RMCF) has a Gross Margin % of -0.22% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rocky Mountain Chocolate Factory and its competitors. Over the past decade, Rocky Mountain Chocolate Factory's Gross Margin % has ranged from 10.98 to 40.46. According to the industry distribution chart, Rocky Mountain Chocolate Factory ranks #1407 out of 1902 companies in the Consumer Packaged Goods industry, placing it in the top 74%.
Is Rocky Mountain Chocolate Factory's Gross Margin % too high?
Rocky Mountain Chocolate Factory's current Gross Margin % is -0.22%. Over the past 10 years, this metric has ranged from a low of 10.98 to a high of 40.46. Based on the distribution chart, Rocky Mountain Chocolate Factory ranks #1407 out of 1902 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Rocky Mountain Chocolate Factory has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rocky Mountain Chocolate Factory's Gross Margin % compare to SOWG and MDLZ?
According to the Consumer Packaged Goods industry distribution chart, Rocky Mountain Chocolate Factory ranks #1407 out of 1902 companies for Gross Margin %. This places Rocky Mountain Chocolate Factory in the lower half of its industry. The industry median Gross Margin % is 26.37. Historically, Rocky Mountain Chocolate Factory's own Gross Margin % has ranged from 10.98 to 40.46 over the past decade. 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. 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 Rocky Mountain Chocolate Factory 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. Rocky Mountain Chocolate Factory's current Gross Margin % is -0.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rocky Mountain Chocolate Factory stock overvalued right now?
Based on GuruFocus' analysis, Rocky Mountain Chocolate Factory (RMCF) is currently considered Modestly Undervalued. The stock's GF Value™ is $1.92, compared to a current price of $1.48 — trading 22.9% below its estimated fair value. The current Gross Margin % is -0.22%. Rocky Mountain Chocolate Factory's overall GF Score™ is 57/100 with 9 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 Rocky Mountain Chocolate Factory (RMCF), the current Gross Margin % is -0.22% as of Feb. 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 Rocky Mountain Chocolate Factory (RMCF) Overvalued in 2026?
Based on GuruFocus' analysis, Rocky Mountain Chocolate Factory stock appears to be undervalued.
The current stock price of $1.48 is trading 22.9% below its estimated GF Value™ of $1.92.
GuruFocus considers Rocky Mountain Chocolate Factory to be Modestly Undervalued.
Key valuation signals for RMCF:
Gross Margin %: -0.22%
GF Value™: $1.92 vs. price of $1.48 (22.9% below fair value)
No single metric tells the full story. See the RMCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rocky Mountain Chocolate Factory Business Description
Rocky Mountain Chocolate Factory Inc operates as a manufacturer of chocolate candies and confectionery products. The company prepares numerous products, including caramel apples in the store. The business activity of the firm functions through Franchising, Manufacturing, Retail Stores, and Others. The company derives maximum revenue through manufacturing activities. The products of the company include varieties of Clusters, Caramels, Creams, Toffees, Mints, and Truffles.
57GF Score
Get the complete analysis for RMCF
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