Smithfield FoodsSFD -1.09%30 Gross Margin % is 13.45% as of Mar. 2026, which is 14% above its 10-year median of 11.82. GuruFocus rates SFD with a GF Score™ of 30/100. The stock has 2 warning signs investors should review. Among 1,902 Consumer Packaged Goods companies, Smithfield Foods ranks worse than 78.97% 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
Smithfield Foods had a gross margin of 13.45% for the quarter that ended in Mar. 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.
Smithfield Foods Gross Margin % Related Terms
Smithfield Foods Gross Margin % Historical Data
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The historical data trend for Smithfield Foods'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 Packaged Foods subindustry, Smithfield Foods'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.
Smithfield Foods Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Smithfield Foods's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Smithfield Foods'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.
Smithfield Foods (SFD) has a Gross Margin % of 13.45% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Smithfield Foods and its competitors. This is 14% above median its historical median of 11.82. Over the past decade, Smithfield Foods' Gross Margin % has ranged from 6.07 to 14.05. According to the industry distribution chart, Smithfield Foods ranks #1502 out of 1902 companies in the Consumer Packaged Goods industry, placing it in the top 79%.
Is Smithfield Foods' Gross Margin % too high?
Smithfield Foods' current Gross Margin % of 13.45% is 14% above median its 10-year median of 11.82. Over the past 10 years, this metric has ranged from a low of 6.07 to a high of 14.05. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Smithfield Foods' value of 13.45% is 49% below this industry median. Based on the distribution chart, Smithfield Foods ranks #1502 out of 1902 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Smithfield Foods has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Smithfield Foods' Gross Margin % compare to DAR and SJM?
According to the Consumer Packaged Goods industry distribution chart, Smithfield Foods ranks #1502 out of 1902 companies for Gross Margin %. This places Smithfield Foods in the lower half of its industry. The industry median Gross Margin % is 26.37. Smithfield Foods' value of 13.45% is 49% below this benchmark. Historically, Smithfield Foods' own Gross Margin % has ranged from 6.07 to 14.05 over the past decade. While the company's 10-year median is 11.82 vs. the industry median of 26.37, Smithfield Foods 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 1,902 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. Smithfield Foods's current Gross Margin % of 13.45% is 49% 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 Smithfield Foods 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. Smithfield Foods's current Gross Margin % is 13.45%, which is 14% above median its own 10-year median of 11.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smithfield Foods stock overvalued right now?
Smithfield Foods (SFD) has a current Gross Margin % of 13.45%. The current Gross Margin % is 13.45%, which is 14% above median its 10-year median of 11.82 and 49% below the Consumer Packaged Goods industry median of 26.37. Smithfield Foods' overall GF Score™ is 30/100 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 Smithfield Foods (SFD), the current Gross Margin % is 13.45% 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.
Smithfield Foods Inc is a hog producer and pork processor based in the United States of America. The company conducts its operations through three reportable segments: Packaged Meats, Fresh Pork, and Hog Production. The company generates the maximum of its revenue from the Packaged Meats segment. The Packaged Meats segment consists of the company's U.S. operations that process fresh meat into a wide variety of packaged meats products, including bacon, sausage, hot dogs, deli and lunch meats, dry sausage products (such as pepperoni and genoa), ham products, ready-to-eat products and prepared foods (such as pre-cooked entrees, bacon and sausage).
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