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Sunmoon Food CoSGX:AAJ -8.33% Gross Margin % is 4.38% as of Mar. 2026, which is 52% above its 10-year median of 2.88. The stock has 4 warning signs investors should review. Among 306 Retail - Defensive companies, Sunmoon Food Co ranks worse than 94.77% on this metric.
Sunmoon Food Co (SGX:AAJ) Gross Margin % Explanation
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
Sunmoon Food Co had a gross margin of 4.38% 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.
Sunmoon Food Co Gross Margin % Related Terms
Sunmoon Food Co Gross Margin % Historical Data
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The historical data trend for Sunmoon Food Co'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.
SGX:AAJ vs SYY, USFD, PFGC: Gross Margin % Comparison
For the Food Distribution subindustry, Sunmoon Food Co'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.
Sunmoon Food Co Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sunmoon Food Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sunmoon Food Co'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.
Sunmoon Food Co (SGX:AAJ) has a Gross Margin % of 4.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sunmoon Food Co and its competitors. This is 52% above median its historical median of 2.88. Over the past decade, Sunmoon Food Co's Gross Margin % has ranged from 1.12 to 5.05. According to the industry distribution chart, Sunmoon Food Co ranks #290 out of 306 companies in the Retail - Defensive industry, placing it in the top 94.8%.
Is Sunmoon Food Co's Gross Margin % too high?
Sunmoon Food Co's current Gross Margin % of 4.38% is 52% above median its 10-year median of 2.88. Over the past 10 years, this metric has ranged from a low of 1.12 to a high of 5.05. The Retail - Defensive industry median Gross Margin % is 24.17. Sunmoon Food Co's value of 4.38% is 81.9% below this industry median. Based on the distribution chart, Sunmoon Food Co ranks #290 out of 306 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers.
How does Sunmoon Food Co's Gross Margin % compare to SYY and USFD?
According to the Retail - Defensive industry distribution chart, Sunmoon Food Co ranks #290 out of 306 companies for Gross Margin %. This places Sunmoon Food Co in the lower half of its industry. The industry median Gross Margin % is 24.17. Sunmoon Food Co's value of 4.38% is 81.9% below this benchmark. Historically, Sunmoon Food Co's own Gross Margin % has ranged from 1.12 to 5.05 over the past decade. While the company's 10-year median is 2.88 vs. the industry median of 24.17, Sunmoon Food Co 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 Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.17, based on 306 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. Sunmoon Food Co's current Gross Margin % of 4.38% is 81.9% 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 Sunmoon Food Co and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunmoon Food Co's current Gross Margin % is 4.38%, which is 52% above median its own 10-year median of 2.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunmoon Food Co stock overvalued right now?
Based on GuruFocus' analysis, Sunmoon Food Co (SGX:AAJ) is currently considered Fairly Valued. The stock's GF Value™ is S$0.02, compared to a current price of S$0.02 — trading 10% above its estimated fair value. The current Gross Margin % is 4.38%, which is 52% above median its 10-year median of 2.88 and 81.9% below the Retail - Defensive industry median of 24.17. 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 Sunmoon Food Co (SGX:AAJ), the current Gross Margin % is 4.38% 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.
Sunmoon Food Co Ltd is the distributor and marketer of branded fresh fruits, vegetables, and consumer products. The company is engaged in the sales of fruits, vegetables, seafood, meat, aqua-food, agri-food-related products, and any other ancillary products globally. Geographically, the company derives a majority of its revenue from China and also has a presence in ASEAN and other countries. The product category of the company includes Fresh fruits and consumer products.
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