CVS Bay AreaTSE:2687 +0.21%39 Gross Margin % is 48.63% as of Feb. 2026, which is 34% above its 10-year median of 36.40. GuruFocus rates TSE:2687 with a GF Score™ of 39/100 and a GF Value™ of 円607.07 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 303 Retail - Defensive companies, CVS Bay Area ranks better than 92.08% on this metric.
The historical rank and industry rank for CVS Bay Area's Gross Margin % or its related term are showing as below:
TSE:2687'
s Gross Margin % Range Over the Past 10 Years
Min: 26.95 Med: 36.4 Max: 48.02
Current: 48.02
During the past 13 years, the highestGross Margin % of CVS Bay Area was 48.02%. The lowest was 26.95%. And the median was 36.40%.
TSE:2687's Gross Margin % is ranked better than 92.08% of 303
companies
in the Retail - Defensive industry
Industry Median: 24.08
vs TSE:2687: 48.02
CVS Bay Area had a gross margin of 48.63% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for CVS Bay Area was 12.70% per year.
CVS Bay Area (TSE:2687) 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
CVS Bay Area had a gross margin of 48.63% for the quarter that ended in Feb. 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.
CVS Bay Area Gross Margin % Related Terms
CVS Bay Area Gross Margin % Historical Data
* Premium members only.
The historical data trend for CVS Bay Area'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 Grocery Stores subindustry, CVS Bay Area'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.
CVS Bay Area Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, CVS Bay Area's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CVS Bay Area'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.
CVS Bay Area (TSE:2687) has a Gross Margin % of 48.63% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on CVS Bay Area and its competitors. This is 34% above median its historical median of 36.40. Over the past decade, CVS Bay Area's Gross Margin % has ranged from 26.95 to 48.02. According to the industry distribution chart, CVS Bay Area ranks #24 out of 303 companies in the Retail - Defensive industry, placing it in the top 7.9%.
Is CVS Bay Area's Gross Margin % too high?
CVS Bay Area's current Gross Margin % of 48.63% is 34% above median its 10-year median of 36.40. Over the past 10 years, this metric has ranged from a low of 26.95 to a high of 48.02. The Retail - Defensive industry median Gross Margin % is 24.08. CVS Bay Area's value of 48.63% is 102% above this industry median. Based on the distribution chart, CVS Bay Area ranks #24 out of 303 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, CVS Bay Area has a GF Score™ of 39/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does CVS Bay Area's Gross Margin % compare to KR?
According to the Retail - Defensive industry distribution chart, CVS Bay Area ranks #24 out of 303 companies for Gross Margin %. This places CVS Bay Area in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.08. CVS Bay Area's value of 48.63% is 102% above this benchmark. Historically, CVS Bay Area's own Gross Margin % has ranged from 26.95 to 48.02 over the past decade. While the company's 10-year median is 36.40 vs. the industry median of 24.08, CVS Bay Area 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 - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.08, based on 303 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. CVS Bay Area's current Gross Margin % of 48.63% is 102% 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 CVS Bay Area and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CVS Bay Area's current Gross Margin % is 48.63%, which is 34% above median its own 10-year median of 36.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CVS Bay Area stock overvalued right now?
Based on GuruFocus' analysis, CVS Bay Area (TSE:2687) is currently considered Modestly Undervalued. The stock's GF Value™ is 円607.07, compared to a current price of 円476.00 — trading 21.6% below its estimated fair value. The current Gross Margin % is 48.63%, which is 34% above median its 10-year median of 36.40 and 102% above the Retail - Defensive industry median of 24.08. CVS Bay Area's overall GF Score™ is 39/100 with 6 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 CVS Bay Area (TSE:2687), the current Gross Margin % is 48.63% 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 CVS Bay Area (TSE:2687) Overvalued in 2026?
Based on GuruFocus' analysis, CVS Bay Area stock appears to be undervalued.
The current stock price of 円476.00 is trading 21.6% below its estimated GF Value™ of 円607.07.
GuruFocus considers CVS Bay Area to be Modestly Undervalued.
Key valuation signals for TSE:2687:
Gross Margin %: 48.63% (34% above median its 10-year median of 36.40)
GF Value™: 円607.07 vs. price of 円476.00 (21.6% below fair value)
Industry Position: 102% above the Retail - Defensive median (#24 of 303)
No single metric tells the full story. See the TSE:2687 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CVS Bay Area Inc engaged in operating convenience store named Lawson and business hotel named Bay Hotel. The company is also engaged in mansion front business at condominiums and reception and office butler service for enterprise, and cleaning business.
39GF Score
Get the complete analysis for TSE:2687
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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