ULCC's Gross Margin % is ranked worse than 97.97% of 985
companies
in the Transportation industry
Industry Median: 20.42
vs ULCC: -5.44
Frontier Group Holdings had a gross margin of -20.97% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Frontier Group Holdings was 0.00% per year.
Frontier Group Holdings (NAS:ULCC) 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
Frontier Group Holdings had a gross margin of -20.97% 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.
Frontier Group Holdings Gross Margin % Related Terms
Frontier Group Holdings 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.
ULCC vs RJET, JBLU, ALGT: Gross Margin % Comparison
For the Airlines subindustry, Frontier Group 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.
Frontier Group Holdings Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Frontier Group Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Frontier Group 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.
Frontier Group Holdings (ULCC) has a Gross Margin % of -20.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Frontier Group Holdings and its competitors. According to the industry distribution chart, Frontier Group Holdings ranks #965 out of 985 companies in the Transportation industry, placing it in the top 98%.
Is Frontier Group Holdings' Gross Margin % too high?
Frontier Group Holdings' current Gross Margin % is -20.97%. Based on the distribution chart, Frontier Group Holdings ranks #965 out of 985 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Frontier Group Holdings has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Frontier Group Holdings' Gross Margin % compare to RJET and JBLU?
According to the Transportation industry distribution chart, Frontier Group Holdings ranks #965 out of 985 companies for Gross Margin %. This places Frontier Group Holdings in the lower half of its industry. The industry median Gross Margin % is 20.42. 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 Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 985 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 Frontier Group Holdings and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frontier Group Holdings's current Gross Margin % is -20.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frontier Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Frontier Group Holdings (ULCC) is currently considered Significantly Overvalued. The stock's GF Value™ is $5.54, compared to a current price of $7.85 — trading 41.7% above its estimated fair value. The current Gross Margin % is -20.97%. Frontier Group Holdings' overall GF Score™ is 71/100 with 10 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 Frontier Group Holdings (ULCC), the current Gross Margin % is -20.97% 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 Frontier Group Holdings (ULCC) Overvalued in 2026?
Based on GuruFocus' analysis, Frontier Group Holdings stock appears to be overvalued.
The current stock price of $7.85 is trading 41.7% above its estimated GF Value™ of $5.54.
GuruFocus considers Frontier Group Holdings to be Significantly Overvalued.
Key valuation signals for ULCC:
Gross Margin %: -20.97%
GF Value™: $5.54 vs. price of $7.85 (41.7% above fair value)
No single metric tells the full story. See the ULCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frontier Group Holdings Inc is an ultra-low-cost carrier whose business is focused on Low Fares Done Right. The company owns a fleet of 120 Airbus single-aisle aircraft, consisting of 13 A320ceos, 82 A320neos, 21 A321ceos, and 4 A321neos. The use of these aircraft, their seating configuration, weight-saving tactics, and baggage process have all contributed to the ability to continue to be the fuel-efficient of all the U.S. The Company is managed as a single business unit that provides air transportation for passengers. The majority of revenue is from Domestic flight follow by International.
71GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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