The historical rank and industry rank for The Alkaline Water Co's Gross Margin % or its related term are showing as below:
WTER's Gross Margin % is not ranked *
in the Beverages - Non-Alcoholic industry.
Industry Median: 38.43 * Ranked among companies with meaningful Gross Margin % only.
The Alkaline Water Co had a gross margin of 25.26% for the quarter that ended in Jun. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for The Alkaline Water Co was 0.00% per year.
The Alkaline Water Co (OTCPK:WTER) 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
The Alkaline Water Co had a gross margin of 25.26% for the quarter that ended in Jun. 2023 => Competition eroding margins
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.
The Alkaline Water Co Gross Margin % Related Terms
The Alkaline Water Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for The Alkaline Water 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.
WTER vs PSCBF, ASII, REED: Gross Margin % Comparison
For the Beverages - Non-Alcoholic subindustry, The Alkaline Water 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.
The Alkaline Water Co Gross Margin % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, The Alkaline Water Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Alkaline Water 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.
The Alkaline Water Co (WTER) has a Gross Margin % of 25.26% as of Jun. 2023. Gross margin is the ratio of total gross profit to net sales. View historical data on The Alkaline Water Co and its competitors.
Is The Alkaline Water Co's Gross Margin % too high?
The Alkaline Water Co's current Gross Margin % is 25.26%. The Beverages - Non-Alcoholic industry median Gross Margin % is 38.43. The Alkaline Water Co's value of 25.26% is 34.3% below this industry median. Overall, The Alkaline Water Co has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does The Alkaline Water Co's Gross Margin % compare to PSCBF and ASII?
The Alkaline Water Co's Gross Margin % of 25.26% can be compared against companies in the Beverages - Non-Alcoholic industry. The industry median Gross Margin % is 38.43. The Alkaline Water Co's value of 25.26% is 34.3% below this benchmark. 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 Beverages - Non-Alcoholic company?
The median Gross Margin % among Beverages - Non-Alcoholic companies is 38.43, based on 115 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. The Alkaline Water Co's current Gross Margin % of 25.26% is 34.3% 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 The Alkaline Water Co and its competitors. For the Beverages - Non-Alcoholic industry, the median Gross Margin % is 38.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Alkaline Water Co's current Gross Margin % is 25.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Alkaline Water Co stock overvalued right now?
The Alkaline Water Co (WTER) has a current Gross Margin % of 25.26%. The current Gross Margin % is 25.26% and 34.3% below the Beverages - Non-Alcoholic industry median of 38.43. The Alkaline Water Co's overall GF Score™ is 12/100. 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 The Alkaline Water Co (WTER), the current Gross Margin % is 25.26% as of Jun. 2023. 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.
The Alkaline Water Co Inc is engaged in the business of distributing and marketing bottled alkaline water for retail consumers of different sizes. The firm sells its product in 500ml, 700ml, 1-liter, 1.5-liter 3-liter, and 1-gallon sizes. Its only operating geographical segment being the United States of America. The company sells its product to convenience stores, natural food products stores, large ethnic markets, and national retailers.
12GF Score
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