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Newtree CoXKRX:270870 +2.21%79 Gross Margin % is 73.74% as of Jun. 2026, which is 4% below its 10-year median of 76.72. GuruFocus rates XKRX:270870 with a GF Score™ of 79/100 and a GF Value™ of ₩4,821.58 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,928 Consumer Packaged Goods companies, Newtree Co ranks better than 94.76% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Newtree Co's Gross Profit for the
three
months ended in Jun. 2026 was ₩20,916 Mil. Newtree Co's Revenue for the
three
months ended in Jun. 2026 was ₩28,362 Mil. Therefore, Newtree Co's Gross Margin % for the quarter that ended in Jun. 2026 was 73.74%.
Warning Sign:
Newtree Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for Newtree Co's Gross Margin % or its related term are showing as below:
XKRX:270870'
s Gross Margin % Range Over the Past 10 Years
Min: 70.72 Med: 76.72 Max: 78.7
Current: 70.72
During the past 10 years, the highestGross Margin % of Newtree Co was 78.70%. The lowest was 70.72%. And the median was 76.72%.
XKRX:270870's Gross Margin % is ranked better than 94.76% of 1928
companies
in the Consumer Packaged Goods industry
Industry Median: 26.155
vs XKRX:270870: 70.72
Newtree Co had a gross margin of 73.74% for the quarter that ended in Jun. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Newtree Co was -1.30% per year.
Newtree Co (XKRX:270870) 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
Newtree Co had a gross margin of 73.74% for the quarter that ended in Jun. 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.
Newtree Co Gross Margin % Related Terms
Newtree Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Newtree 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.
XKRX:270870 vs KHC, GIS: Gross Margin % Comparison
For the Packaged Foods subindustry, Newtree 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.
Newtree Co Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Newtree Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Newtree 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.
Newtree Co (XKRX:270870) has a Gross Margin % of 73.74% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Newtree Co and its competitors. This is near median its historical median of 76.72. Over the past decade, Newtree Co's Gross Margin % has ranged from 70.72 to 78.70. According to the industry distribution chart, Newtree Co ranks #101 out of 1928 companies in the Consumer Packaged Goods industry, placing it in the top 5.2%.
Is Newtree Co's Gross Margin % too high?
Newtree Co's current Gross Margin % of 73.74% is near median its 10-year median of 76.72. Over the past 10 years, this metric has ranged from a low of 70.72 to a high of 78.70. The Consumer Packaged Goods industry median Gross Margin % is 26.16. Newtree Co's value of 73.74% is 181.9% above this industry median. Based on the distribution chart, Newtree Co ranks #101 out of 1928 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Newtree Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Newtree Co's Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Newtree Co ranks #101 out of 1928 companies for Gross Margin %. This places Newtree Co in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.16. Newtree Co's value of 73.74% is 181.9% above this benchmark. Historically, Newtree Co's own Gross Margin % has ranged from 70.72 to 78.70 over the past decade. While the company's 10-year median is 76.72 vs. the industry median of 26.16, Newtree Co 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.16, based on 1,928 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. Newtree Co's current Gross Margin % of 73.74% is 181.9% 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 Newtree Co and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Newtree Co's current Gross Margin % is 73.74%, which is near median its own 10-year median of 76.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newtree Co stock overvalued right now?
Based on GuruFocus' analysis, Newtree Co (XKRX:270870) is currently considered Modestly Undervalued. The stock's GF Value™ is ₩4,821.58, compared to a current price of ₩3,935.00 — trading 18.4% below its estimated fair value. The current Gross Margin % is 73.74%, which is near median its 10-year median of 76.72 and 181.9% above the Consumer Packaged Goods industry median of 26.16. Newtree Co's overall GF Score™ is 79/100 with 4 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 Newtree Co (XKRX:270870), the current Gross Margin % is 73.74% as of Jun. 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 Newtree Co (XKRX:270870) Overvalued in 2026?
Based on GuruFocus' analysis, Newtree Co stock appears to be undervalued.
The current stock price of ₩3,935.00 is trading 18.4% below its estimated GF Value™ of ₩4,821.58.
GuruFocus considers Newtree Co to be Modestly Undervalued.
Key valuation signals for XKRX:270870:
Gross Margin %: 73.74% (near median its 10-year median of 76.72)
GF Value™: ₩4,821.58 vs. price of ₩3,935.00 (18.4% below fair value)
Industry Position: 181.9% above the Consumer Packaged Goods median (#101 of 1928)
No single metric tells the full story. See the XKRX:270870 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Newtree Co Ltd is a South Korea-based company engaged in the research and development of biotechnology-based ingredients and products of healthy beauty. The company develops and distributes natural-derived inner beauty functional food ingredients and finished products based on its proprietary biotechnology and naturalism.
79GF Score
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