BABBABB -0.72%57 Net Margin % is 16.44% as of Feb. 2026, which is 6% above its 10-year median of 15.53. GuruFocus rates BABB with a GF Score™ of 57/100 and a GF Value™ of $0.80 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,952 Consumer Packaged Goods companies, BAB ranks better than 90.68% on this metric.
Net margin is calculated as Net Income divided by its Revenue. BAB's Net Income for the
three
months ended in Feb. 2026 was $0.12 Mil. BAB's Revenue for the
three
months ended in Feb. 2026 was $0.72 Mil. Therefore, BAB's net margin for the quarter that ended in Feb. 2026 was 16.44%.
The historical rank and industry rank for BAB's Net Margin % or its related term are showing as below:
BABB'
s Net Margin % Range Over the Past 10 Years
Min: -2.78 Med: 15.53 Max: 23.38
Current: 16.5
BABB's Net Margin % is ranked better than 90.68% of 1952
companies
in the Consumer Packaged Goods industry
Industry Median: 3.495
vs BABB: 16.50
BAB (OTCPK:BABB) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
BAB Net Margin % Related Terms
BAB Net Margin % Historical Data
* Premium members only.
The historical data trend for BAB's Net 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.
BABB vs MTTCF, GPOX, INBP: Net Margin % Comparison
For the Packaged Foods subindustry, BAB's Net Margin %, along with its competitors' market caps and Net 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.
BAB Net Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, BAB's Net Margin % distribution charts can be found below:
* The bar in red indicates where BAB's Net 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.
BAB (BABB) has a Net Margin % of 16.44% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on BAB and its competitors. This is near median its historical median of 15.53. According to the industry distribution chart, BAB ranks #182 out of 1952 companies in the Consumer Packaged Goods industry, placing it in the top 9.3%.
Is BAB's Net Margin % too high?
BAB's current Net Margin % of 16.44% is near median its 10-year median of 15.53. The Consumer Packaged Goods industry median Net Margin % is 3.50. BAB's value of 16.44% is 370.4% above this industry median. Based on the distribution chart, BAB ranks #182 out of 1952 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, BAB has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BAB's Net Margin % compare to MTTCF and GPOX?
According to the Consumer Packaged Goods industry distribution chart, BAB ranks #182 out of 1952 companies for Net Margin %. This places BAB in the top 9% of its industry — outperforming the majority of peers. The industry median Net Margin % is 3.50. BAB's value of 16.44% is 370.4% above this benchmark. While the company's 10-year median is 15.53 vs. the industry median of 3.50, BAB 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 Net Margin % for a Consumer Packaged Goods company?
The median Net Margin % among Consumer Packaged Goods companies is 3.50, based on 1,952 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BAB's current Net Margin % of 16.44% is 370.4% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on BAB and its competitors. For the Consumer Packaged Goods industry, the median Net Margin % is 3.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAB's current Net Margin % is 16.44%, which is near median its own 10-year median of 15.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAB stock overvalued right now?
Based on GuruFocus' analysis, BAB (BABB) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.80, compared to a current price of $0.88 — trading 10.6% above its estimated fair value. The current Net Margin % is 16.44%, which is near median its 10-year median of 15.53 and 370.4% above the Consumer Packaged Goods industry median of 3.50. BAB's overall GF Score™ is 57/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For BAB (BABB), the current Net Margin % is 16.44% 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 BAB (BABB) Overvalued in 2026?
Based on GuruFocus' analysis, BAB stock appears to be overvalued.
The current stock price of $0.88 is trading 10.6% above its estimated GF Value™ of $0.80.
GuruFocus considers BAB to be Modestly Overvalued.
Key valuation signals for BABB:
Net Margin %: 16.44% (near median its 10-year median of 15.53)
GF Value™: $0.80 vs. price of $0.88 (10.6% above fair value)
Industry Position: 370.4% above the Consumer Packaged Goods median (#182 of 1952)
No single metric tells the full story. See the BABB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAB Inc franchises and licenses bagel and muffin retail units under the Apple Bagels, My Favorite Muffin, and SweetDuet trade names. The company also sell its trademark bagels, muffins and coffee through nontraditional channels of distribution including under licensing agreements with Kohr Bros. Frozen Custard and Green Beans Coffee. It has approximately 61 franchise units and 4 licensed units in operation in 18 states across the United States and one international location.
57GF Score
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