Gross Margin - Comvita Ltd (NZX:CVT)

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Price: 0.745 NZD -0.67%

Market Cap: 52.6m NZD

43%

Current

55%

Average

31.6%

Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin

43%

Gross Profit

82.7m

Revenue

192.4m

Gross Margin Across Competitors

Country	Company	Market Cap	Gross Margin
NZ	Comvita Ltd NZX:CVT	52.5m NZD	43%
FR	L'Oreal SA PAR:OR	194.1B EUR	74%
UK	Unilever PLC LSE:ULVR	112.6B GBP	0%
IN	Hindustan Unilever Ltd NSE:HINDUNILVR	5.8T INR	51%
UK	HALEON PLC LSE:HLN	32.5B GBP	64%
US	Estee Lauder Companies Inc NYSE:EL	34.8B USD	74%
DE	Beiersdorf AG XETRA:BEI	20.3B EUR	59%
JP	Kao Corp TSE:4452	3T JPY	39%
IN	Godrej Consumer Products Ltd NSE:GODREJCP	1.2T INR	54%
IN	Dabur India Ltd NSE:DABUR	892.8B INR	48%
CA	Relevium Technologies Inc XTSX:RLV	12.2B CAD	17%

Comvita Ltd
Glance View

Market Cap

52.5m NZD

Industry

Consumer products

Comvita Ltd. engages in the manufacture and marketing of healthcare, personal care, and functional food products. The company is headquartered in Te Puke, Bay Of Plenty. The company went IPO on 2003-11-14. The firm is engaged in the manufacturing and marketing natural health products, and apiary ownership and management. Its segments include New Zealand, which includes production and extraction facilities at Paengaroa, Northland, Waikato, Whanganui, Wairarapa, Hawkes Bay, East Coast, Nelson and Timaru, and Apiary operations in Northland, Waikato, Whanganui, Wairarapa, Hawkes Bay and East Coast; Australia, which includes over 242 hectares of olive leaf plantation, extraction and manufacturing facility in rural Queensland; Asia, which includes operations in Hong Kong, Taiwan, China, Japan, Korea and South Korea; Europe, which includes the operations in the United Kingdom and European markets; Medical, which includes bulk medical honey sales and royalty payments received from Derma Sciences, Inc., and Other, which captures revenue earned from other areas, including bulk sales, the United States and Canada.

View CVT Analysis

CVT Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
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US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

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	Berkshire Hathaway Inc NYSE:BRK.A	US
	Bank of America Corp NYSE:BAC	US
	Mastercard Inc NYSE:MA	US
	UnitedHealth Group Inc NYSE:UNH	US
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	Visa Inc NYSE:V	US
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	Walmart Inc NYSE:WMT	US
	Verizon Communications Inc NYSE:VZ	US
	Chevron Corp NYSE:CVX	US

	British Land Company PLC LSE:BLND	377.6 GBX -0.53%
	Safran SA PAR:SAF	309 EUR 0.36%

	Johnson & Johnson NYSE:JNJ	188.87 USD -0.1%
	Berkshire Hathaway Inc NYSE:BRK.A	715 740 USD -0.3%
	Bank of America Corp NYSE:BAC	53.45 USD 0.79%
	Mastercard Inc NYSE:MA	551.99 USD -0.31%
	UnitedHealth Group Inc NYSE:UNH	341.56 USD -0.93%
	Exxon Mobil Corp NYSE:XOM	114.36 USD -0.29%

	Franklin Covey Co NYSE:FC	16.96 USD 0.06%
	Mohawk Industries Inc NYSE:MHK	113.64 USD -1.69%
	Ardmore Shipping Corp NYSE:ASC	12.59 USD 1.04%
	ASGN Inc NYSE:ASGN	44.76 USD 2.12%
	Skyworks Solutions Inc NASDAQ:SWKS	77.72 USD -1.82%
	Weatherford International PLC NASDAQ:WFRD	73.69 USD 1.57%

Comvita Ltd
NZX:CVT