Palms Sports PJSCADX:PALMS 62 Gross Margin % is 18.65% as of Mar. 2026, which is 22% below its 10-year median of 23.93. GuruFocus rates ADX:PALMS with a GF Score™ of 62/100 and a GF Value™ of د.إ11.77 (Significantly Undervalued). Among 793 Travel & Leisure companies, Palms Sports PJSC ranks worse than 83.98% on this metric.
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
Palms Sports PJSC had a gross margin of 18.65% 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.
Palms Sports PJSC Gross Margin % Related Terms
Palms Sports PJSC Gross Margin % Historical Data
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The historical data trend for Palms Sports PJSC'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.
ADX:PALMS vs AS, HAS, LTH: Gross Margin % Comparison
For the Leisure subindustry, Palms Sports PJSC'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.
Palms Sports PJSC Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Palms Sports PJSC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Palms Sports PJSC'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.
Palms Sports PJSC (ADX:PALMS) has a Gross Margin % of 18.65% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Palms Sports PJSC and its competitors. This is 22% below median its historical median of 23.93. Over the past decade, Palms Sports PJSC's Gross Margin % has ranged from 18.94 to 34.58. According to the industry distribution chart, Palms Sports PJSC ranks #666 out of 793 companies in the Travel & Leisure industry, placing it in the top 84%.
Is Palms Sports PJSC's Gross Margin % too high?
Palms Sports PJSC's current Gross Margin % of 18.65% is 22% below median its 10-year median of 23.93. Over the past 10 years, this metric has ranged from a low of 18.94 to a high of 34.58. The Travel & Leisure industry median Gross Margin % is 44.02. Palms Sports PJSC's value of 18.65% is 57.6% below this industry median. Based on the distribution chart, Palms Sports PJSC ranks #666 out of 793 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Palms Sports PJSC has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Palms Sports PJSC's Gross Margin % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Palms Sports PJSC ranks #666 out of 793 companies for Gross Margin %. This places Palms Sports PJSC in the lower half of its industry. The industry median Gross Margin % is 44.02. Palms Sports PJSC's value of 18.65% is 57.6% below this benchmark. Historically, Palms Sports PJSC's own Gross Margin % has ranged from 18.94 to 34.58 over the past decade. While the company's 10-year median is 23.93 vs. the industry median of 44.02, Palms Sports PJSC has consistently been below 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 Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 44.02, based on 793 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. Palms Sports PJSC's current Gross Margin % of 18.65% is 57.6% 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 Palms Sports PJSC and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 44.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palms Sports PJSC's current Gross Margin % is 18.65%, which is 22% below median its own 10-year median of 23.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palms Sports PJSC stock overvalued right now?
Based on GuruFocus' analysis, Palms Sports PJSC (ADX:PALMS) is currently considered Significantly Undervalued. The stock's GF Value™ is د.إ11.77, compared to a current price of د.إ7.74 — trading 34.2% below its estimated fair value. The current Gross Margin % is 18.65%, which is 22% below median its 10-year median of 23.93 and 57.6% below the Travel & Leisure industry median of 44.02. Palms Sports PJSC's overall GF Score™ is 62/100. 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 Palms Sports PJSC (ADX:PALMS), the current Gross Margin % is 18.65% 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 Palms Sports PJSC (ADX:PALMS) Overvalued in 2026?
Based on GuruFocus' analysis, Palms Sports PJSC stock appears to be undervalued.
The current stock price of د.إ7.74 is trading 34.2% below its estimated GF Value™ of د.إ11.77.
GuruFocus considers Palms Sports PJSC to be Significantly Undervalued.
Key valuation signals for ADX:PALMS:
Gross Margin %: 18.65% (22% below median its 10-year median of 23.93)
GF Value™: د.إ11.77 vs. price of د.إ7.74 (34.2% below fair value)
Industry Position: 57.6% below the Travel & Leisure median (#666 of 793)
No single metric tells the full story. See the ADX:PALMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palms Sports PJSC is a sports management and marketing company engaged in trading sports goods and providing sports enterprise investment, institutional management, and security guard services. its reportable segments are: Income from guarding and cleaning services, which includes the provision of security guard services and onshore and offshore oil cleaning services to customers; Income from coaching and training services, which generates the maximum revenue and includes providing specialized sports training services in Jiu-Jitsu, mixed martial arts, and combat sports; Income from educational services, which includes the provision of educational services and the management of educational institutes; and Others, which includes IT research and physiotherapy treatment services.
62GF Score
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