African Rainbow MineralsAFBOF 82 Gross Margin % is 33.35% as of Dec. 2025, which is 99% above its 10-year median of 16.72. GuruFocus rates AFBOF with a GF Score™ of 82/100 and a GF Value™ of $12.88 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 730 Metals & Mining companies, African Rainbow Minerals ranks worse than 60.41% 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
African Rainbow Minerals had a gross margin of 33.35% for the quarter that ended in Dec. 2025 => 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.
African Rainbow Minerals Gross Margin % Related Terms
African Rainbow Minerals Gross Margin % Historical Data
* 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.
For the Other Industrial Metals & Mining subindustry, African Rainbow Minerals'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.
African Rainbow Minerals Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, African Rainbow Minerals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where African Rainbow Minerals'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.
African Rainbow Minerals (AFBOF) has a Gross Margin % of 33.35% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on African Rainbow Minerals and its competitors. This is 99% above median its historical median of 16.72. According to the industry distribution chart, African Rainbow Minerals ranks #441 out of 730 companies in the Metals & Mining industry, placing it in the top 60.4%.
Is African Rainbow Minerals' Gross Margin % too high?
African Rainbow Minerals' current Gross Margin % of 33.35% is 99% above median its 10-year median of 16.72. The Metals & Mining industry median Gross Margin % is 26.05. African Rainbow Minerals' value of 33.35% is 28% above this industry median. Based on the distribution chart, African Rainbow Minerals ranks #441 out of 730 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, African Rainbow Minerals has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does African Rainbow Minerals' Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, African Rainbow Minerals ranks #441 out of 730 companies for Gross Margin %. This places African Rainbow Minerals in the lower half of its industry. The industry median Gross Margin % is 26.05. African Rainbow Minerals' value of 33.35% is 28% above this benchmark. While the company's 10-year median is 16.72 vs. the industry median of 26.05, African Rainbow Minerals 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.05, based on 730 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. African Rainbow Minerals's current Gross Margin % of 33.35% is 28% 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 African Rainbow Minerals and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. African Rainbow Minerals's current Gross Margin % is 33.35%, which is 99% above median its own 10-year median of 16.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Rainbow Minerals stock overvalued right now?
Based on GuruFocus' analysis, African Rainbow Minerals (AFBOF) is currently considered Modestly Undervalued. The stock's GF Value™ is $12.88, compared to a current price of $11.07 — trading 14.1% below its estimated fair value. The current Gross Margin % is 33.35%, which is 99% above median its 10-year median of 16.72 and 28% above the Metals & Mining industry median of 26.05. African Rainbow Minerals' overall GF Score™ is 82/100 with 6 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 African Rainbow Minerals (AFBOF), the current Gross Margin % is 33.35% as of Dec. 2025. 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 African Rainbow Minerals (AFBOF) Overvalued in 2026?
Based on GuruFocus' analysis, African Rainbow Minerals stock appears to be undervalued.
The current stock price of $11.07 is trading 14.1% below its estimated GF Value™ of $12.88.
GuruFocus considers African Rainbow Minerals to be Modestly Undervalued.
Key valuation signals for AFBOF:
Gross Margin %: 33.35% (99% above median its 10-year median of 16.72)
GF Value™: $12.88 vs. price of $11.07 (14.1% below fair value)
Industry Position: 28% above the Metals & Mining median (#441 of 730)
No single metric tells the full story. See the AFBOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
African Rainbow Minerals Ltd is a South African diversified mining and minerals company with operations in South Africa and Malaysia. The group operates through four main segments: ARM Platinum, which includes platinum group metals and nickel; ARM Ferrous, focused on iron ore, manganese ore, and chrome ore; ARM Coal, operating mainly in the Goedgevonden Mine; and ARM Corporate, which includes Machadodorp Works, gold investments, and other activities. The company produces manganese alloys and holds a strategic investment in gold. The company generates the majority of its revenue from South Africa and maintains a presence in Europe, the Americas, and the Far and Middle East.
82GF Score
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