Zara Investment (Holding) Co (AMM:ZARA) 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
Zara Investment (Holding) Co had a gross margin of -0.26% 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.
Zara Investment (Holding) Co Gross Margin % Related Terms
Zara Investment (Holding) Co 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.
AMM:ZARA vs MAR, HLT, H: Gross Margin % Comparison
For the Lodging subindustry, Zara Investment (Holding) 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.
Zara Investment (Holding) Co Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Zara Investment (Holding) Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zara Investment (Holding) 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.
Zara Investment (Holding) Co (AMM:ZARA) has a Gross Margin % of -0.26% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zara Investment (Holding) Co and its competitors. According to the industry distribution chart, Zara Investment (Holding) Co ranks #700 out of 793 companies in the Travel & Leisure industry, placing it in the top 88.3%.
Is Zara Investment (Holding) Co's Gross Margin % too high?
Zara Investment (Holding) Co's current Gross Margin % is -0.26%. Based on the distribution chart, Zara Investment (Holding) Co ranks #700 out of 793 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Zara Investment (Holding) Co has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zara Investment (Holding) Co's Gross Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Zara Investment (Holding) Co ranks #700 out of 793 companies for Gross Margin %. This places Zara Investment (Holding) Co in the lower half of its industry. The industry median Gross Margin % is 43.92. 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 43.92, 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. 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 Zara Investment (Holding) Co and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zara Investment (Holding) Co's current Gross Margin % is -0.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zara Investment (Holding) Co stock overvalued right now?
Based on GuruFocus' analysis, Zara Investment (Holding) Co (AMM:ZARA) is currently considered Fairly Valued. The stock's GF Value™ is JOD0.48, compared to a current price of JOD0.51 — trading 6.3% above its estimated fair value. The current Gross Margin % is -0.26%. Zara Investment (Holding) Co's overall GF Score™ is 58/100 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 Zara Investment (Holding) Co (AMM:ZARA), the current Gross Margin % is -0.26% 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 Zara Investment (Holding) Co (AMM:ZARA) Overvalued in 2026?
Based on GuruFocus' analysis, Zara Investment (Holding) Co stock appears to be overvalued.
The current stock price of JOD0.51 is trading 6.3% above its estimated GF Value™ of JOD0.48.
GuruFocus considers Zara Investment (Holding) Co to be Fairly Valued.
Key valuation signals for AMM:ZARA:
Gross Margin %: -0.26%
GF Value™: JOD0.48 vs. price of JOD0.51 (6.3% above fair value)
No single metric tells the full story. See the AMM:ZARA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zara Investment (Holding) Co Ltd is the owner of luxury 5-star hotels in Jordan with strategic locations in Amman, Dead Sea, Petra, and Aqaba. Zara owns seven 5-star hotels with a combined total of more than 2000 rooms.
58GF Score
Get the complete analysis for AMM:ZARA
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