Amerigo ResourcesARREF +0.68%72 Gross Margin % is 26.74% as of Mar. 2026, which is 132% above its 10-year median of 11.55. GuruFocus rates ARREF with a GF Score™ of 72/100 and a GF Value™ of $1.52 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 730 Metals & Mining companies, Amerigo Resources ranks worse than 53.56% 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
Amerigo Resources had a gross margin of 26.74% for the quarter that ended in Mar. 2026 => 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.
Amerigo Resources Gross Margin % Related Terms
Amerigo Resources Gross Margin % Historical Data
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The historical data trend for Amerigo Resources'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.
For the Copper subindustry, Amerigo Resources'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.
Amerigo Resources Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Amerigo Resources's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Amerigo Resources'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.
Amerigo Resources (ARREF) has a Gross Margin % of 26.74% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Amerigo Resources and its competitors. This is 132% above median its historical median of 11.55. According to the industry distribution chart, Amerigo Resources ranks #391 out of 730 companies in the Metals & Mining industry, placing it in the top 53.6%.
Is Amerigo Resources' Gross Margin % too high?
Amerigo Resources' current Gross Margin % of 26.74% is 132% above median its 10-year median of 11.55. The Metals & Mining industry median Gross Margin % is 26.18. Amerigo Resources' value of 26.74% is 2.2% above this industry median. Based on the distribution chart, Amerigo Resources ranks #391 out of 730 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, Amerigo Resources has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Amerigo Resources' Gross Margin % compare to SCCO and FCX?
According to the Metals & Mining industry distribution chart, Amerigo Resources ranks #391 out of 730 companies for Gross Margin %. This places Amerigo Resources in the lower half of its industry. The industry median Gross Margin % is 26.18. Amerigo Resources' value of 26.74% is 2.2% above this benchmark. While the company's 10-year median is 11.55 vs. the industry median of 26.18, Amerigo Resources 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 26.18, 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. Amerigo Resources's current Gross Margin % of 26.74% is 2.2% 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 Amerigo Resources and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amerigo Resources's current Gross Margin % is 26.74%, which is 132% above median its own 10-year median of 11.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amerigo Resources stock overvalued right now?
Based on GuruFocus' analysis, Amerigo Resources (ARREF) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.52, compared to a current price of $4.27 — trading 180.9% above its estimated fair value. The current Gross Margin % is 26.74%, which is 132% above median its 10-year median of 11.55 and 2.2% above the Metals & Mining industry median of 26.18. Amerigo Resources' overall GF Score™ is 72/100 with 3 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 Amerigo Resources (ARREF), the current Gross Margin % is 26.74% 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 Amerigo Resources (ARREF) Overvalued in 2026?
Based on GuruFocus' analysis, Amerigo Resources stock appears to be overvalued.
The current stock price of $4.27 is trading 180.9% above its estimated GF Value™ of $1.52.
GuruFocus considers Amerigo Resources to be Significantly Overvalued.
Key valuation signals for ARREF:
Gross Margin %: 26.74% (132% above median its 10-year median of 11.55)
GF Value™: $1.52 vs. price of $4.27 (180.9% above fair value)
Industry Position: 2.2% above the Metals & Mining median (#391 of 730)
No single metric tells the full story. See the ARREF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Amerigo Resources Ltd is principally engaged in the production of copper and molybdenum concentrates through its operating subsidiary. The group operates in one segment, the production of copper concentrates under a tolling agreement with DET, with the production of molybdenum concentrates as a by-product. Geographically, it operates in Chile (where its copper mining assets and operations are based) and Canada.
72GF Score
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