Advanced Energy Minerals (ASX:AEM) 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
Advanced Energy Minerals had a gross margin of 59.63% for the quarter that ended in Dec. 2025 => Durable 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.
Advanced Energy Minerals Gross Margin % Related Terms
Advanced Energy 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.
Advanced Energy Minerals Gross Margin % Chart
Advanced Energy Minerals Annual Data
Trend
Dec23
Dec24
Dec25
Gross Margin %
0.00
-343.09
25.08
Advanced Energy Minerals Semi-Annual Data
Dec23
Jun24
Dec24
Jun25
Dec25
Gross Margin %
0.00
0.00
-611.97
-27.42
59.63
ASX:AEM vs AA, CENX: Gross Margin % Comparison
For the Aluminum subindustry, Advanced Energy 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.
Advanced Energy Minerals Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Advanced Energy Minerals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Advanced Energy 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.
Advanced Energy Minerals (ASX:AEM) has a Gross Margin % of 59.63% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Advanced Energy Minerals and its competitors. According to the industry distribution chart, Advanced Energy Minerals ranks #373 out of 728 companies in the Metals & Mining industry, placing it in the top 51.2%.
Is Advanced Energy Minerals' Gross Margin % too high?
Advanced Energy Minerals' current Gross Margin % is 59.63%. The Metals & Mining industry median Gross Margin % is 26.21. Advanced Energy Minerals' value of 59.63% is 127.6% above this industry median. Based on the distribution chart, Advanced Energy Minerals ranks #373 out of 728 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, Advanced Energy Minerals has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Advanced Energy Minerals' Gross Margin % compare to AA and CENX?
According to the Metals & Mining industry distribution chart, Advanced Energy Minerals ranks #373 out of 728 companies for Gross Margin %. This places Advanced Energy Minerals in the lower half of its industry. The industry median Gross Margin % is 26.21. Advanced Energy Minerals' value of 59.63% is 127.6% above this benchmark. 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 26.21, based on 728 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. Advanced Energy Minerals's current Gross Margin % of 59.63% is 127.6% 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 Advanced Energy Minerals and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Energy Minerals's current Gross Margin % is 59.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Energy Minerals stock overvalued right now?
Advanced Energy Minerals (ASX:AEM) has a current Gross Margin % of 59.63%. The current Gross Margin % is 59.63% and 127.6% above the Metals & Mining industry median of 26.21. Advanced Energy Minerals' overall GF Score™ is 15/100 with 2 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 Advanced Energy Minerals (ASX:AEM), the current Gross Margin % is 59.63% 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.
Advanced Energy Minerals Ltd is a world-wide supplier of ultra-pure aluminium derivatives. Its operations are based at two main sites: the Technical Development Centre in Montreal and first full-scale production plant at Cap-Chat, Quebec. Its products include: alpha alumina, gamma alumina both marketed under the SupALOX trade name, aluminium chlorides under SupACH and pucks made of compressed alumina under SupPUCK.
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