ARBASX:ARB -1.98%91 Gross Margin % is 56.14% as of Dec. 2025, which is 1% above its 10-year median of 55.43. GuruFocus rates ASX:ARB with a GF Score™ of 91/100 and a GF Value™ of A$35.39 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,313 Vehicles & Parts companies, ARB ranks better than 96.34% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. ARB's Gross Profit for the
six
months ended in Dec. 2025 was A$201.0 Mil. ARB's Revenue for the
six
months ended in Dec. 2025 was A$358.0 Mil. Therefore, ARB's Gross Margin % for the quarter that ended in Dec. 2025 was 56.14%.
The historical rank and industry rank for ARB's Gross Margin % or its related term are showing as below:
ASX:ARB'
s Gross Margin % Range Over the Past 10 Years
Min: 53.14 Med: 55.43 Max: 57.23
Current: 55.52
During the past 13 years, the highestGross Margin % of ARB was 57.23%. The lowest was 53.14%. And the median was 55.43%.
ASX:ARB's Gross Margin % is ranked better than 96.34% of 1313
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs ASX:ARB: 55.52
ARB had a gross margin of 56.14% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ARB was 1.00% per year.
ARB (ASX:ARB) 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
ARB had a gross margin of 56.14% 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.
ARB Gross Margin % Related Terms
ARB Gross Margin % Historical Data
* Premium members only.
The historical data trend for ARB'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 Auto Parts subindustry, ARB'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.
ARB Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, ARB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ARB'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.
ARB (ASX:ARB) has a Gross Margin % of 56.14% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on ARB and its competitors. This is near median its historical median of 55.43. Over the past decade, ARB's Gross Margin % has ranged from 53.14 to 57.23. According to the industry distribution chart, ARB ranks #48 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 3.7%.
Is ARB's Gross Margin % too high?
ARB's current Gross Margin % of 56.14% is near median its 10-year median of 55.43. Over the past 10 years, this metric has ranged from a low of 53.14 to a high of 57.23. The Vehicles & Parts industry median Gross Margin % is 19.84. ARB's value of 56.14% is 183% above this industry median. Based on the distribution chart, ARB ranks #48 out of 1313 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, ARB has a GF Score™ of 91/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ARB's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, ARB ranks #48 out of 1313 companies for Gross Margin %. This places ARB in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.84. ARB's value of 56.14% is 183% above this benchmark. Historically, ARB's own Gross Margin % has ranged from 53.14 to 57.23 over the past decade. While the company's 10-year median is 55.43 vs. the industry median of 19.84, ARB 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 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. ARB's current Gross Margin % of 56.14% is 183% 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 ARB and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARB's current Gross Margin % is 56.14%, which is near median its own 10-year median of 55.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARB stock overvalued right now?
Based on GuruFocus' analysis, ARB (ASX:ARB) is currently considered Significantly Undervalued. The stock's GF Value™ is A$35.39, compared to a current price of A$18.80 — trading 46.9% below its estimated fair value. The current Gross Margin % is 56.14%, which is near median its 10-year median of 55.43 and 183% above the Vehicles & Parts industry median of 19.84. ARB's overall GF Score™ is 91/100 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 ARB (ASX:ARB), the current Gross Margin % is 56.14% 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 ARB (ASX:ARB) Overvalued in 2026?
Based on GuruFocus' analysis, ARB stock appears to be undervalued.
The current stock price of A$18.80 is trading 46.9% below its estimated GF Value™ of A$35.39.
GuruFocus considers ARB to be Significantly Undervalued.
Key valuation signals for ASX:ARB:
Gross Margin %: 56.14% (near median its 10-year median of 55.43)
GF Value™: A$35.39 vs. price of A$18.80 (46.9% below fair value)
Industry Position: 183% above the Vehicles & Parts median (#48 of 1313)
No single metric tells the full story. See the ASX:ARB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ARB designs, manufactures, and distributes four-wheel-drive and light commercial vehicle accessories. The firm has carved a niche with aftermarket accessories including bull bars, suspension systems, differentials, and lighting. ARB operates manufacturing plants in Australia and Thailand and sales and distribution centers across several countries. The Australian division, which generates the vast majority of group earnings, distributes through the ARB store network, ARB stockists, new-vehicle dealers, and fleet operators.
91GF Score
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